HOLD Shared Ownership Scheme

Finding a home that truly meets your needs can be a real challenge, especially if you have a disability. HOLD (Home Ownership for People with Long-Term Disabilities) is a Shared Ownership scheme designed to make getting onto the property ladder more affordable and flexible, especially for individuals with long-term disabilities.

It helps you buy a share of a home, making homeownership a reality by reducing the initial costs and providing a stepping stone to owning your property outright.

We're specialists in HOLD conveyancing and we can help you through every step of the process, from offer to moving day. If you've found a property and are ready to get the legal side sorted, read on to see how we can make it easier.

How is HOLD Shared Ownership different?

The HOLD scheme is a special type of shared ownership designed specifically for people with long-term disabilities in the UK. It's similar to regular shared ownership in some ways, but there are some important differences.

Exclusivity

The main difference is who it's for. HOLD is only for people with long-term disabilities, while regular shared ownership is open to a much wider range of people. This means the HOLD rules are a bit different, and they take into account the specific needs of disabled people.

Extra Funding

Another key difference is how it's funded. HOLD often gets some extra funding from the government (through the Homes and Communities Agency, or HCA). This can help keep the rent lower, which is really important for people on limited incomes.

You also might be able to apply for additional funding and support through HOLD to help with the costs of your home.

Flexibility

HOLD is more flexible when it comes to adapting a property. If you need changes to make a house more accessible, HOLD is more likely to take that into account. This is a big deal for many disabled people.

Complexity

Because HOLD is a bit more complex than regular shared ownership, it's really important to have a good conveyancing solicitor on your side.

That's where we come in. Our experienced conveyancing team understand the ins and outs of the HOLD scheme and will guide you through the process smoothly and efficiently.

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HOLD scheme eligibility rules

The eligibility rules are a bit more specific than for regular shared ownership, and they're designed to make sure the scheme helps those who need it most. Basically, you need to meet a few key criteria:

• Age: You need to be 18 or over.
• Disability: This is the big one. The HOLD scheme is for people with long-term disabilities. This can include physical disabilities, learning disabilities, mental health conditions, and other types of cognitive and sensory impairments. The disability must be long-term, meaning it's likely to last for a significant period.
• Work: Generally, the HOLD scheme is for people who are unlikely to be able to work. This is because it's designed to help people who might struggle to afford a home otherwise.
• Finances: You'll need to show that you can manage your finances. This is important because taking on a mortgage is a big commitment.

In shared ownership, you buy a share of the property and pay rent on the remaining share. Universal Credit's housing costs element may help with the rental portion of your shared ownership agreement. However, it typically does not cover the mortgage payments. You might be eligible for a Support for Mortgage Interest (SMI) loan in some circumstances, but this is a loan that needs to be repaid.

There are some extra rules if you have a learning difficulty or autism. These are mainly about making sure you have the support you need to manage your home and finances. Here's a breakdown:

• Benefits: You'll usually need to be eligible for high or middle-rate care Disability Living Allowance (DLA), Personal Independence Payment (PIP), or Attendance Allowance (if you're over 60).
• Credit History: A clean credit record is important. This means no judgments or court orders related to debts, no bankruptcy, and no outstanding borrowing or rental debts.
• Managing Affairs: You need to be able to manage your property and finances, either independently or with the help of someone acting on your behalf (like a Court Appointed Deputy). You could set up a Power of Attorney to make decisions on your behalf if you become unable to do so.
• Identification: You'll need to be on the electoral roll or have a valid ID.
• Employment and Criminal Record: You generally shouldn't be able to gain employment that would replace your benefits. Also, having a criminal conviction might affect your eligibility.

How does the HOLD scheme work?

Here's a breakdown of the process, from finding a property to getting the keys, with a focus on where the conveyancing fits in:

• 1

  Finding a Property

  You'll need to find a property you like and that meets your needs. This is the same as buying any other house – you can browse online, visit estate agents, and view properties. Remember that this property will need to be part of the Shared Ownership scheme, but if you cannot find one, a property on the open market might be a viable option.

• 2

  Applying for HOLD

  Once you've found a place, you'll need to apply for the HOLD scheme through Homes England. They'll assess your eligibility and guide you through the process.

• 3

  The Housing Association

  If your application is successful, a housing association will get involved. They'll actually buy the property with you. This is where things start to get a bit different from a regular purchase.

  You'll buy a share of the property (usually a percentage), and the housing association will own the rest. You'll then pay rent to the housing association on the share they own.

  To buy its share of the property, the housing association uses grant funding from the Homes and Communities Agency (HCA) which helps to keep your rent low.

• 4

  Support for Mortgage Interest (SMI)

  To help with your mortgage payments, you might be able to get help through the government's Support for Mortgage Interest (SMI) scheme.

  This is a loan that helps cover the interest on your mortgage. It's important to understand how SMI works, and we can connect you with a mortgage broker who can assess your financial situation and help you find a suitable mortgage for the share you wish to buy.

• 5

  The Conveyancing Process

  This is the legal bit where the ownership of the property is officially transferred to you and the housing association. You'll start by instructing a conveyancing solicitor to act on your behalf. The legal documents, including the title and lease agreement, will be reviewed and your solicitor will commission property searches.

  Once all legal checks are complete, searches are in, enquiries are raised and satisfied, the mortgage is fully approved, and you've had a homebuyer survey, contracts will be exchanged and a completion date will be set.

• 6

  Moving In!

  On the agreed completion date, you will receive the keys to your new home and can move in.

How to staircase with HOLD Shared Ownership

One of the great things about shared ownership is the option to 'staircase.' This means you can buy more shares of your property over time, and eventually, you could even own it outright.

With HOLD, the staircasing process is similar to regular shared ownership, but there are a few things to keep in mind:

• Share Purchase: The minimum purchase for buying more shares under HOLD is 5%. You might need to arrange additional mortgage financing to staircase.
• Check Your Agreement: Your shared ownership agreement will set out the rules for staircasing, including how often you can do it and how the price of the extra shares is calculated. It's really important to read this agreement carefully.
• Valuation: Usually, you'll need to get a professional valuation of your property (we can help with this too). This will determine the current market value, which is used to calculate the price of the shares you want to buy.
• Legal Work (Conveyancing): Buying more shares means more legal work. The conveyancing process for staircasing is similar to the initial purchase, but it's usually a bit simpler. It'll include your conveyancing solicitor reviewing the valuation, updating the lease agreement, and communicating with the housing association. This might range from £500 to £1,500 INC VAT. We can handle all the legal paperwork and ensure the transfer of ownership is properly recorded.

With HOLD, it's worth noting that the availability and terms of staircasing might be slightly different depending on the specific housing association and the details of your agreement. It's always best to speak to them directly to get the most accurate information.

Pros and Cons of HOLD Shared Ownership

Like any big decision, the HOLD scheme has its ups and downs. Here's a breakdown:

HOLD scheme costs

It's not just about the mortgage and rent; there are other expenses to consider, some of which may be specific to your circumstances as a disabled homebuyer. Let's look at an example to illustrate potential costs:

Let's imagine a one-bedroom, adapted bungalow with a £250,000 market value. This property might have features like wheelchair access, a wet room, and other adaptations. An individual with a physical disability decides to purchase a 60% share of the property.

• Property Value: £250,000.
• Initial Share Purchased: 60% (£150,000).
• Mortgage Required: £120,000 (assuming a 20% deposit of £30,000).
• Rent on Remaining Share (40%): This will vary depending on the housing association and the specific property, but let's assume it's £300 per month.

Below is a table of potential costs associated with the HOLD scheme. Please note that these are indicative costs for illustrative purposes only.

Please note there is no guarantee that our mortgage broker can help with mortgage interest relief.

You may be eligible for support with your monthly housing costs through Universal Credit for the rental portion of your shared ownership. While Universal Credit doesn't typically cover mortgage payments, you might be able to get a Support for Mortgage Interest (SMI) loan for help with interest payments. It's important to check your eligibility for these benefits.

Other Costs to Consider

• You'll need a deposit for your mortgage, typically between 5% and 10% of the share you are buying.
• Legal Fees (Conveyancing). Our fees start from £723 INC VAT for the legal work involved in buying your home. Our fixed fee does not include searches but does include contract reviews and the transfer of ownership.
• Survey Fees. It's highly recommended to get a survey done on the property, especially if it's an older property, to identify any potential problems or necessary adaptations. Our fees for a house survey start from £499 EXC VAT.
• The housing association and the mortgage lender will require a valuation of the property. The lender needs this for their own risk assessment, and the housing association needs it to calculate the price of the share you're purchasing, the amount of rent you'll pay, and any future staircasing calculations.
• Stamp Duty Land Tax (SDLT) may be payable depending on the share you purchase and the current stamp duty thresholds.
• Don't forget moving costs, such as hiring a removal company or van. If you require specialised moving assistance due to your disability, this may cost more.