With Home Stepper you can purchase shares up to 75% of the Linden Home you would like to buy, based on how much you can afford.
Once you buy your new Linden Home, Sage Homes become your landlord, they’ll grant you a 990-year lease and you will pay monthly rent on the unowned share of your home. This means you will be able to live in your home as if you'd bought it outright. In the future, if you wish, you can buy more of your home and stop paying rent on that part. Home Stepper is only available on selected homes at certain developments.
Sage Homes are England’s largest provider of affordable new build housing. As a registered provider, they are proud to be helping to address the housing crisis by supplying affordable housing to those most in need via both new shared ownership and rental homes.
Sage Homes have provided over 10,000 homes to new homeowners in the last five years. They are focused on making sure that there are homes available to as many people as possible.
For more information on Sage Homes, visit their website https://www.sagehomes.co.uk/
Discover a shared ownership scheme that makes buying a new Linden Home more affordable. With smaller deposit requirements and lower monthly payments, it could be easier to buy the home you’ve fallen in love with.
You can use savings or a mortgage to buy your share if you are taking out a mortgage to finance your share, you will typically need a minimum 5% deposit. With a larger deposit, you'll be paying lower mortgage payments.
You will be required to pay monthly rent to Sage Homes on the share you don’t own, which will be 2.75% of the unsold value.
If Home Stepper sounds like the scheme for you, then the next step is to check that you’re eligible:
Can I buy any Linden Home using the Home Stepper scheme?
Home Stepper is only available on selected Linden Homes, Those eligible homes will be advertised on our website, but you can check live availability by speaking to our sales consultants.
What share can I buy using Home Stepper?
The share you can purchase is dependent on your individual financial circumstances. You can initially buy up to a 75% share of your home based on how much you can afford.
Can I increase my share?
Yes, you're free to increase your share of home ownership gradually using a process called ‘staircasing’. This means that, over time, you could come to own 100% of your home. In this instance, a transfer of the freehold interest of the house or a transfer of the full leasehold interest of the apartment will be required.
How much rent will I pay?
You will pay rent directly to Sage Homes. The monthly amount you will pay depends on the value of your home and the size of the share that you originally purchased. Any outstanding rent will be paid on the unpurchased share of your home (which is owned by Sage Homes) at a rate of 2.75%.
Will my rent ever increase?
Every year, the amount you pay for rent will be reviewed on 1st April and is usually in line with the year-on-year change to the Retail Price Index (RPI) plus 0.5% in the preceding 12 months. These terms are clearly outlined in your lease before you sign anything, and our sales teams are always available to explain the entire Home Stepper process, should you need them to.
Will I have to make any other regular payments?
You'll have several other payments to make in addition to the rent you pay to Sage Homes. This includes, any household bills, including council tax and utility bills, as well as any maintenance fees and estate charges that apply to your chosen home. You will be expected to pay 100% of these costs.
Do Sage charge leasehold management fee?
Sage Homes charge an annual leasehold management fee, along with a service charge, which you will need to pay directly to them. The leasehold management fee costs £195 per annum and increases each year with inflation, all other costs are clearly set out in your lease.
Does shared ownership mean sharing with another person?
“Shared Ownership” means you will be acquiring a percentage share of the home, with Sage Homes owning the remaining percentage of the unacquired share. You can absolutely live in the home as if you owned it outright (subject to the terms of the lease). While it's possible to purchase a Linden Home with another person, this is not a requirement of the Home Stepper shared ownership scheme. If you do decide to purchase the property with another person then your combined household income shouldn't total more than £80,000 (£90,000 in London).
Will I need to arrange home insurance?
Buildings insurance will be provided by Sage Homes as standard, and payment for this will be included in the service charges. Your IFA will inform you of these costs. However, you will need to arrange your own contents insurance separately.
What happens if I want to sell my home in the future?
You're welcome to sell your home at any time. If you decide to move out, you will need to notify Sage Homes that you wish to sell the property. Sage Homes will then arrange an independent RICS valuation to value your home. The new purchaser(s) will need to meet the Home Stepper eligibility criteria in order to proceed with the sale. Sage Homes then have four weeks from receipt of your intention to sell notice to nominate a purchaser(s) so that other people can use the scheme.
Sage Homes are unable to find a buyer for your home, or if one is found but fails to exchange contracts with you within 12 weeks of your solicitor issuing the draft sale contract (and related sale documentation), you can then put the property up for sale on the open market. If you manage to sell the property this way, on completion of the sale you must repay to Sage Homes the market value of the unacquired percentage share (the percentage share that Sage Homes owned before the sale).
You will be required to pay any fees incurred duringt this process, including the valuation, Sage Homes's fee of 1% of the full market price (to advertise the property for sale), as well as legal and admin fees.
Will I need to pay stamp duty?
Yes, stamp duty is required when using the Home Stepper scheme. This will be reflective of the percentage share of the home you are purchasing, subject to any allowances which may be offset against the Stamp Duty payable. Please speak with your solicitor who will be able to calculate this for you.
Who is responsible for any repairs needed to my home?
All shared ownership customers who purchase a Linden Home under the Home Stepper scheme will have the responsibility of completing and/or paying for repair works that are not covered by the Linden Homes two-year customer service warranty or the NHBC’s 10-year building warranty.
Any white goods such as a fridge and washing machine sold with your home will each be covered by an individual guarantee which you will receive on legal completion.
Can I decorate my new home?
Of course - you're more than welcome to decorate your new home as you wish. However, if you wish to make any significant alterations to your home, such as an extension, you will need to seek permission from Sage Homes/Linden Homes and obtain any relevant planning permission. The exact terms of what alterations you can and cannot make to your home will be outlined in your documentation.
Can I have pets in my new home?
As the provider of the Home Stepper scheme, you will need to contact Sage Homes directly for permission to keep pets at the property.
Can I have a lodger or sublet my Home Stepper home?
The majority of shared ownership leases do not allow you to fully sublet your home. However, Sage Homes will consider granting permission for you to take a lodger on a case-by-case basis, and you will need to contact them directly.
Are there any additional administration fees?
Yes, you can expect additional admin fees during the Home Stepper Process.
It is common for landlords of leasehold properties to be notified of your mortgage lender as the lender will register a legal charge on the title to the property. Sage Homes will need to approve your mortgage offer, in which this process costs £50 (+VAT).
On legal completion, Sage Homes will need to be served a notice of charge (notice of your mortgage lender) in line with the terms set out in the shared ownership lease. The notice of charge fee is £75 (+VAT). The solicitor acting on your behalf will include these fees in your completion statement and these will be payable on the day of completion. If you are buying your share without a mortgage then these fees won't apply.
Consumer code / NHQC
Shared ownership properties are not covered under the Consumer Code or NHQC (New Homes Quality Code).
§Home Stepper is available on selected new build homes only, subject to contract and eligibility criteria. Home Stepper is a new build shared ownership scheme brought to you by Sage Homes. The scheme is subject to individual mortgage lender qualification and affordability criteria as prescribed by Homes England. The scheme is subject to you first obtaining approval from Sage before reserving a new home from us. Eligibility for the scheme may be withdrawn at any time prior to reservation. Sage may also require evidence of your financial ability to proceed with the purchase of a new home from us. Shares from 10% up to 75% of the new home are available. Prices advertised can represent up to a 75% share of the new home. Rent will be charged at 2.75% of the unacquired equity share and is reviewed annually in line with the year-on-year change to RPI in the preceding 12 months plus additional 0.5% and an annual fee of £195, payable monthly. The property will be sold on a shared ownership leasehold basis with a term of 990 years and a buildings insurance contribution is also payable. You will also be liable to pay managing agent costs plus an administration fee payable to Sage. You will be an assured tenant with Sage Homes as the landlord until such time as you staircase to own 100% of the property. In addition, a mortgage approval fee of £60 and a notice of charge fee of £90 will be payable to Sage Homes on completion. More information on eligibility and affordability of using Home Stepper to purchase your new home can be found at www.sagehomes.co.uk. Home Stepper is also subject to the terms and conditions of Sage Homes. Home Stepper cannot be used in conjunction with any other offer, discount, promotion or scheme. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Subject to individual lender terms and conditions. Our usual reservation and sales terms and conditions also apply. Please speak to one of our sales consultants for more details.
References to “we”, “us” or “our” are to the part of the Vistry Group (including Linden Homes, Bovis Homes, Countryside Homes, Drew Smith or one of Vistry’s joint venture companies) from which you are intending to purchase a new home. References to "you” and “your” are to the prospective buyer or buyers of a new home from us.
All images are used for illustrative purposes only and are representative only. They may not be the same as the actual home you purchase and the specification may differ. Images may be of a slightly different model of home and may include optional upgrades and extras which involve additional cost. Individual features such as windows, brick, carpets, paint and other material colours may vary and also the specification of fittings may vary. Any furnishings and furniture are not included in any sale. Please check with our sales consultants for details of the exact specifications available at the development(s) for each type of home and the associated prices.
