Partial ownership housing

It offers first-time buyers a way to get on the property ladder.

Partial Ownership is for buyers who cannot afford to buy a property in the normal housing market but could afford to buy part of the cost of a property. 

At present there are no Partial Ownership Mortgage providers for Alderney, so the percentage purchased would need to be self-financed.

Find out more here.

If you are able to support a mortgage but the bank cannot lend you enough to purchase a property on the market suitable for your needs, then the partial ownership scheme may be for you. As only a portion of the property is purchased, you need to borrow a lesser amount from the bank and pay a discounted rent on the part still owned by the AHA.

Until banks are able to provide partial ownership mortgages in Alderney the percentage purchased would need to be self-financed

You purchase the maximum you can afford, between 40% and 80% of the property value, at the time of the initial purchase. At a later date you can purchase more of your property in multiples of 10% of the current value. This is called ‘staircasing’. 

You do NOT need a 5% or 10% Deposit as NatWest International offer 100% mortgages on the equity stake being purchased (up to a maximum of 80% of the value of the property) subject to the applicants meeting the banks requirements.  We do strongly encourage people to regularly save and any deposit puts you in a better position to secure a mortgage.

Subject to Partial Ownership mortgages being available in Alderney

You need averagely £3,000 for legal costs, and mortgage fees

There is no Document Duty payable

There are no Court fees

The two main Advocate firms who handle the conveyances charge their fees based on the equity value you buy (as opposed to the full value of the property) which keeps your legal costs down.  The Advocates are Collas Crill, and Ogiers.

You can buy between 40% and 80% of the value of the property dependent on your finances.  You are required to buy as much as you can comfortably afford.

When you wish to sell in the future AHA are a guaranteed buyer from you, for whatever the property is worth at that time, valued by an independent local valuer approved by the Banks

As your finances improve over time you can buy more value in the property, reducing the rent you pay AHA (for the share we still own), and you can then sell back to AHA and buy in the private sector using the equity that should build up over time (all subject of course to movements in house prices) 

You are an owner occupier, able to improve and adapt your home

You own part of the value of your home and get the benefit of that share if prices increase over time

How long should I expect to hear back about my Partial Ownership application, once submitted? 

Once an application has been received into the office, you will hear back from our Allocations Officer within 28 days.  It is important that you submit the application with all of the supporting documentation so that there are no further delays in processing.  A full list of documentation to be submitted can be found on the back of the form and these documents are to be submitted for both applicants.

Are the minimum income requirements based on one person or can a joint income count towards the minimum amount required?

The minimum earnings are based on the total gross amount received per annum.  This can be solely or jointly, depending on if this is a sole or joint application.

Is there a minimum time period before you can begin staircasing your property?

The minimum period would be 12 months before you can staircase.  If you are wishing to staircase, you would need to get your property revalued and the stair casing amount would be based on the valuation of your property.

When staircasing does the 10% have to come as a chunk amount or can it be in instalments/increases to the mortgage payments?

The minimum amount you can staircase would be 10% and 10% increments thereafter.

Is there a limit to the number of times you can apply for partial ownership?

No, if you are rejected for any reason you can reapply at any time if your circumstances were to change enabling you to be eligible.

How do renovations or structural alterations work in a partially-owned property?

Before you carry out any works, you would need to contact The Alderney Housing Association for prior permission.

If you have any questions or would like to make an appointment to discuss Partial Ownership further, please to not hesitate to contact AHA