Shared Ownership Scheme

SeeAbility has worked in collaboration with a number of partners over a number of years to develop opportunities and models which make it practical for individuals with complex needs and visual impairment to become home owners, therefore achieving many of the major elements required by everyone in their family and support network -

• Equality  
• Independence  
• Choice  
• Flexibility

In June 2006 SeeAbility opened the UK's first shared ownership extra care scheme in Exeter, in partnership with Signpost Housing Group and Devon County Council. The scheme consists of eight purpose-built, self-contained flats, some communal space and an office for use by staff. SeeAbility employ an on-site team to provide support to people living in the flats, all of whom have a learning disability and visual impairment. Some of the individuals require high levels of support and would be characterised as having complex disabilities. The unique feature of the scheme is that the individual living here part-own their flat.

On the back of this experience we have been working to find a way of opening up the opportunity of home ownership to a greater number of disabled people. There are similar opportunities coming on stream in Plymouth, Bristol, Ilminster, South Gloucestershire, and Vale of Glamorgan, SeeAbility are also looking to develop this opportunity for other interested individuals.

The scheme

The shared ownership scheme developed by SeeAbility and partners has a number of unique features:

• Any individual with disabilities can become a homeowner as long as they can claim income support. 
• Individuals do not need an income or capital. 
• The scheme can be used by any individual, irrespective of their mental capacity, although elements of mental capacity act need to be considered
• It is possible to buy into new build schemes or buy a re-sale property on the open market
• Help is available for the applicant all the way through the purchase process
• The scheme is very low risk. Guarantee is given against negative equity and property repair and maintenance costs are covered

How the shared ownership scheme works

Shared ownership, in the context of this scheme, means that an individual with disabilities buys a share in the property in which they want to live. The other share in the property is owned by our housing association partner. The proportion of the share can vary from case to case, depending on a number of variables. Once the property is purchased, the occupant can live in it for as long as they like.

The individual pays for their share of the property using a mortgage of a maximum of £100,000 provided by our lending partner. Mortgages are offered on an interest-only basis for a period of 40 years. At the end of the 40 year period the mortgage can be renewed. They pay their mortgage by making an income support application. As part of the claim, they are entitled to receive Income Support Mortgage Interest (ISMI) relief. This payment will be made directly to the mortgage lender. ISMI is capped at making interest payments on loans up to £100,000. Our lending partner has agreed that mortgages taken out using our scheme will track the ISMI rate, eliminating the risk of mortgage arrears.

The individual pays rent to the housing association on the proportion of the property owned by the association. Rent payments are covered by making a housing benefit application. The amount of housing benefit available for any given property effectively sets the ceiling at which a property becomes unaffordable. This will vary from area to area.

Individuals of any mental capacity can apply for a mortgage, but special arrangements have to be made with the Court of Protection for those who do not have sufficient mental capacity to understand the obligations of a contract.

A guarantee is given to the individual that they will not suffer the risk of falling into negative equity, nor will they be responsible for the repair and maintenance of their property. In both cases the housing association will bear the risk. Applicants to the scheme will be required to trade their right to the growth in value of their share of the property, in return for this guarantee. Their share in the growth of the value of the property is in effect returned to the housing association on the eventual sale of the property. This feature of the scheme also allows housing associations to develop new schemes without using Housing Corporation grant.

Should you be interested in discussing our shared ownership scheme with someone at SeeAbility please contact one of our new business managers.