Peabody is one of the largest housing associations in the UK with a selection of homes throughout London and the Counties. One of the many ways to buy a home with us is through Resale, where you buy a pre-owned property through Shared Ownership.
What is a Shared Ownership Resale property?
Resale properties are homes that a current owner bought through Shared Ownership and now wishes to sell. The principle is the same as buying a new build through Shared Ownership but you must purchase at least the share that the seller currently owns.
Within new build developments, Shared Ownership is usually only available to people living or working in the borough where they are looking to buy. But that's not normally the case with Resale properties, which makes moving to a new area easy to do.
We often sell our new build properties ‘off-plan’, i.e. before they are finished. With Resale you can view the property you are looking to buy a share in and move in to a development where the neighbours are already settled into.
Who can buy a Resale property?
Anyone who cannot afford to buy a suitable home on the open market may apply as long as their total household income is no more than £90,000 per annum. A lower income threshold (£80,000) is applicable for developments outside London boroughs.
If you live outside one of the London boroughs, you must apply to the local Homebuy Agent, who keeps the central register of applicants who wish to be considered for government funded affordable housing. We will only offer part buy, part rent properties when we have received an approved registration from the Homebuy Agent.A guide to Resale
A Resale property is a Shared Ownership property that the current owner bought new from us or as a Resale home. As the property is part of the part buy/part rent scheme, it is partly funded by the government and aims to help first-time buyers.
Shared Ownership properties are designed as a stepping stone towards completely owning your own home, allowing you to buy as much as you can afford. Buying a resale property makes you an owner-occupier, not a part tenant and you'll need to buy at least the current owner’s share on the existing lease.
Your lease is a legal document that proves you own part of your home and sets out certain conditions. Such as how often your rent and service charge is reviewed, selling or buying further shares and your rights and responsibilities as owner-occupier.
As you own the lease on your property you will become a ‘leaseholder’ and also the ‘landlord’; and will have the same rights and responsibilities as a full owner-occupier.
If you decide to buy the remaining share of your home, you will own your property outright. If you own a house, your solicitor will arrange for you to get the freehold (in most circumstances) like any other house owner. If you own an apartment, you’ll remain a leaseholder like any other apartment owner. This is because if your home is in a block of apartments, your lease sets out responsibilities for use and maintenance to all shared areas.
You will still be responsible for the ground rent and service charge which will include buildings insurance. You will require a solicitor when buying a property to deal with the legal work associated with your mortgage and home.
If you buy a Resale home through Shared Ownership:
- You will own part of the value of your home, rather than paying rent with no return.
- Your monthly mortgage and rent can work out cheaper than buying outright, and often not much more than renting.
- You can buy more shares (Staircasing) or sell your share and move if you want to in the future.
- You buy the share the current owner owns or more if we feel you can afford it.
Search For Resale Homes by Peabody New Homes
We have a selection of resale homes available throughout London and the Home Counties. Take a look at our available homes and register your interest to be invited to view.
Find a Home
Find your place to call home with Peabody. We have a wide selection of homes throughout London and the South East available through Private Sale and with buying assistance including Shared Ownership and Help to Buy.
Shared Ownership is a part buy/part rent scheme that makes it possible for first time buyers to purchase a property that otherwise would not have been affordable. It is a government-backed scheme launched in 2006 for people who are unable to afford to buy a home at full market value.