Selling part of your home - Safety Net
1. Introduction
This produce is intended to assist homebuyers in financial difficulties
Its main principles are
- It is only open to homebuyers who own less than 100% of the equity in their home.
- The Homebuyer must demonstrate through independent debt counselling provided by CHAS that this is their only option and that they will be able to afford the new rent and mortgage charges.
- It is available at our discretion
- It is a last resort option to enable shared owners to retain their home despite changes in financial circumstances or health
- The homebuyer an staircase down to a minimum of 15% share
- If your circumstances improve you can buy back shares
- Griffin Homes must have an adequate balance of funds
If you do not qualify for this scheme, Griffin Homes may be able to help through its self funded scheme - Safety Net +Plus
2. Eligibility Criteria
Safety Net is available at the discretion of Griffin Homes which will only be able to assist if all eligibility criteria are met by the Homebuyer and there are sufficient funds in its recycled capital grant fund.
- The homebuyer is experiencing difficulty in maintaining mortgage repayments
- The homebuyer currently owns less than 100% of the property
- The homebuyer must demonstrate through independent debt counselling provided by CHAS that this is their only option and that they will be able to afford the new rent and mortgage charges. This must include consideration of options such as loan re-scheduling, selling and moving to more affordable property.
3. Rent Policy
When you sell back a portion of your equity, Griffin will charge a pro rated rent to reflect the sale.
This rent will increase annually in accordance with Griffin's rent policy,
4. Funding Safety Net
The funding for this scheme is provided from the Housing Corporation's Recycled Capital Grant Fund.
5. Staircasing Up Again
If your situation improves you have the option to purchase a greater share in the equity of your home. You cannot apply to staircase up for 12 months after the date of the completion of the reverse staircasing.
6. Legal Aspects
New Leases Staircasing down provisions are incorporated into all of our new Homebuy leases
Existing Leases When staircasing down is agreed the lease will be amended by a Deed of Variation to record the change in equity and specified rent.