Buying a new build shared ownership FAQ
- A service charge is a monthly payment you pay to VIVID to cover the cost of providing services such as communal repairs, communal maintenance & improvements, buildings insurance, Estate charges and management costs.
- Building insurance is included in your service charge
- We recommend that you take out an additional contents insurance
- You may have bought a 25% share of your home, but you’ll still need to pay 100% of the service charge each month.
- Your service charges may increase or decrease each year
- The cost of the service charge will be outlined against each available property on our pricelists and starts off as an estimate
- At the beginning of each financial year, the service charge cost is reviewed and amended depending on what was spent in the last year
- There may be a third-party management company who handle repairs and other maintenance. To find out if your home has a third-party management company, this will be confirmed on the key information documents against each property
- Pricelists & key information documents can be found against each property listed on our website
- All homes bought through the shared ownership scheme are leasehold. This means you own your share of the home, but the land that your home is built on is owned by the freeholder – which in this case is VIVID. The length of the lease is outlined in your lease which you'll receive from your solicitor. It could be 125, 250 years, or in some cases, 990 years
What if I own 100% of my home?
- If you decide you want to staircase so that you own 100% of your home, you’ll no longer make rent payments to us, but you may still be a leaseholder (especially if you live in a flat) so monthly service charges will still apply
- If you purchase a flat or coach house, you will always remain a leaseholder as the freehold cannot be
- If you live in a house and want to have the freehold once you own 100%, let us know. You’ll need to arrange buildings insurance, as it’ll no longer be included in your service charges
- On some occasions there may be restrictions to staircasing to 100%. This will be confirmed in your lease
- Shared ownership is so popular that we usually sell all our homes off plan, before they’re finished being built. This means when you apply and reserve your new home, it may still be a building site, and therefore not safe to visit. As soon as it’s ready or safe to do so, we'll arrange a visit
- This does mean that if purchasing a newbuild shared ownership, you will need to feel comfortable purchasing a home off plan without being able to view before you exchange contracts
If you want to buy from us, you have to work with one of our carefully chosen financial advisors, who are experts in shared ownership and how we sell homes. You can use your own financial advisor too, especially to organise your mortgage. But our advisors will still do the first checks.
We work with:
- Chartwell Funding (01454 540 500 or vivid@chartwellfunding.co.uk)
- Mortgage Decisions (03454 500 200 or vivid@mortgagedecisions.com)
- The Mortgage Village (03301 337244 or admin@themortgagevillage.com)
You’ll hear us use the terms handover date and completion date. There is a difference between the two terms:
- Handover date means the date the developer gives VIVID the keys to the property
- Completion date means the date we give the keys to you (once the legals are done and the purchase price has been paid)
- Exchange is the first part of the legal binding process where contracts are exchanged and your deposit has been paid
- Exchange happens within the first 28 days of buying one of our newbuild homes and the 28 day exchange deadline begins the moment VIVID instruct their solicitor to begin work
- In most cases, once you exchange, your deposit cannot be returned
- Exchange happens once your mortgage offer is in (if buying with a mortgage) and once solicitors are ready
- Completion is the final part of the process and only happens once VIVID take handover from the developer. Once completed, you're able to collect your keys and move in
- It’s your responsibility to pay for any repairs to your home, as outlined in your contract/ lease
- The good news is that your home comes with a 10-year NHBC or LABC warranty (sometimes 12), for any major structural damage. Any excess that needs to be paid for any work undertaken will be your responsibility to pay
- It is also your responsibility from the day you move in to regularly service your boiler
- You may also be advised to register any manufacturers warranties on any fitted kitchen appliances (if included) once you have moved in
- Our newbuild shared ownership homes are valued by a RICS (Royal Institution of Chartered Surveyors) surveyor, which confirms the full market value for 3 months
- Every 3 months we’ll have the homes revalued, to make sure they're in line with the current market rate. This means the price is non-negotiable
- It also means the value of the homes could go up or down, so are subject to change but you aren’t able to negotiate the price
This is not something we can offer. To keep costs down we buy kitchens, bathrooms, carpets and other things in bulk.
- This varies depending on the development, and you’ll need to ask permission if you want to install one. There’ll be more information in your ‘Home User Guide’ when you move in
- Some developments have restrictions on which suppliers you can use for TV and internet in the first few years, so please check with VIVID or the developer
We advise that you don’t store bulky or precious items in the loft space as it’s not boarded out for storage and can create damp issues. In flats, you legally only own up to ceiling height and access to the loft space is for access for maintenance purposes only
If you use the loft and a repair is then needed, you may invalidate any warranty
In new build homes, pets are welcome. For older homes, please check your lease for any restrictions regarding pets – you’ll usually need to ask us beforehand. You don’t need to ask permission when buying a newbuild.
- This will depend on the developer so please make sure to check your Handover Sheet when you move into the property
- If the developer doesn't provide the wheelie bin, you will need to speak to the local council and arrange one
Your ‘Memorandum of Sale’ and conveyance plan will show if you’ve been allocated a parking space, and whether it’s allocated to you or if the parking spaces in the area are free for all residents to use. The number of parking spaces you get is set by the local authority planning department.
- Turf (grass) is a gifted item (not part of your purchase price) and so won't be covered under the defects warranty. If turf is dry when you move in, we recommend watering it twice daily, and reseeding if needed
- Weather dependant, in rare cases, your turf may not be installed when you complete and move into your home but the developer will arrange appropriate access once the weather allows for this installation
- The presence of leather jackets, caterpillars, moths or butterflies in gifted turf will not be treated by us or the developer
You can work this out by looking at the site plan, which will either be in the brochure or sent to you by email. The conveyancing plan for your new home will also tell you this information.
As a shared ownership leaseholder it’s up to you to service your boiler. You need to do this at least once a year.
You’re not able to make any changes to the property before completion. After completion, if considering any changes, please be aware this may invalidate any warranties.
We recommend for the first 12 months after handover, not to make any changes to your home so that you don’t invalidate any warranties if a repair is needed in the area you have made a change. If you decide to make any decorative changes, please keep this in mind
As standard, our newbuild properties come fully carpeted, with vinyl flooring in the kitchens, bathrooms & WC areas. In some cases the flooring may be different and this will be confirmed in our brochure. The flooring is classed as a ‘gift’ and cannot be removed or changed prior to completion.
