The shared ownership scheme will allow tenants to part-buy and part-rent their council home by purchasing a minimum share of the property - 25%, up to a maximum share of 75%. Further shares can be brought gradually until a tenant owns their own home outright.
The new lease will be subject to discounts similar to right to buy.
Tenants who had their tenancies before 18 January 2005, and who have a tenancy of more than two years will be allowed a 70% discount for a flat and 60% for a house. New tenants after 18 January 2005 with a tenancy of more than five years will be allowed a maximum discount of 70% for a flat and 60% for a house. These discounts are subject to a£26,000 maximum.
The purchaser will be responsible for day to day repairs with the housing department retaining responsibility for capital, structural repairs and improvements for which a charge will be based on the percentage of ownership. The purchaser will pay a reduced rent on the remaining share of their property which will reflect the repair responsibilities for the portion of the property which the council own.
John Lines, cabinet member for housing said: 'This new scheme will help those tenants who cannot afford to buy their home outright and provide yet another choice for Birmingham residents to step on the ladder to home-ownership.'
Shared-ownership tenants who wish to resell their share within 10 years must offer first refusal at full market value to the city council.
PR Portfolio Housing
Reference Number 7541
Press contact Marcia Wynter on 0121 303 3501
Issue Date 6 June 2005