1. Applying for the scheme
What is the Affordable Housing Scheme?
Wigan’s Affordable Housing Scheme is part of the Government’s initiative to improve access to housing. The scheme helps first time buyers, and others with moderate incomes, enter into home-ownership by providing affordable housing for sale.
Since April 2006, Wigan Council placed a requirement on all property developers to provide 20% of affordable homes on sites where they are building 25 or more properties to meet housing need in the Borough.
The Affordable Housing Allocations Policy supports Wigan’s Affordable Housing Strategy’s aim of “An affordable home for all within a desirable community.”
How does the Affordable Housing Scheme work?
Properties are offered for sale at discounted prices of the full market value. For example, a £100,000 house, with a 25% discount, will be offered to qualifying applicants on the Affordable Housing list for £75,000. Every time the property is sold, it must be sold with the discount to make sure that the home remains affordable in the future.
How do I apply?
You need to complete an Affordable Housing Application form. Application forms are available from the following:
· Housing Options Property Shops:
Housing Options Property Shop - Wigan Housing Options Property Shop – Leigh
3 Library Street 4-6 Market Street
Wigan Leigh
WN1 1NN WN7 1DS
Tel: 01942 404128 Tel: 01942 404091
e-mail: housing.affordable@walh.co.uk website: propertyshop.walh.co.uk
· At the site office at any development where affordable housing is available.
Please return your completed application to one of the Property Shops. Any information you provide to us will be treated in the strictest confidence.
When the Property Shop has received your completed Affordable Housing Scheme application form, we will assess your application. Providing you have submitted all relevant supporting information, we will write to you within 10 working days informing you if you have been accepted on the Affordable Housing Scheme. This letter will include details of your unique application number. We may write to you requesting further information. If we do this you will have 10 days to provide the information. If after 10 days, we haven’t heard from you, we will cancel your application and you will have to reapply to the scheme.
If you are not accepted on the Affordable Housing Scheme, we will write to you and explain why.
Who is eligible to apply?
Personal criteria
· Be registered with the Council’s Affordable Housing Scheme (via the Property Shop or Plumlife).
· Intend to occupy the affordable home as their only or principal home for the duration of their ownership. ‘Only or principal home’ means that you must occupy the property for at least 6 months every year.
· Live, work or have a long standing family connection to the borough of Wigan. Specifically, one of the criteria below must apply to you:
Ø You are living in the borough and have been for the previous 6 months.
Ø You have been permanently employed in the borough for at least 6 months (this relates specifically to the usual place of work not the head office of the employer).
Ø Not currently live in the borough but have close family in the borough and need to move in order to give or receive support. (Close family will normally be defined as parents, adult children or brothers or sisters who have lived in the borough for a period of at least 5 years). Only in exceptional circumstances will other relatives be accepted.
Ø Not currently live in the borough but have lived in the borough for a period of at least 6 months in the last year or 3 years in the last 5 years.
Ø Do not currently live in the borough but are taking up an offer of permanent employment in the borough (this relates specifically to the usual place of work not the head office of the employer).
· Owners of existing affordable homes can apply to buy a new home thorough the scheme and will be subject to the same criteria.
Financial criteria
To qualify for the Affordable Housing Scheme you must:
· Be otherwise unable to buy a suitable home, in the locality, outright. This will be assessed as 3.5x household income. We will also take into consideration any savings that you may have, with an allowance of £3,000 disregarded. Any savings greater than £3,000 will be taken into account when assessing the eligibility for the financial criteria at the stage when you have reserved a property.
· The ratio of 3.5x household income may be reduced where, following a full financial assessment, this would not be affordable due to other financial commitments.
· Be able to fully fund the discounted equity share value of the home, via a conventional mortgage, other loan, such as Islamic mortgage, and or savings. This will be established by undertaking a full financial assessment. Where a Qualifying Person proposes to secure an interest only mortgage they must also secure a suitable means of repayment of the capital such as an ISA, endowment or other savings product. Where there is a service charge payable for the affordable home, this will be taken into account when considering affordability.
· Have sufficient savings to pay other associated costs, such as conveyancing.
· Obtain a mortgage certificate from a suitable lender, where a mortgage is required, and be in a position to exchange contracts within the agreed period.
· Any Qualifying Person(s) who currently owns another property will be required to place it on the market and to have secured a sale subject to contract at the time they reserve an affordable home, any equity released from the sale will be taken into account.
· If you have not sold your own property at the time of completion on your new affordable home, you will have to liaise directly with the Developers to request an extension of time. In the event of you being unable to sell your home, you will be unable to proceed with the completion of sale on the affordable property.
· The Property Shop with require details of your income and expenditure so that a basic financial assessment can be carried out to ensure you have sufficient income to purchase an affordable home.
· Have obtained independent financial advice in relation to purchasing a property though the scheme and a full financial assessment must have been completed based on your current financial circumstances. This will include an assessment of outstanding rent or mortgage arrears or other debts.
Joint applicants
Legally, up to 4 people can apply as joint applicants. If more than 2 joint applicants would like to apply, please complete two separate applications and attach a covering note explaining this. We will then process and assess this information as one application.
All joint applicants will be expected to become joint owners and the financial criteria will be applied to the joint income of applicants. A deed of trust providing occupation rights will not be accepted as an alternative to becoming joint owners.
Only one applicant needs to qualify through their personal circumstances.
Additional priority for properties
The council may select certain properties in advance of their release for sale to Qualifying Persons with certain Additional Priority. In such cases Additional Priority will apply to the first reservation of the selected home only and will be time limited, after which the affordable home may be reserved by any Qualifying Person. This will be clearly stated on all promotional materials for the selected properties.
Additional priority criteria (in no particular order)
· Existing social housing tenants who will be vacating their tenancy to move into the affordable home.
· Applicants who have presented as homeless and have been found to be homeless by Wigan and Leigh Housing Options Advice Centre. This includes both priority and non priority cases but excludes those found intentionally homeless.
· Applicants who live within the township where the affordable housing is available.
· Applicants living in confirmed clearance areas or subject to a Compulsory Purchase Order (CPO), including those where a CPO could be made but the owner agrees to sell the property to the Council by agreement.
· Medical needs (these will be defined on a property to property basis and suitable applicants will need to meet this criteria).
· Families with children – to be matched with suitable properties available.
The Council may waive one or more of the financial criteria or qualifying circumstances where the Assistant Director Housing Regeneration (or equivalent) agrees that the exceptional circumstances of a case make it reasonable to do so.
2. Choosing a property
How do I check if properties are available?
Available properties will be advertised in the Property Shops, the Property Shop Weekly (available at the Property Shops and libraries) the Wigan and Leigh Reporter and Leigh Journal newspapers, site offices (or developments where affordable homes are available to buy) and the Property Shop website propertyshop.walh.co.uk.
What should I do when I see a property that I like?
You will only be able to reserve a property once you have been accepted onto the Council’s Affordable Housing Scheme (you will receive a letter when your application has been processed).
If you want to reserve a property, you must take a copy of the letter which confirms that you have been accepted onto the Affordable Housing Scheme (this letter will have been sent to you shortly after you returned your completed Affordable Housing Scheme application).
You will then be required to pay a reservation fee. Once you have done this, the property is reserved for you. The Developer will then notify the Property Shop and provide written confirmation of the property plot number and price.
You will then need to supply evidence of your income, savings, benefits and equity held in your current home (if applicable) to the Property Shop within 5 working days.
The Property Shop will then check that your application meets with the criteria for the property that you have reserved. If you do not meet the criteria, we will arrange for the Developer to refund the reservation fee to you. Please note that it may take between 4 -6 weeks before you are reimbursed.
After reserving a property, you must contact an independent financial adviser to obtain confirmation that you are able to fund the mortgage for this property, based on your financial circumstances, and obtain a mortgage in principle for that property. The independent financial adviser must be registered with the Financial Services Authority (FSA). A list of Independent Financial Advisors familiar with the Affordable Housing Scheme is available from the Property Shop. The independent financial adviser will undertake a full financial assessment of income and expenditure, including all financial commitments, before approval can be given that the sale can proceed. This financial assessment will make sure that:
· You are in a financial position to obtain a mortgage
· If you need assistance to buy
· You are given advice on the range of mortgage products available
· You understand the financial commitment required in terms of repayments, insurance, fees etc.
On receipt of all the information from your independent financial adviser, the Property Shop will notify you and the Developer within 5 working days if the sale can proceed. It is important that you do not instruct solicitors or pay survey fees until you have received notification from the Property Shop that the sale can proceed.
If you do not provide required information to the Property Shop, we will send you a letter which will give you 10 working days to provide any outstanding documents. If you do not provide this information then we will suspend your application.
If you do not meet the criteria for the property, we will notify you and the Developer. We will then arrange for the reservation fee to be refunded to you.
Once you have obtained a mortgage offer in principle and received confirmation that the sale can proceed, you will need to instruct a solicitor. You can then arrange the mortgage directly with the lender (e.g. bank/ building society). You must make sure that the mortgage lender is aware that the property you are purchasing is an affordable property. You will be charged for any legal advice and also for conveyancing costs.
Services charges
There will be a monthly or annual service charge payable for some types of accommodation (usually apartments). Service charges cover costs such as window cleaning, communal hallway cleaning and maintenance of communal areas and gardens. You will be notified of all service charges by the Developer.
3. Appeals and complaints & annual review
Can I appeal, if I am not accepted onto the Affordable Housing Scheme?
Your application will be assessed and you will be notified whether you have been accepted on to the Affordable Housing Scheme or not. If you would like to appeal against a decision, you can do this by:
· Telephoning the Property Shop (Wigan Property Shop Tel: 01942 404128); (Leigh Property Shop Tel: 01942 404091).
· In person by visiting the Property Shop
· By writing to the Property Shop
· By e-mail: housing.affordable@walh.co.uk
The details of your appeal will be considered by a senior officer. We will write to you explaining the reasons for our decision within 10 working days of receiving your appeal.
What if I have a complaint?
Please contact the Property Shop and tell us what you are unhappy about. Please provide details of the matter and who was involved.
You can contact us with the details of your complaint by:
· Telephoning the Property Shop (Wigan: Tel: 01942 404128) (Leigh: Tel 01942 404091).
· In person by visiting the Property Shop
· By writing to the Property Shop
· By e-mail: housing.affordable@walh.co.uk
All customers who make a complaint will be treated fairly and objectively. We will investigate and respond to your complaint within 10 working days. If we are unable to meet this time scale, we will send you a holding reply to tell you this and explain why.
When we have responded to you, if you are still not satisfied with the decision or the way the case has been dealt with, you can write to the Local Government Ombudsman or apply for a judicial review.
If your complaint is about the Developer you must complain directly with them.
Annual review
All registered applicants will be contacted annually to check that they wish to remain registered on the affordable housing scheme. If you do not reply within 10 working days, we will presume that you no longer want to be registered with the Affordable Housing Scheme and we will cancel your application.
Should you later wish to reapply to the Affordable Housing Scheme you will need to complete a new form.
Monitoring and customer feedback
The Affordable Housing policy will be monitored by the Council every 6 months. We will use customer and partner’s feedback to monitor and evaluate the policy and address any areas where the service can be improved.