Terms and conditions and guidance notes, financial and purchasing, and things you need to know
- Properties for Shared Ownership are independently valued by RICS-Registered surveyors in-line with local market conditions.
- Share prices quoted on our website and in our advertising are set as an example of the share you can purchase, but in some cases can be agreed at more or less than advertised in-line with either your affordability or factors set by Sovereign, the Local Authority or Homes England’s Capital Funding Guide.
Before you reserve your new home
- The marketing literature provided to you is for guidance purposes only and the tenure of any of Sovereign’s properties neighbouring your new home may, at any time, be subject to a change i.e. from Shared Ownership to a rented tenure.
- CGIs may depict typical Sovereign Living properties at the development. Photography of interiors are for illustration purposes only and may not reflect actual interior finishes. Any reference to deposit amounts is calculated on a mortgage lender with a 5% deposit requirement over a 25 year borrowing term. 'From' prices usually refer to a 40% share price of the lowest priced property for sale. There is also a discounted monthly rent payable, as well as a service charge.
- You need to inform us if you have any pets, as pets are not allowed under the terms of the Shared Ownership lease of a flat or maisonette [without specific consent]. Usual domestic pets are only permitted in houses.
- You will have been financially assessed by a member of our independent panel of Financial Advisors using the Homes England affordability calculator. The calculator assumes a mortgage rate of up to 6.5%. The monthly mortgage payment, monthly rent payable on the share you do not own and any other committed monthly payments you may have i.e. car loan, credit cards, must be 45% or less of your net household income in order for us to agree that you can proceed.
- The properties are valued by an independent chartered surveyor every 3 months. If you are approved to reserve a property, to hold the price you will need to exchange contracts by the Deadline Date. This also applies to any properties purchased off plan. After that point, if the property price is adjusted, you will be required to pay any increase in value and your application will be reassessed. If your application then doesn’t meet the financial requirements necessary to meet the new value of the property, you will be unable to purchase the property. In any event Sovereign reserves the right to withdraw the reservation if contracts are not exchanged by the Deadline Date.
- If you have received a county court judgement (CCJ) registered against you, please declare this when you are obtaining mortgage advice. The CCJ(s) must have been satisfied and you must be able to provide a certificate of satisfaction.
- If you do not require a mortgage, we will need the following documents to verify your earnings:
- 3 months bank statements for every account
- 3 months payslips
- Further credit checks may be required
- Should your credit check show missed payments or arrears, and Sovereign are not satisfied with your ability to make your monthly rental payments, we reserve the right to withdraw an offer of sale
- Incentives may be available on certain plots on select New Build developments only and will be linked to the successful completion of your sale
- Where Sovereign do not work with the local authority to allocate properties, we use our own allocation process, details of which are below. To apply for a property a customer must:
1. Complete an initial application form with Sovereign.
2. When the development is open for applications, contact one of Sovereign’s panel of financial advisors, who will conduct a financial assessment using the Homes England sustainability calculator and provide this to Sovereign.
- If your application is successful, and to fully reserve the agreed property, you will be required to complete the online reservation form which will include advising Sovereign of your solicitor or conveyancers details acting on your behalf, as well as your mortgage/financial advisors’ details. You will also be required to pay a non-refundable reservation deposit of £250.
- We have an Anti Money Laundering procedure, and several ID checks to make as part of the purchase of a property - full details of this process can be seen HERE
During your purchase
- You will need a solicitor. Sovereign offers an approved panel of Solicitors on our website, all of which have experience dealing with Shared Ownership purchases. Please note we cannot recommend a solicitor to you and you are welcome to use another solicitor not listed on our panel. We strongly suggest that you obtain full written quotes before instructing your chosen one. In addition to the conveyancing charge, disbursements may be charged i.e. searches, telegraphic transfers of money, land registry etc. Conveyancing charges will differ from one solicitor to another. You will be asked to supply funds for your searches immediately; most other costs will be payable on completion of your purchase. You will also have to pay an Engrossment fee to our solicitors for preparing the lease and a Notice fee to Sovereign for registering your mortgage. Please contact any of the firms listed and they would be happy to provide a quotation for your purchase.
- Your mortgage needs to be from a recognised high street mortgage lender. Before receiving advice from an IFA you should ask if there is a charge. The amount of your mortgage should not exceed the percentage of the property you are buying. We will not accept a mortgage guarantor.
To ensure your mortgage application is not delayed, please ensure that you are registered on the local electoral register. You can find the contact details for your local office on this website: http://www.aboutmyvote.co.uk/default.aspx
- Please provide a copy of your mortgage offer as soon as available. You must notify Sovereign should the financial details of your application change following your initial affordability assessment. Changes can result in your application no longer meeting shared ownership criteria. Please speak to your sales consultant for further information.
- The property will be reserved for a maximum period of 6 weeks (or until your exchange of contracts deadline date). Your exchange deadline date will be issued when the draft contract documentation is issued to your solicitor. In the event that contracts have not been exchanged by the deadline date we reserve the right to withdraw the reservation. We will proceed to remarket the property which may be result in a difference in the price.
- You have the right to withdraw from your purchase at any time before contracts are exchanged. Please note that if you withdraw from the purchase for any reason whatsoever before contracts are exchanged, or if you fail to exchange contracts by the deadline date, then you agree that we will retain the sum of £200 from your reservation deposit towards our administration costs and legal expenses incurred.
- Provided the matter proceeds to exchange of contracts and completion, the £250 reservation deposit will be used in part payment of the final price that you pay for your new home. Until you exchange contracts, your purchase is subject to contract.
- You will be responsible for all costs incurred whether or not the matter proceeds to exchange of contracts and completion including all costs relating to your mortgage arrangements and to extending your mortgage offer.
- Lender product fees can be added to your mortgage up to the value of £1500. For product fees over this amount you will need to pay your lender in advance, as they will not be accepted as part of your borrowing.
- When a home is purchased off plan, Sovereign are fully reliant on the developer delivering the property on the date of proposed handover. Delays on New Build developments are common, so please ensure you are prepared should the date of proposed handover slip. Your Sales Consultant will keep you fully informed of any delays and site progress throughout your sale.
- Where construction of the property is not finished by the exchange deadline date we will require contracts to be exchanged with completion on 10 days’ notice. Where the property is finished by the exchange deadline date we will exchange contracts with a fixed completion date and we will require you to complete no later than 10 days after contracts have been exchanged.
- In the majority of cases Sovereign will have contracted to purchase the property from a developer. In some cases the legal transfer of ownership to Sovereign and registration of title at the Land Registry may not have been completed at the time of reservation or by the deadline date. We will still require you to exchange contracts by the deadline date. The details will be set out in the contract pack sent to your solicitor.
- The special conditions of your purchase are detailed on the online reservation form. Upon signing the reservation form and paying the reservation deposit you are agreeing to the special conditions.
- The first month’s rent plus any apportionment due when you move in will be collected by your solicitor on completion. Please note you could be asked to pay a maximum of 2 months’ rent in advance, depending on your completion date.
- If you have reserved your new home off plan, all viewings will be subject to the developer’s approval to grant safe access to the site. The timescales given for viewing arrangements may be subject to change. You will still be required to exchange contracts on or before your 6 week exchange deadline, even in the eventuality that an internal viewing is not possible.
- We strongly advise you not to make arrangements to vacate your present accommodation. You must seek advice from your solicitor before you do so to ensure that contracts have been exchanged and a date has been fixed for completion of your purchase.
- Stamp Duty Land Tax (SDLT) - For information and advice please speak directly with your solicitor or contact HM Revenue & Customs.
- Service Charges may apply to some developments, an estimated breakdown is available.
- For data protection, if you are purchasing as a single applicant, please advise us in writing of anyone you wish us to liaise with on your behalf if you are not available.
Early bird reservation terms and conditions
- Following your conversation with your sales consultant, you’ll be aware this is an early bird reservation only and not a formal reservation. The property sale is not guaranteed until further checks have been carried out at the point of formal reservation.
- Sovereign are also unable to confirm any specification of the property at the point of an early bird reservation other than the bedroom numbers at the property and type of property.
- Please be advised that any changes to your financial circumstances (e.g. taking out a loan) may impact on your affordability re-assessment at the point of formal reservation, which could result in your application being rejected.
- Please be aware for the avoidance of any doubt, that Sovereign reserve the right to withdraw the early bird reservation at anytime, or to not grant a formal reservation if you do not disclose any changes which negatively affect your affordability re-assessment or any other pre-reservation check prior to an early bird reservation or should you fail any affordability re-assessment or pre-reservation checks after an early bird reservation is taken.
- The early bird reservation is valid for 12 months from the date of the confirmation email.
- We have an Anti Money Laundering procedure, which includes ID and Financial checks to make as part of the purchase of a property - full details of this process can be seen HERE, we will require this information upon formal reservation.
- The properties are valued by an independent chartered surveyor every 3 months. If the values change between early bird and formal reservation, the new financial assessment will be based on the latest values received. If your application no longer meets the financial requirements necessary to meet the new value of the property, you will be unable to purchase the property and Sovereign have the right to withdraw your application.
- In some cases, a local connection is required to be approved for a property, should your local connection change prior to formal reservation, Sovereign reserve the right to withdraw your application.
- You will have the right to cancel your early bird reservation within 14 days of the email confirmation and receive a full refund of your £150 deposit.
- You will be required to pay a non-refundable early bird reservation deposit of £150, with the remaining £100 to be paid on formal reservation.
- Please note that if you withdraw from the purchase for any reason whatsoever following the 14-day cooling off period, then you agree that we will retain the full amount of £150 of your deposit towards our administration costs. However, if your financial assessment fails on the formal re-affordability check, Sovereign will refund you £50 of your £150 deposit.
After you’ve moved in
- Rent is payable on the share you are not purchasing and will be debited from your account on the 1st of each month. You will be asked to complete a Direct Debit form on completion.
- If you can foresee or experience problems in paying the rent and/or mortgage you should notify Sovereign immediately. Late payment of rent or mortgage is serious as this will accrue arrears and could result in your home being repossessed.
- The rent will increase annually on the 1st April each year. The increase will be based on the Retail Price Index figure for the September prior to the increase plus 0.5%.
- Building insurance will usually be covered by Sovereign Housing Association and is in addition to your rent. A summary sheet will be provided to you on completion. Sometimes insurance may be covered by an external management company and your solicitor will be given details. We strongly advise not to store items in the loft space as this may invalidate your insurance.
- Alterations or additions are very rarely allowed to a shared ownership property. You must always ask the Leasehold Team at Sovereign for permission if you are thinking about making any. You should be aware that there is no guarantee that the amount you spend on improvements will be reflected in an increased value for your home and Sovereign may share any increase in value on a sale of your share
- Leaseholders have full responsibility for maintenance and repairs to the home. The developer will normally have a six or twelve-month aftercare policy covering any building defects. The six or twelve month period begins from the date the properties were handed over to Sovereign. This may be earlier than the date Sovereign hands the property to you.
- Under the terms of your lease Shared Owners may not rent or sub-let their rooms.
- Your lease allows you to borrow extra money against your property only to;
- Change or transfer the names on your mortgage
- Buy more shares in your property
- Make essential repairs to your home that are not improvements
- You may not re-mortgage to pay off debts or to buy goods.
Buying extra shares
- You can buy further shares at any time following completion, this process is called ‘Staircasing’. A RICS (Royal Institute of Chartered Surveyors) registered valuation report is required in order to agree the open market value of the property at the time of the request and you are responsible for the cost of this valuation. Share will be calculated in relation to that valuation. Once you purchase additional shares your rent will decrease as you own more of the property. The rent % calculation however will still remain the same. You can buy a minimum of 10% each time you buy further shares. Administration and legal costs will apply. In some cases however, your lease will cap the maximum share you can purchase through Staircasing.
- If you complete the Staircasing process up to 100% and then decide to sell, you must first offer the property back to Sovereign at the current RICs market value as Sovereign can choose whether or not to nominate a buyer or buy the property back. This condition applies for 21 years following a 100% staircase.
Selling your home
If you choose to sell your share of the property, in accordance with your lease, Sovereign is allowed up to eight weeks to find and approve a suitable purchaser. The purchaser will need to be financially assessed in the same way you were when you purchased your home. This may mean that Sovereign will not be able to approve all interested parties. If a purchaser is not found within this timescale you can sell the property on the open market at the valuation price through an Estate Agent. Administration and legal costs will apply.
Right to Buy
We may share your National Insurance number in order to prevent and investigate tenancy and right to buy applications fraud.
General terms and conditions
Sovereign makes every effort to ensure that the material contained in this website is accurate and up-to-date. However, we cannot warrant the accuracy and completeness of such material.
We make every effort to ensure that links from this website to third party websites are relevant, current and appropriate. However, we do not accept liability in connection with any third party websites which may be linked or accessible through our websites and we do not endorse or approve the contents of any such site.
Any data you provide to us with be held internally, and may be shared with our approved 3rd party partners.
Any data submitted via our online forms is not secure and we cannot guarantee that information submitted will not be intercepted or modified, or that it will be received safely.
We make every effort to ensure that our systems and website are free from viruses and harmful files. However, the material accessed through the use of our web pages is obtained entirely at your own risk and you will be responsible for any resulting problems or damage to software or computer systems and/or any resulting loss of data.
In no event will Sovereign be liable for any direct, indirect, special, incidental, or consequential damages arising out of the use of the information held on the site.
Nothing on this website shall be construed as an offer or the basis for a contract between us and you or any other party.
Information on this website is provided for information purposes only, you should not rely on it to make any decision without either taking professional advice or verifying the accuracy of the information provided.
The materials on our website are owned by us and we reserve copyright and all other rights in them. Our name and any image or logo we use to identify ourselves are our trade marks and may not be reproduced without our permission in writing.
You may download, print and store information from this website while acknowledging our copyright in it.
Our website and these terms and conditions shall be governed by English law and subject to the exclusive jurisdiction of the English Courts.
Sovereign Housing Association Limited is a charitable Registered Society under the Co-operative and Community Benefit Societies Act 2014, registered with the Financial Conduct Authority no. 7448 and Homes England. Registered office: Sovereign House, Basing View, Basingstoke RG21 4FA .