What is Low Cost Home Ownership?

Lost Cost Home Ownership (LCHO) allows prospective buyers to purchase a stake in a property of  up to 70% of the value of the property.

The balance of the cost is covered by a loan which is repayable when the property is sold.

Could I/we buy one of these properties?

There are certain criteria which every successful applicant has to meet to be able to buy these homes: availability is limited and we need to make sure they are sold fairly.

• You'll need to have been living and/or working in Cardiff for at least the past six months.
• You'll probably be a first-time buyer; in some cases this will include people who may have already bought a home jointly with someone else, but due to a change in personal circumstances, can now become a first time buyer as an individual.

Importantly, as with any house sale, you will need to be in a position to meet the long term financial commitment of a mortgage to buy the homes.

How much are these Properties?

The prices of properties will vary dependant on the scheme - subject to final valuations. There maybe an additional service charge and ground rent on top of your mortgage payments.

What if I already have a part interest in another property?

If you already partly own another home you would not be eligible to buy one of these properties. As you would expect, these properties are offered for sale solely on an owner occupier basis and are not available to investors.

Do I/We have to earn a specific amount to be eligible?

You simply need to earn enough to finance your mortgage - this is to ensure that the properties are bought by people who can afford the mortgage up to 70% - but not 100 percent - of the property.

Will I need a deposit?

This will depend upon the scheme, usually we require a £250 non-refundable deposit to reserve the property once you have been selected.

I've never heard of buying a home like this before: how does it all work?

We all know only too well the massive rises in house prices over the past several years have left people struggling to get onto the property ladder. Purchasers will only have to fund up to 70 per cent of the full sale prices, through either a mortgage or mortgage and deposit combined. They will receive a loan for the remaining percentage with nothing to be paid until the property is sold.

The buyers will own their properties outright and can pay off the loan after three years if they wish, but are not obliged to pay it back until they sell, when it is calculated as a percentage of the sale price.

(NB: This is an illustration only)

You are responsible for your own costs such as legal fees on the purchase and sale of your property.

Can I sub-let my property?

NO. Successful applicants must occupy thier property as their only or principle home.

What happens when I sell my home? Do we need to offer it to CCHA first?

If you haven't bought out the remaining percentage share, you will need to provide CCHA with a written valuation from a RICS qualified residential surveyor.

Once we agree your proposed selling price, we'll try and identify someone else from our own database who is eligible to buy under the same terms to purchase your property. If we don't find anyone suitable you can sell your property on the open market repaying the remaining percentage of the final sale upon completion.

How do I apply?

You can apply by contacting Cardiff County Council on:

Tel: 029 20 537 366 (Monday to Friday 9.0am to 5.00pm)
E-mail: lcho@cardiff.gov.uk

You will need to register on the Councils Low Cost Home Ownership database and then an application pack will be sent to you.

Won't lots of people want to buy these Properties?

We are anticipating a lot of interest but no-one meeting the basic criteria should be put off applying, we'll advise you when you call us on how quickly you should return your application.

What is the deadline for applications?

There is no deadline but we would advise you to get in touch as soon as possible if you are interested.

What information will I need to provide with my application?

You will need to provide the following infomation:

• An agreement in principle from your mortgage provider
• Proof of capital, savings and investments (eg bank accounts, saving accounts, premium bonds)
• Details of your expenditure (eg credit cards, hp, bank loans)

What LCHO properties are currently or soon to be available?

Our New Homes page to see our current developments that may include LCHO or follow this link - www.homeswithinreach.co.uk.

Financial Information

The loan provided by CCHA is available only to a restricted group of people who cannot meet the cost of outright purchase on the open market but who can afford a mortgage equivalent to an agreed percentage of the value of the property. You may write to or telephone CCHA for a written quotation about the loan.

You may repay the loan at any time but it must be repaid if you sell your home. You only have to make one repayment which is the agreed percentage of the market value of your home at the date of repayment. The repayment percentage would be taken into account within the purchase price in the event the sale is back to CCHA under the pre emption sale route.

This loan must be secured by mortgage over the home you buy. YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP THE REPAYMENTS ON A MORTGAGE OR OTHER LOANS SECURED ON IT.