CHESHIRE EAST – DISCOUNTED FOR SALE - APPLICATION
Important Information
Low cost housing is property sold at a discounted price, i.e. less than the full market value. It has
been provided to enable people to own their own home, which is suitable for their needs in
circumstances where they could not afford such a home at full market value.
To enable Cheshire East Council to assess whether or not you meet the criteria that determines
housing need and are eligible for this low cost housing, please provide ALL the information
requested on the application form. You will also need to send:
Your most recent 3 months or 8 weekly wage slips for all applicants
Copies of your savings e.g. building society books, bank statements, etc
A mortgage offer in principle
Please understand that a mortgage offer in principle is not a guarantee of approval by the Local
Authority. It is also worth noting the income multipliers used by the Local Authority are:
3.75 x salary plus savings for a single applicant
3.5 x salary plus savings for a joint applicant
Please note that only basic Gross income is used and no overtime or bonus payments are
taken into consideration.
The information you provide will be STRICTLY CONFIDENTIAL, and all evidence of income submitted
with the application will be returned to you as soon as soon as we have processed your application
and made a decision. We will not use the information for any other purposes.
Provisions of the scheme
If you ever sell the property, the new purchaser will also benefit from the discount
The Local Authority puts no charge onto the property
If your lender repossesses your house, the lender will also have to sell the house at the
discounted rate and not at open market value
If you decide to sell your property, please contact the local authority first. You will also have to
provide the authority with a disposal notice
Address of property you are applying for:
PERSONAL DETAILS
Main Purchaser
Joint Purchaser
Surname (Mr, Mrs, Miss, Ms)
Surname (Mr, Mrs, Miss, Ms)
First Name
First Name
Address
Address
Postcode
Postcode
Daytime contact number:
Daytime contact number:
Date of Birth:
Date of Birth:
Time living in the Borough:- _______________________
Time living in the Borough:- _______________________
If you do not live in the town or village that this scheme is located can you please state any connections you have with this area:
- Previous residency or relatives living in the borough (include address and dates of residence)
- Current Employment (please provide address and dates)
Page 1 of 5
Financial Details (SUPPORTING EVIDENCE REQUIRED)
Main Purchaser
Joint Purchaser
Employer (name and address)
Date commenced employment
Occupation
Annual Income (Gross)
£
£
Other Earned Income
£
£
£
£
If you own your own home, what is
the approximate value?
£
£
nd
Source of 2 Income
(e.g. 2nd Job/ Benefits)
Savings,
(Including shares, bank & building society, etc.
Copies must be included with application)
What is the outstanding mortgage?
If you rent you home,
How much is your weekly rent?
£
£
£
£
Please provide your landlord’s name
& address
Reasons for needing to move
Do any of the following apply to you (please tick)
First time Buyer
Overcrowding
Under occupation
Disrepair
Lacking cooking &/or washing facilities
Been served notice or asked to leave
Someone in your household is pregnant
Cannot afford to sustain current accommodation
Need to move closer to relatives for support
Number of Adults and Children that are moving and creating the new household.
Please explain in more detail if you feel you have a need to move that is not covered above:
Page 2 of 5
Declaration
I/We understand that if any false information has been entered this may affect my/our application for
low cost housing.
Signed: …………………………………………. …….
Date: …………………………………….
Signed: ………………………………………………...
Date: …………………………………….
PLEASE ENSURE YOU ENCLOSE THE REQUIRED DOCUMENTS/ EVIDENCE REQUESTED ON PAGE 1
Send the completed application form to:Housing Strategy
Cheshire East Council
Westfields
Middlewich Road
Sanbach
CW11 1HZ
Or Email to:
[email protected]
Office Use Only:
Date:
Assessed by:
Approved by:
Property Address
Full Price
Discounted Price
Client Name/s
Occupation
Primary income
Secondary income
Total
X 3.5 or 3.75
Savings
Total allowed
Mortgage in principal received?
Local Connection
Full Occupancy?
Further comments on local
connection – visits made,
verification checks done?
Current housing situation?
Reason for housing need?
Tenure
sharing
overcrowding
lacking amenities
disrepair
Page 3 of 5
Discounted For Sale Scheme – FAQ’s
What is the Discounted For Sale Scheme?
These are properties on housing developments that are sold by the developer initially with a
discount from the open market value which remains with the property through all subsequent sales.
Who can apply for this scheme?
This scheme is for people whose income is not enough to enable them to buy a property to meet
their needs on the open market, but enough to buy a property at a discounted price.
Applicants for these properties must satisfy our eligibility criteria which can include the following;
however this is only a general guide as different criteria apply for each scheme:
You must not be able to afford the Open Market Value of the property but be able to afford
the discounted price
Be a first time buyer
Key worker
Have a local connection within the Cheshire East Council Boundary ie, working more than
20hrs per week in the area, a resident of Cheshire East Council or have a first line relative
living in the area
The council nominates people for affordable housing units based on its current Affordable Housing
waiting list.
How does the council work out the rate of discount on an affordable home?
Before the first sale of an affordable home, the Council will assess the Open Market Value (OMV) of
each property concerned and calculates the percentage reduction, resulting in an ‘affordable
purchase price’ This percentage off OMV is then written into the title documents. This covenant,
while allowing you to own your own home, protects the property itself by limiting its future sale
price so the next buyer can also afford the property. The Council always puts forward nominee
purchasers.
How much discount is applied to the properties?
This varies depending on each scheme as every home and development is unique – in position, in
size and in value. It all depends on where each property is and how much it would be worth on the
open market at any given time.
Who would own the remaining percentage of the property?
Nobody. This is not a shared ownership scheme you will own the whole of the property and do not
have to pay rent on the remaining part.
The repair, maintenance and insurance responsibility lies entirely with the purchaser.
Owners are not allowed to sublet the property and have to live in the property as his/her sole or
main residence for at least 8 months of the year.
What houses are available?
Most Discount for Sale Schemes are new build and are based mainly on one or two bedroom houses
or apartments, although there are a few three and four bedroom properties in the scheme. The
council requires developers to ensure that the properties meet the Homes and Communities
minimum size standards and requires them to disperse affordable properties across sites where
other properties are being sold on the open market.
Page 4 of 5
There are also re-sale properties which become available when existing owners decide to sell their
affordable home. When this happens, we have specific time limits to approve suitable applicants.
What happens when I want to sell my property?
As the percentage discount stays for the life of the property it can never be sold for the Open Market
Value making it affordable for subsequent purchasers.
You will need to inform the Council of your intention to sell the property and arrange for the
property to be valued by a RICS accredited surveyor. When the valuation has been agreed with the
council, we access possible buyers who meet the criteria for the scheme. If the council are unable to
approve a buyer after the specific timescales, set out in the legal agreements, you may apply to sell
the property on the open market as long as it is offered with the same percentage discount.
Page 5 of 5