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Affordable housing procedures

There may be opportunities to buy both existing low cost properties and new properties.  For a number of years some homes in the district have been built at low cost by agreement with the developer.  Discounts can vary between 10% and 50% depending upon when the property was built.  Usually the purchaser will buy the home outright but will always have to sell it with the original discount.  Sometimes a housing association or private developer will retain a share of the property and it will be sold as shared ownership or shared equity.

Who can buy affordable properties?

Most affordable housing will be restricted to buyers who

  • Have a local connection to the area where the home is located because they already live or work there
  • Have a financial need for low cost housing (hence we need to see proof of the buyers income and capital).

In order to decide what you can afford to pay the Council will add together

  • ·Your salary multiplied by 2.9 for a couple and 3.5 for a single person
  • Any savings or capital you have
  • Any other loan you may receive (eg from another family member)
NB.  The details of these restrictions will vary from scheme to scheme (depending on the rules in place at the time the scheme was built) You may need to check with the Council to see if you would qualify.
 

Finding out about low cost housing which is being resold and procedures for resales

Usually existing owners are responsible for arranging the sale of their own properties.  They must
 
1.      advertise them with the original percentage discount they received
2.      agree the valuation with the Council
 
Many of these will be sold through local estate agents and advertised in the local paper.  These properties will normally be marketed at the discounted price.  Look out for descriptions such as “discounted sale”, “shared ownership” or “section 106 property”
 

What to do if you have found a low cost property which you wish to buy

Applicants must be approved by the Council as eligible to buy the property
The eligibility criteria will vary according to when the home was built and where it is located.
 
You will need to complete a low cost housing application form (see below) and supply the evidence set out in the document "Additional information on completing your low cost housing application" (also below)
 
 
You should make sure you understand the restrictions on the occupancy and future resale of the property before you proceed with a purchase, (for example you will not be able to rent the property out.

 

Procedures for allocation of new low cost homes

Private developers and housing associations will advertise new housing schemes in the local press. This will probably be when the homes are nearing completion.  The advertisement will state the restrictions on who is eligible to buy the homes. 
 
The advertisement will also appear on this website.
 

How do I apply?

In order to buy an affordable home you will need to be approved by the Council as eligible to buy the home in question.
 
The Council does not keep a waiting list as criteria for individual properties may differ.  You can therefore only apply for approval when you have found a property which you wish to buy.
 
You should make sure you understand the restrictions on the occupancy and future resale of the property before you proceed with a purchase.
 
There are links to more detailed descriptions of the Council’s procedures below;
  1. Full version of the Council’s leaflet “Low Cost Home Ownership in South Lakeland
  2. Full details of the Council’s Affordable Housing application process
You will need to complete an application form and to read the full details of the arrangements for the sale of the property.  These will only be available once the advertisement for the new properties is published.
 

Prices of new low cost properties

Initial sale prices are currently expected to be between £70,000 and £110,000 after discount and depending upon the size of the property.