Co-ownership scheme used to run on first come, first served basis. However, monthly quotas were introduced in May 2009 for all new applications and a draw system was added into the mix in June 2009.

Now all applications received in any one’s month qualifying period will go into the pot and will be drawn at random to fill the quota after the application deadline.

• How does the quota work?
  
• How does the draw work?
  
• What else do I need to know about applying?
  
• What are the costs involved?
  

How does the quota work?

Quota numbers vary from month to month, depending on how many applicants the Northern Ireland Co-Ownership Housing Association (NICHA) can accommodate. For example, May 2009 quota was set at 55 applications, but the following month was increased to 65.

Monthly quotas are announced in advance on the website and are given to all registered estate agents and financial advisers. To find out the status of the most recent application quota, visit http://www.co-ownership.org/information/home-buyers/quota/. 

Back to top

How does the draw work?

You will need to submit your application to the NICHA during a qualifying period in any given month. Qualifying periods will be set in advance and announced on the NICHA’s website.

It will no longer matter if you are the first to lodge an application for that month’s quota, i.e. your application will not be considered on first come, first served basis.

All applications received during a qualifying period will go into the pot and will be drawn at random to fill the month’s quota. The draw will happen shortly after the application deadline.

All applications will be drawn at random. After the draw, the NICHA will then examine the applications to make sure they are complete, until their number reaches quota for that month.

Keep an eye on NICHA’s website for updates on upcoming qualifying periods and draw dates. Alternatively, you can call their freephone on 0800 333 644.

Back to top

What else I need to know about applying?

You will need to find the property you wish to buy before applying. Tell the estate agent or owner of the property that you want to buy through co-ownership. The estate agent or owner may help you complete the application form.

You can download the application form from www.co-ownership.org or NICHA can send you one by post. You will then have to submit the completed application form to NICHA during a qualifying period, in order to go forward into the draw.

If your application is drawn and accepted, you will have to arrange a mortgage to cover the part of the property you are going to buy. The remainder of the process of purchasing the property is the same as buying a home normally. You will have to sign a Co-Ownership agreement to finalise the purchase of your home.

Back to top

What are the costs involved?

Co-Ownership aims to keep costs down compared to buying a house on an open market. You have to repay mortgage on your share of the equity and pay a monthly rent for NICHA’s share, but when the two amounts are combined the total is less than a single large mortgage payment.

Mortgage/Rent costs

Your mortgage payments will usually be considerably lower than repayments of a conventional mortgage, as you have borrowed a smaller amount of money.  

Your rental amount will depend on your equity share and the share financed by NICHA. The larger your share, the lower your rent is.

Rent is set to be affordable, usually at 2.5% of the value of NICHA’s contribution in the purchase of your property. This works out at approximately £2.08 a month per every £1000 NICHA’s contributed.

Co-Ownership rents are due on the first day of each month in advance.

Fees

You will have to pay fees when you apply for Co-ownership housing. You must send £250 with your application form to cover valuation (£40) and legal fees (£210). You may be able to refund some of the money after your application is processed.

Legal Package fee

NICHA offers a Legal Package to potential buyers, where both parties use the same solicitor. NICHA pays the largest portion of legal fees, while you cover the expenses for the time taken by the solicitor when working on your behalf. You can ask the solicitor for an assessment of costs involved before you decide to accept the offered package.

If your application is unsuccessful, NICHA will refund your Legal Package fee as soon as possible. If your application is successful, but you decided not to use the Legal Package, NICHA will refund your Legal package fee after completion.

You can choose not to use the package offered by NICHA. However, you will still have to arrange your own solicitor and negotiate the fees directly. This could work out more expensive.

Valuation fee

The valuation fee is not refundable. NICHA arrange a valuation on the property to check that it is suitable for Co-ownership. This is similar to a homebuyer's report. NICHA will give you a copy of the report.

A valuation report is not a structural survey. It is usually a good idea to get a licensed surveyor to carry out a structural survey.

Back to top