Frequently asked questions
What is a Help to Buy Agent?
A Help to Buy Agent is usually an appointed Registered Provider who provide a point of contact for people looking for shared ownership. By registering with them, you will be notified about all the shared ownership developments available within your chosen area.
What will the upfront costs be?
There is no product fee to purchase a new build shared ownership property through heylo. However in addition to your deposit, it is suggested that you will need approximately £4,000 to cover solicitor, legal and mortgage arrangement fees.
What will the monthly cost be?
In addition to your household bills, you will pay monthly rent on the unpurchased share and your mortgage payments on the share you own (if you have one). Monthly rent starts at 2.75% per annum (on the value of the share you do not own). Rent will increase each year with inflation (RPI) + 0.5%. As well as the rent, you may need to pay a service charge fee. Your solicitor will be able to advise you on the exact costs. All monthly payments to heylo will be paid by direct debit and collected by heylo.
What is the service charge for?
Service charge is payable to cover the cost of estate, ground fees and buildings insurance.
Do I pay Stamp Duty Land Tax (SDLT) on a shared ownership property?
When you purchase a shared ownership property, you may only need to pay SDLT on the price of your share. However please seek further legal advice.
Do I have to insure my property?
You will need to make sure you have the appropriate insurance in place. All properties purchased by heylo have compulsory buildings insurance, although you will need to insure your contents. If you staircase to 100%, you will be responsible for buildings insurance.
Can I sublet my home?
You are unable to sublet your entire property, however you are able to rent a room within the property.
You are able to apply in writing to heylo, who will either grant permission or request more information.
What happens to my property if I die?
We would recommend you include in your will details of who you would like the share of your property to be passed to.
When will I stop paying rent?
You will stop paying rent when you own 100% of the property. There may still be estate or service charges which you would still have to pay after staircasing.
What if I miss a rent payment?
Your rent is a contractual agreement between you and heylo. If you fall behind with your rent or service charges, heylo will contact you to arrange payment or a payment plan.
How do I buy more?
You can increase your share in your property at any time after you complete. This is known as 'staircasing'. Each time you staircase, you will need to budget for additional fees;
- Valuation fee
- Legal expenses
- SDLT (if applicable)
- Mortgage fees
What happens if I want to move?
If you would like to sell your home contact heylo who will guide you through the process.
Why is my home sold leasehold?
All shared ownership is sold on a leasehold basis, even if you are purchasing a house. This is because heylo are your landlord for the unsold share. If you staircase to 100%, where possible the freehold will be transferred to you and the shared ownership lease falls away.