BY CHOOSING STEP UP
YOU WILL OWN 100% OF YOUR HOME
AND PAY ONLY 80 % NOW
Robertson Homes STEP UP scheme is the easy way to buy your new home without having to pay the full purchase price up front and because STEP UP is not a shared ownership scheme you will own 100% of your home from day one (a second charge security will be taken over your home to secure your Robertson Homes STEP UP loan).
THE BENEFITS OF STEP UP- You own 100% of your home and pay only 80% NOW.
- Most lenders who lend on this type of scheme will allow you to borrow 100% of the 80% without requiring a deposit, allowing you to keep your capital to personalise your new home or reduce your mortgage borrowing.
- You can move up the property ladder by only paying a mortgage equivalent to a smaller house for up to 10 years.
- You pay no interest or rent on the 20% STEP UP loan from Robertson Homes for up to 10 years.
HERE`S HOW IT WORKS!
Simply arrange your own finance via one of our panel approved mortgage advisors for 80% of the purchase price and Robertson Homes will provide a loan for the remaining 20%. In general you repay the loan by paying back 20% of the value of your home when you sell or transfer it, or within 10 years of the legal completion date, whichever comes earlier. This means if the value of your home stays the same or falls, you will pay back the same or less than you borrow from Robertson Homes , but if the value increases you will pay back 20% of the enhanced value of your new home. You will also benefit from the enhanced value to the remaining 80%. Please study the worked examples for precise details of how the scheme works.
Look out for the STEP UP logo on each development and contact our sales advisors for further information.
A COUPLE OF EXAMPLES
You buy a Robertson Homes property costing £150,000. You raise a first mortgage for £120,000 (80%) from your bank or building society. We lend you the remaining £30,000 (20%) through STEP UP. If you decide to sell the property for example after 8 years and the value of your home has increased to £180,000, the amount due under your STEP UP loan would be £36,000, or after 8 years and the value of your home has fallen to £140,000, the amount due under your STEP UP loan would be £28,000.
Prior to the expiry of 3 years from legal completion if you decide to sell the property a minimum of the full amount borrowed from Robertson Homes must be repaid. You should only consider a STEP UP loan if you intend to live in your new home for a reasonable period of time.
For example: You buy a Robertson Homes property costing £150,000. You raise a first mortgage for £120,000 (80%) from your bank or building society. We lend you the remaining £30,000 (20%) through STEP UP. If you decide to sell the property before the expiry of the 3 year period and the value of your home has increased to £180,000, the amount due under your STEP UP loan would be £36,000, or if the value of your home has fallen to £140,000, the amount due under your STEP UP loan would be the original £30,000 loan amount.
NO RENT TO PAY
YOU OWN 100%
Unlike Shared Ownership there is no rent to pay to a landlord, you will only have to give a second charge security over your property to Robertson Homes.
YOUR QUESTIONS ANSWERED
Q. WHAT DO I HAVE TO DO TO TAKE UP THIS OFFER?
A. Simply complete a reservation form and provide suitable ID to our on site Sales Consultants and pay a £1000 reservation fee and 2.5% deposit or if this is a second home the deposit will increase to £20,000. The contracts relating to the purchase along with separate deeds relating to the STEP UP scheme will be sent direct from our solicitors to your solicitor. This will normally be within 2 working days of reservation.
Q. HOW DO I FUND THE PURCHASE?
A. Robertson Homes cannot provide any financial advice. We do however have a list of panel approved mortgage advisors who you will be required to use and are familiar with the STEP UP scheme. They can help you find a suitable mortgage for the main part of the price (which your bank or building society will secure by a first security on the property). The STEP UP loan will cover the remaining 20% of the price.
Q. DOES STEP UP APPLY TO ALL ROBERTSON HOMES PROPERTIES?
A. No, the scheme is only available for purchases of selected properties for a limited period. Act quickly or you could miss out. Full details are available on request.
Q. WHAT HAPPENS AT THE END OF THE TEN YEARS WHEN THE LOAN BECOMES REPAYABLE?
A. Your STEP UP loan will become payable on the 10th anniversary of the legal completion date. You will be required to pay us 20% of the market value of your home at that time. The value of your home will be the agreed mid point valuation price following valuations by two independent valuers..The valuation decision is final. If you do not have your own money to pay the 20% you will have to raise the money by borrowing it from another lender and/or selling your home. We will consider cases of financial hardship sympathetically and positively and we may consider extending your loan, subject to security and status at the discretion of Robertson Homes.
Q. WILL THIS AFFECT MY MORTGAGE?
A. Your mortgage on this purchase is separate and is between you and your lender. Certain transactions/changes (e.g. further advance, change in title or remortgage) that you wish to make to your mortgage may require our consent as second charge holders.
Q. CAN I REPAY THE LOAN EARLY OR IN PART?
A. If you are able to do so, you can voluntarily repay the Robertson Homes loan at any time during the 10 year period based on the open market value at the relevant time only after 3 years and each payment must be no less than 25% of the calculated sum. Alternatively, you can make up to four part payments, please ask for details.
Q. CAN I USE STEP UP TO BUY A PROPERTY TO RENT OUT?
A. No, the scheme is only available for people looking for a place to live who will reside in the property.
Q. WHAT WILL I BE RESPONSIBLE FOR AFTER PURCHASING THE PROPERTY?
A. You will own 100% of the title of the property and as such you will be responsible for the normal charges associated with owning a home such as buildings insurance, council tax, maintenance and up keep of the home and gardens.
Q. WHEN I WANT TO SELL MY HOME AFTER 3 YEARS HOW DO WE AGREE THE VALUE?
A. The value of your home will be the agreed mid point valuation price assuming a transaction between unconnected parties on the open market following a valuation by two independent valuers. The valuation decision is final. In both of the above examples you would have to repay any monies owing under your first mortgage before you pay off your Robertson Homes STEP UP loan.
Q. WHEN SHOULD I CONTACT ROBERTSON HOMES IF I INTEND TO REPAY PART OF THE STEP UP LOAN OR SELL MY HOME?
A. Before you take any action contact the Sales and Marketing Director at Robertson Homes in writing who will advise you the terms of the process to be followed.
Q. ARE THERE ANY OTHER CONDITIONS?
A. The STEP UP loan cannot be used in conjunction with any other offer. Robertson Homes reserves the right to withdraw the STEP UP scheme at any time. Credit is available subject to security and status. Credit provided by Robertson Homes Limited SC151825 10 Perimeter Road, Pinefield, Elgin IV30 6AE. Robertson Homes reserves the right to decline your credit application. Loan terms and conditions apply, full details and written quotations are available on request. Conclude Missives (Exchange contracts) within 14 days and completion/settlement as specified in the Missives (Contract).
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP THE REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.