Affordable home ownership
A blanket term used to cover a range of home ownership options where Government funding is used to help bridge the gap between affordability and house prices. Also referred to as ‘intermediate market housing’, affordable home ownership products include Shared Ownership, Help to Buy and past equity loan and shared equity initiatives designed to help working households into home ownership.
A ‘charge’ or ‘legal charge’ is a lender whose financial interest in your home is secured legally. The first charge will normally be your main mortgage lender, the second charge will be your equity loan provider. Charges are ranked in order of who gets repaid when you sell your home.
Deed of Postponement
A deed of postponement is a legal document which temporarily removes legal charges from your property. For example, when you remortgage with a new mortgage lender (the ‘first charge’), a Deed of Postponement will lift charges from your deeds so that the new charging arrangements can be made.
‘Developer Lender’ is a term used to describe house builders participating in schemes such as Help to Buy, a housing association or a private house builder could be included in this. ‘Private developer’ is more commonly used to describe house builders from the private sector (such as Crest Nicholson or Barratt Homes).
A DS1 is a legal form which is used to remove ‘charges’ from the deeds of your home. Your equity loan (such as HomeBuy Direct) will be secured as a ‘charge’ on your home, if you pay off your equity loan, a DS1 form is used to remove this charge.
Formerly the national regeneration agency for England. It was a non-departmental public body responsible for funding and directing large-scale regeneration work. English Partnership funded the London Wide Initiative and the First Time Buyers Initiative. On 1 December 2008 English Partnerships closed and its powers were passed to the Homes and Communities Agency.
An equity loan is a home loan whose value represents a percentage share of the value of the home. When the loan is repaid, its original percentage share will be recouped by Target on behalf of its funders. Put simply, if your equity loan was worth 20% of the value of your home at the time you bought, when you pay off your equity loan or sell up, you will repay at 20% of the value of your home at the time of repayment/ selling.
The Greater London Authority, funder and regulator of affordable housing in London.
Help to Buy Agent
A Help to Buy Agent is a regional organisation, usually a housing provider, who provides information and a route to applying for Shared Ownership, Help to Buy and other low cost home ownership and renting options.
Homes and Communities Agency
The funder and regulator of affordable housing in England. Target provide post sales services for home owners who bought a home with a Government funded equity loan or shared equity product on behalf of the Homes and Communities Agency.
A term commonly used to describe a ‘Registered Provider of Social Housing’, organisations including housing associations and some developers who are funded and regulated by the Homes and Communities Agency (or, in London, by the Greater London Authority).
‘Private developer’ is a term used to describe house builders from the private sector (such as Crest Nicholson or Barratt Homes).
A ‘Registered Provider of Social Housing’; organisations including housing associations and some developers who are funded and regulated by the Homes and Communities Agency (or, in London, by the Greater London Authority).
‘Shared Equity’ is a term used to describe equity loans or land-based equity provision where more than one funder is involved. For example, with HomeBuy Direct, the equity loan was funded 50:50 by the housing provider and Government funding.