Open Market Shared Ownership
Open Market Shared Ownership (OMSO) is an affordable housing initiative which aims to give local residents the opportunity to get a foot on the home ownership ladder. It is operated by the Council with Broxbourne Housing Association (BHA).
Applicants are able to select any one or two bedroom property available for sale on the open market in Essex, Hertfordshire, or Epping Forest’s neighbouring London boroughs. The chosen property can have a value up to £210,000. To qualify for the scheme, applicants need a household income of between £25,000 and £60,000 per annum.
BHA will then purchase the chosen property, and enter into a shared ownership arrangement with the applicant (sometimes referred to as "part buy – part rent"). This will provide them with a 50% share in the home they have chosen. The applicant will pay an affordable rent on the remaining 50% share of the property, and can purchase further shares in stages. The annual rent is equivalent to 2.5% of the value of the property that is held by BHA.
For example, the value of BHA's share in a property bought for £180,000 would be £90,000. So the resident would pay an annual rent of 2.5% of £90,000 costing £188 per month. Eventually the residents can own their homes outright.
Most shared ownership homes are on specific new developments, but OMSO is different because the property is purchased on the open market. At the moment we are only offering the scheme to our council tenants, and applicants on the Council's Housing Register who live in the District. Priority is given to tenants, since this not only helps them into home ownership, it also frees up accommodation which can then be let to families on the waiting list.
Broxbourne Housing Association is managing the Open Market Shared Ownership scheme so if you are looking to own your own home and think this Scheme could be for you, please register your interest with BHA.
You can send an email to firstname.lastname@example.org or phone BHA on 01992 453700.
BHA is a not-for-profit organisation that manages 4,000 properties following a housing stock transfer from Broxbourne Borough Council. The cost of BHA buying the properties is funded through a combination of a commercial loan from a bank and an interest free loan from the Council. Any increase in property prices will benefit both the Council and BHA, when the properties are fully purchased and the investment is returned.