FAQs

Here are some questions that you often ask us. However, if you need a more detailed explanation about anything, please contact us.
 

What is FIRST STEPS?

Metropolitan Home Ownership (MHO) and L&Q are the two HomeBuy Agents who operate in London. Together we work in partnership to provide a one-stop shop for registration and application for all affordable homes across London. This partnership is called FIRST STEPS to Home Ownership in London. To view the web site go to www.firststepslondon.org.

What is the process of registering for these properties?

Once you have submitted your FIRST STEPS application form, we will send you a letter detailing what you are eligible to buy. Equipped with this information you can then begin your search of affordable homes across the capital. If you are predominately interested in new build homes, you can begin your Property Search now.

What happens when we want to sell our share?

MHO can help you sell your share on to someone else who is eligible for affordable home ownership. For more information contact our Resales department on 020 3535 2555.

Can we increase the share that we own over time and if so when can it be done?

Most part buy, part rent leases allow leaseholders to buy a further share in their home, until they own it completely and this process is known as staircasing. If a 100% share is purchased then no rent will be payable.

Once you have completed a further staircasing, your rent will be reduced, and this is calculated with respect to MHO’s remaining percentage after staircasing. All service charges will remain. Once you have completed the final staircasing to 100%, your rent and management fee will completely cease and all service charges will remain.

The main advantages of Staircasing are that you will eventually own the full 100% share of your property and your rent charge will completely cease. On 100% ownership MHO relinquishes its equity share in the property.

How long do I have to wait for my application to be processed?

Once we have received your application we will process it within 4 working days. We may need to contact you for more information before we can let you know if you are eligible for Shared Ownership but we will always contact you within 4 working days.

How much money am I eligible for to purchase on the open market with Open Market HomeBuy?

It is not possible to comment on the amount a person may be eligible for without knowing details of income, expenditure, debts and savings. Once your application has been submitted through FIRST STEPS you will be notified of the figure you are eligible for.

How do I contact other Housing Associations?

The FIRST STEPS website enables you to view properties from all Housing Associations across London.

Can I only apply for properties in the borough I live in?

For new build properties each development will have its own funding stream which will determine who is eligible to buy there. In most cases you will have to either already be living or working in the borough you are applying in. In a few cases homes can become available to other applicants outside the borough so it is worth registering an interest even if you do not meet the initial eligibility criteria.

What is Sharia mortgage?

A Sharia mortgage acknowledges that conventional mortgage loans are interest based, which is in conflict with Islamic Principles, and therefore disallowed by Shariah. If this is something you are interested in please contact us for more information.

How long does the whole process take?

If you are buying a home on the open market the process can take up to 4 months. The process of purchasing a new build property can take as little as 28 days, however if building work has yet to be completed on the development this may lengthen the process.

How much will the monthly repayments be?

Monthly repayments will vary depending on the purchased property value and share purchased. For example a property valued at £170,000 at a 25% equity share means your monthly mortgage will be approximately £260, your monthly rent will be approximately £320.

Will I need a deposit?

Currently lenders usually require a minimum deposit of 10% of the value of the property you purchase. This varies between mortgage lenders at the time you purchase, ask your sales officer or consult your IFA should you be in any doubt. You must also have savings to cover the cost of stamp duty (if applicable), legal fees and other costs involved in buying a home (such as removals, storage etc.). For Equity Loans products, you will usually need a deposit of 5% but, again, any deposit requirement will depend upon mortgage deals available from mortgage lenders at the time you buy.

Am I eligible?

Eligibility varies across products and developments. See Your Options for more information.

What is a key worker?

• Key Workers are defined as:
• NHS Staff
• Teachers
• Metropolitan Police
• British Transport Police
• Prison Service Staff
• Probation Service Staff
• Fire & Rescue Service Staff
• Some Local Authority Staff
• Ministry of Defence Staff (key worker status only for New Build HomeBuy and Intermediate Rent)

Should I go to my bank right now to arrange a mortgage, so I’ll be ready as soon as I find a property?

We advise you to wait to speak to one of our independent financial advisors before making any financial commitments.

Do the Housing Associations contact me or do I contact them?

As with any property search, it is down to you to contact any Housing Associations that operate in the area you are looking to move to especially if you want to ensure a reservation before the properties sell out. However, once you have submitted a FIRST STEPS application and are registered on the database, Housing Associations can then request your details and contact you with relevant property information.

I work for MHP, can I buy a home from MHO?

It is Metropolitan Housing Partnership (MHP) policy not to sell or let intermediate housing products which are funded or part-funded by MHP to our staff. Staff can apply for intermediate housing products which are not MHP funded.

We do this to ensure that we deliver publicly funded housing products and services effectively, and with a minimal risk of conflict of interest.