Discounted market sale housing is for those who are in housing need and unable to afford to buy a home on the open market.

Who can apply?

You are eligible if all of the following apply:

- Your household income is less than £80,000 per year.

- You cannot afford all of the deposit and mortgage payments for a home that meets your needs.

- You have a right of residence in the UK.

- You have a local connection to North East Derbyshire District Council

Household Income

Wage slips for the last three months must be provided along with details of any other income for every applicant purchasing the property

Calculation of housing need (affordability)

The Council will establish if you qualify by looking at the total available funds that would allow the purchaser to purchase the discounted sale property at the open market value. Total available funds include:

    a. Mortgage in principle

The mortgage in principle offer should be on headed paper from a mortgage advisor or lender regulated by the Financial Conduct Authority

    b. Savings

Savings will be evidenced by statements from all accounts held by those applying for the purchase of a discounted sale property

Current account statements must show all transactions covering two months

    c. Equity

For applicants with a property to sell, equity will be calculated by taking away any outstanding mortgage from the current value of the property. This will be evidenced by an outstanding mortgage statement and a property valuation from an estate agent.

Right of residency

Proof as outlined below must be provided (Appendix 1)

Local connection to North East Derbyshire

A person will be considered to meet the local connection conditions if immediately before taking up occupation of the affordable dwelling one of the household meets one of the following criteria: 

• The person lives in the locality and has done so for a continuous period of at least one year. 

• The person has a family connection in the locality – meaning either a sibling, parent of child. 

• The person works permanently in the locality and has done so for a continuous period of at least a year. 

• The person is an existing social tenant who needs to move to take up an offer of work in the district, as detailed in the Government’s ‘Right to Move’ statutory guidance (DCLG, March 2015) 

• They need substantial care from a relative who has lived in the locality for at least one year, or needs to provide substantial care to a relative who has lived in the locality at least one year. 

Where no perspective purchaser meeting the local connection criteria is identified, the Council will consider applicants who do not meet the required local connection criteria on a case by case basis.

Restrictions:

The purchase of a property solely for the purpose of renting it to another household is not allowed.

A discounted sale property must be the only or principal home of the purchaser. If an applicant owns a property they must provide evidence that the property has been sold.

Summary of proofs required:

• Wage slips for last three months

• Mortgage in principle

• Statements for all bank and savings accounts

• Sale of current property (if applicable) 

• Right of residence (as outlined in appendix 1)

• Local connection criteria

Estimated mortgage repayments:

Based on a Halifax 5-year affordable fixed rate at 5.62%

Product fee - £999

Val fee - £100

Term - 40 years

Cash back - £1,000 for FTBs/£250 for home movers

Appendix 1

Right of residence

One document from:

1. A passport (current or expired) showing that the holder is a British citizen, or a citizen of the UK and Colonies having the ‘right of abode’ in the UK.

2. A passport or a passport card (current or expired), showing that the holder is a national of the Republic of Ireland.

3. A document (current or expired) issued by the Home Office to a family member of an EEA or Swiss citizen, and which indicates that the holder is allowed to stay indefinitely in the UK or has no time limit on their stay in the UK.

4. A document issued by the Bailiwick of Jersey, the Bailiwick of Guernsey or the Isle of Man, which has been verified as valid by the Home Office Landlord Checking Service, showing that the holder has been granted unlimited leave to enter or remain under Appendix EU to the Jersey Immigration Rules, Appendix EU to the Immigration (Bailiwick of Guernsey) Rules 2008 or Appendix EU to the Isle of Man Immigration Rules.

5. A current permanent residence card issued by the Home Office to the family member of an EEA or Swiss citizen.

6. A biometric immigration document (current or expired) issued by the Home Office to the holder which indicates that the person named in it is allowed to stay indefinitely in the UK or has no time limit on their stay in the UK.

7. A passport (current or expired) or other travel document to show that the holder is exempt from immigration control, is allowed to stay indefinitely in the UK, has the right of abode in the UK, or has no time limit on their stay in the UK.

8. A immigration status document (current or expired) containing a photograph issued by the Home Office to the holder with an endorsement indicating that the person named in it is allowed to stay in the UK indefinitely or has no time limit on their stay in the UK.

9. A certificate of registration or naturalisation as a British citizen.

Or, two documents from:

1. A birth certificate issued in the UK.

2. An adoption certificate issued in the UK.

3. A birth certificate issued in the Channel Islands, the Isle of Man or Ireland.

4. An adoption certificate issued in the Channel Islands, the Isle of Man or Ireland.

5. A letter which:

(a) is issued by a government department or local authority no longer than three months before the date on which it is presented;

(b) is signed by a named official stating their name and professional address;

(c) confirms the holder’s name; and

(d) confirms that the holder has accessed services from that department or authority or is otherwise known to that department or authority.

6. A letter which:

(a) is issued no longer than three months before the date on which it is presented;

(b) is signed by a British passport holder who is or has been a professional person or who is otherwise of good standing in their community;

(c) confirms the holder’s name;

(d) states how long the signatory has known the holder, such period being of at least three months’ duration, and in what capacity; and

(e) states the signatory’s name, address, profession, place of work and passport number.

7. A letter issued by a person who employs the holder no longer than three months before the date on which it is presented, which indicates the holder’s name and confirming their status as an employee and employee reference number or National Insurance number and states the employer’s name and business address.

8. A letter issued by a police force in the UK no longer than three months before the date on which it is presented, confirming that the holder has been the victim of a crime in which a document listed in List A (Group 1) belonging to the holder has been stolen and stating the crime reference number.

9. An identity card or document issued by one of Her Majesty’s forces or the Secretary of State confirming that the holder is or has been a serving member in any of Her Majesty’s forces.

10.A letter issued by Her Majesty’s Prison Service, the Scottish Prison Service or the Northern Ireland Prison Service confirming that the holder has been released from the custody of that service no longer than six months before the date on which that letter is presented and confirming their name and date of birth.

11. A letter issued no longer than three months before the date on which it is presented by an officer of the National Offender Management Service in England and Wales, an officer of a local authority in Scotland who is a responsible officer for the purposes of the Criminal Procedure (Scotland) Act 1995 or an officer of the Probation Board for Northern Ireland confirming the holder’s name and date of birth and confirming that the holder is the subject of an order requiring supervision by that officer.

12. A current licence to drive a motor vehicle granted under Part 3 of the Road Traffic Act 1988 (to include the photocard licence in respect of licences issued on or after 1st July 1998) or Part 2 of the Road Traffic (Northern Ireland) Order 1981 (to include the photocard licence).

13. A certificate issued no longer than three months before the date on which it is presented, by the Disclosure and Barring Service under Part V of the Police Act 1997, the Scottish Ministers under Part 2 of the Protection of Vulnerable Groups (Scotland) Act 2007 or the Secretary of State under Part V of the Police Act 1997 in relation to the holder.

14. A document, or a screen shot of an electronic document, issued no longer than three months before the date on which it is presented, by Her Majesty’s Revenue and Customs, the Department of Work and Pensions, the Northern Ireland Department for Social Development or a local authority confirming that the holder is in receipt of a benefit listed in section 115(1) or (2) of the Immigration and Asylum Act 1999.

15. A letter which:

(a) has been issued no longer than three months before the date on which it is presented;

(b) has been issued by a public authority, voluntary organisation or charity in the course of a scheme operated to assist individuals to secure accommodation in the private rented sector in order to prevent or resolve homelessness; (c) confirms the holder’s name; and

(d) states the address of a prospective tenancy which the authority, organisation or charity is assisting the holder to obtain.

16. A letter which:

(a) has been issued by a further or higher education institution in the UK;

(b) confirms that the holder has been accepted on a current course of studies at that institution; and

(c) states the name of the institution and the name and duration of the course.