Is Part Buy, Part Rent available at all Keystone developments?
Not yet. This scheme is currently only available at selected Keystone developments. Please check with the on-site sales team for more information.
What proportion of the property must I purchase?
Our scheme starts at 40% ownership, but there are options to increase this over time by buying 10% increments – something known as staircasing.
Who owns the remaining share of my property?
Keystone will pass the management of your home to Longhurst Group who will own the remaining share of your property and will be your landlord, granting a lease for 125 years.
What costs will I need to pay upfront?
There are some one-off costs associated with your home purchase that you will need to plan for.
- A reservation deposit, which is later deducted from your final purchase
- Solicitor’s fees
- Government property tax, known as Stamp Duty Land Tax (SDLT) in England or Land Transaction Tax (LTT) in Wales.
Will the SDLT or LTT rate be lower on a Part Buy, Part Rent property?
While you will still need to pay SDLT or LTT on a Part Buy, Part Rent property, there is a good chance you will pay less than if you were buying a property outright. We recommend that you seek advice from your solicitor who should be able to confirm the rate you need to pay.
How much will my rent cost and will the rate increase over time?
The rent is set at the point of purchase. We then carry out annual rent reviews on 1st April every year and index them in line with increases to the Retail Price Index, subject to a minimum 0.5%.
Am I free to sell my Part Buy, Part Rent home when I want to?
Yes, you can sell your property at any point to another person eligible for the Part Buy, Part Rent scheme.
What do I need to do when I wish to sell my property?
If you decide to sell your Part Buy, Part Rent home, you will need to get an open market property valuation from an independent RICs valuer or surveyor. Our sales team can guide you through the selling process. The resale of a Part Buy, Part Rent property will be subject to an additional charge amounting to 0.25% per year of occupation (part years will be rounded up), going towards the development’s reserve or sinking fund.
Administration fees are also required upon sale of your home. This fee covers the manager’s involvement in a resale (e.g. providing bank account details, service charge accounts, lease and legal information, meeting prospective purchasers etc.). The total amount payable will vary on each resale depending upon the time spent collating information requested from the vendors and purchaser’s solicitors, this will be charged at a reasonable hourly fee. The fee will not exceed 1% of the sales price.
How does staircasing work? Will I need to pay further fees?
Keystone offers Part Buy, Part Rent property owners the option to buy a greater share of their home in 10% increments. This is known as staircasing and the cost of doing this will be based on a valuation of your home at the time you wish to buy, so this may be higher or lower than the initial value of your property. If you wish, you can buy increments all the way up to the point you own 100% of your own home.
At this stage, you would no longer pay rent, but you would still need to pay the service charges to Longhurst Group. Every time you choose to staircase, you will need to factor in additional costs, such as valuation fees, legal expenses and SDLT/LTT, if applicable.
What happens if my financial circumstances change and I can no longer afford my rent?
We know that sometimes, despite the best planning, circumstances change. That’s why, from the very beginning, we make sure that this is the right housing option for you by carrying out our initial affordability checks and requiring you to consult with an independent financial advisor. If, however, you find yourself in a situation where you can no longer cover your rental payments, your landlord will contact you to arrange repayment and, in some circumstances, will agree a new payment plan that suits all parties.
What long-term costs do I need to consider?
As well as accounting for the cost of rent for the share of your property that you don’t own, you will also need to factor in service charges and regular household costs that you would usually organise yourself, including council tax, TV licence and contents insurance.