Aarron and Katie Cousins, residents of Woking who will benefit from Earn Your Deposit tells us how the scheme will benefit them and help them to one day own their own home.
Earn Your Deposit
The amount of Deposit that can be earned is linked to the increase in value, over the long term of properties that are owned by Thameswey.
On average, the value of properties increased by more than 3% per annum.
This will enable the tenant to share a proportion of the likely future property value uplift.
It is proposed that the Thameswey retains about two thirds and that about one third is available for the tenant.
The tenant may only access these funds for the purchase of their first home; it
is not available to “investors” or people seeking second homes or those who already have homes including those on a “Buy to Let” basis.
Whilst intended only for “first time buyers” it is recognised that some exceptions will be necessary, for example when a couple who previously owned
a home splits up and either party have to rent for a period before being able to buy another home.
The table below indicates an assessed “average value” of different properties of the type owned by Thameswey and the Council, by bedroom size.
The tenant will need to be a Thameswey qualifying assured shorthold tenant for two years prior to the Deposit being available for release.
It is proposed that at the outset the maximum deposit that could be accumulated should be £80,000 which is a significant sum.
At the end of each year Thameswey will notify the tenant of the level of Deposit they have earned.
Arrangements will be made for shared tenancies which will recognise that it may be necessary to split the Deposit when tenants leave to set up different homes.
In addition provision will allow tenants to upsize and downsize and take their accumulated Deposit with them as long as there is no break in tenancy with
When the tenant reach the point where they want to buy a home of their own, the accumulated deposit will be released exclusively for the purpose of a deposit.