Applications and quotas

How does the quota work?

Quota numbers vary from month to month, depending on how many applicants the Northern Ireland Co-Ownership Housing Association (NICHA) can accommodate.

Monthly quotas are announced in advance on the website and are given to all registered estate agents and financial advisers. Find out more about the application quota for Northern Ireland.

How does the draw work?

You must submit your application to NICHA during a qualifying period in any given month. Qualifying periods will be set in advance and announced on NICHA’s website. If your application is received outside of a qualifying period it will be returned to you.

It will no longer matter if you are the first to lodge an application for that month’s quota, i.e. your application will not be considered on first come, first served basis.

All applications are drawn at random to reach the quota for the month. After the draw, NICHA examines the applications to make sure these are filled in with sufficient information. Applications found to be not eligible or not completed will not count towards the quota. Once the quota has been reached, all other applications will be returned.

Keep an eye on NICHA’s website for updates on upcoming qualifying periods and draw dates. Alternatively, you can call on 028 9032 7276

What else I need to know about applying?

You will need to find the property you wish to buy before applying. Tell the estate agent or owner of the property that you want to buy through co-ownership. The estate agent or owner may help you complete the application form. Be cautious about paying any non-refundable deposits or charges as you will be liable for these even if your Co-ownership application is unsuccessful.

You can download the application form or telephone NICHA on 028 9032 7276 to receive one by post. To be included in the draw, you must submit the completed application form to NICHA during a qualifying period.

If your application is drawn and accepted, you will have to arrange a mortgage to cover the part of the property you are going to buy. The remainder of the process of purchasing the property is the same as buying a home. You must sign a co-ownership agreement to finalise the purchase of your home.

What are the costs involved?

Co-ownership aims to keep costs down compared to buying a house on an open market. You have to repay mortgage on your share of the equity and pay a monthly rent for NICHA’s share, but when the two amounts are combined the total is less than a single large mortgage payment.

Mortgage/Rent costs

Your mortgage payments will usually be considerably lower than repayments of a conventional mortgage, as you have borrowed a smaller amount of money.

Your rental amount will depend on your equity share and the share financed by NICHA. The larger your share, the lower your rent is.

Rent is set to be affordable, usually at 2.5% of the value of NICHA’s contribution in the purchase of your property. This works out at approximately £2.08 a month per every £1000 NICHA’s contributed.

Co-ownership rents are due on the first day of each month in advance.

Fees

You pay fees when you apply for co-ownership housing. You must send £250 with your application form to cover valuation (£40) and legal fees (£210). You may be able to refund some of the money after your application is processed.

Legal Package fee

NICHA offers a Legal Package to potential buyers, where both parties use the same solicitor. NICHA pays the largest portion of legal fees, while you cover the expenses for the solicitor's time when working on your behalf. You can ask the solicitor for an assessment of costs involved before you decide to accept the offered package.

If your application is unsuccessful, NICHA will refund your Legal Package fee as soon as possible, minus any costs that they have already incurred. If your application is successful, but you decide not to use the Legal Package, NICHA will refund your Legal package fee after completion.

You can choose not to use the package offered by NICHA. However, you will still have to arrange your own solicitor and negotiate the fees directly. This could work out more expensive.

Valuation fee

The valuation fee is not refundable. NICHA arranges a valuation on the property to check that it is suitable for co-ownership. This is similar to a homebuyer's report. NICHA will give you a copy of the report.

A valuation report is not a structural survey. It is a good idea to get a licensed surveyor to carry out a structural survey.