Home Stepper

Depending on your individual financial circumstances, you can start by buying up to a 75% share of your home. This can be tailored based on your level of affordability.

You have the option to increase your share over time. This is done through a process called ‘staircasing’, so you could eventually own 100% of your home. When that happens, there'll need to be a transfer of the freehold interest of the house or a transfer of the full leasehold interest of the apartment/flat.

You'll pay rent to Sage Homes. The monthly amount will be dictated by the size of your share and the value of the home you choose. You'll pay rent on the unpurchased share of your home (owned by Sage Homes) at a rate of 2.75%.

Rent will be reviewed on 1st April each year. Generally, any change will equate to the year-on-year change to the Retail Price Index (RPI) plus 0.5%. You can view these terms in your Home Stepper lease and our Sales Consultants will be happy to explain anything further.

There will be other payments on top of the rent you pay to Sage Homes. You'll need to pay 100% of your household bills, including:

• Council tax
• Utility bills
• Maintenance fees
• Estate charges

The amount you pay will vary depending on personal consumption and the home you choose.

You'll pay an annual leasehold management fee and service charges directly to Sage. The leasehold management fee is £195 per annum and increases each year with inflation. All the Home Stepper scheme terms and all other costs can be found in your lease.

“Shared ownership” means you're acquiring a percentage share of a home. In this instance, Sage Homes will own the remaining percentage of the unacquired share. You can live in the home as if you own it outright (subject to the terms of the lease).

You can purchase a Bovis Home with another person, but this is not a requirement of the Home Stepper shared ownership scheme. Note that your combined household income must not exceed £80,000 (£90,000 in London) if you're purchasing the property with someone else.

Buildings insurance will be provided by Sage Homes and payment for this will be included within the service charges. You can find out the exact amount by checking with your IFA. Contents insurance will need to be arranged separately.

You can sell your home whenever you like. To start the process, you'll need to let Sage Homes know. The sale value of your home will then be determined by an independent RICS valuation. Any purchaser(s) will need to be eligible for the Home Stepper scheme. After receiving your intention to sell notice, Sage Homes has four weeks to nominate a purchaser(s) (Sage Homes nominee). This allows other people to benefit from the scheme.

If Sage Homes fails to secure a nominee that exchanges contracts with you within 12 weeks of your solicitor issuing the draft sale contract (and related sale documentation), you can sell your home on the open market.

Assuming you progress to selling your home on the open market, you must repay the market value of the share Sage Homes owned before the sale. This must be done on completion of the sale.

Other fees you'll need to pay include:

• Valuation fees
• Sage’s fee of 1% of the full market price (to advertise the property for sale)
• Legal fees
• Admin fees

You'll need to pay stamp duty when looking for new build homes under the Home Stepper scheme. This will be determined by the percentage share of the home you're purchasing, taking into account allowances that may be offset against the stamp duty payable. Your solicitor can calculate this for you.

Any repair works that aren't covered by the Bovis Homes two-year customer service warranty or the NHBC’s 10-year building warranty must be completed and/or paid for by you.

White goods (e.g. fridge, washing machine) that are sold with your chosen home will be covered by an individual guarantee. This will be given to you on legal completion.

Your new home can be decorated however you like, but you'll need to ask for permission from Sage Homes/Bovis Homes and seek relevant planning permission if you plan to make significant changes like building an extension, for example.

The documentation you receive upon completion will detail what alterations you can and cannot make to your home.

Because Sage Homes is the provider of the Home Stepper scheme, you'll need to ask for their consent. You can contact them directly to do this.

Many other shared ownership leases prohibit fully subletting your home, but Sage Homes may consider granting permission for you to take a lodger. To instigate this, you'd need to contact Sage directly.

There are additional fees you will need to be aware of.

Most landlords of leasehold properties will be made aware of your mortgage lender. This is because the lender will register a Legal Charge on the title to the property. Sage Homes will need to approve your mortgage offer, which comes with a charge of £50 (+VAT).

On top of this, Sage Homes will need to be served a Notice of Charge (notice of your mortgage lender) in accordance with the terms set out in the lease. The Notice of Charge fee is £75 (+VAT).

The solicitor acting for you when purchasing the property will include these fees in your completion statement and you'll pay them on the day of completion. However, neither of these fees will apply if you're buying your share without a mortgage.

The Consumer Code and New Homes Quality Code (NHQC) do not cover shared ownership properties.