The Incremental Purchase Scheme only applies to new Dwellings (excluding duplex units/flats/apartments) which have been specifically designated by the Local Authority as being eligible for purchase under the Scheme. When a new tenant is being offered a dwelling, they will be advised if it has been designated under the Incremental Purchase Scheme.
Under the Scheme, the purchaser pays a discount price for the dwelling and in return receives full ownership and responsibility for maintaining and insuring it. The Housing Authority in return places a reducing charge on the property that is equivalent to the discount afforded to the purchaser (lower income applicants receive 60% discount and higher income applicants receive 40% discount). The charge share is released to the purchaser over the period of the charge which can range from 20 to 30 years.
The purchaser can re sell the property at any time at market value with the Housing Authority being paid an amount equal to the proportion of the outstanding equity charge on the property. The Housing Authority has however first option of buying back the property in the event of the re sale during the charge period.
Building Energy Rating (BER) Certificate
Building Energy Rating Certificates must be issued in respect of all dwellings offered for sale from 1st January 2009. This Certificate gives an objective scale of comparison for the energy performance of the dwelling ranging from A1 to G with A1 representing the most energy efficient, and G representing the least energy efficient. The dwelling is valued having regard to the BER Certificate and the Council are under no obligation to carry out any improvement to the energy performance of the dwelling.
Agreement in Principle letter
The Housing Authority will first determine whether or not a household meets the basic eligibility and income requirements in order to be eligible for consideration to purchase under the Scheme. Where, on investigation, the Housing Authority considers that a household meets these requirements, it will issue confirmation of agreement in principle to enter into a incremental purchase arrangement with the household. This agreement in principle will be conditional that the household, prior to the completion of the sale, gives to the Housing Authority, written notice of loan approval or otherwise establishes, to the satisfaction of the Housing Authority its capacity to pay the purchase money for the dwelling.
Mortgage
If the tenant is unsuccessful in obtaining a mortgage from both a Building Society and a Bank they may apply to this Council for a mortgage.
Incremental Purchase Scheme Application Form and Explanatory Notes