ANNEX 3: SHARED OWNERSHIP AFFORDABILITY MODELLING

Burnholme and Duncombe Barracks Shared Ownership affordability modelling

1. Tables one to three below demonstrate the affordability of a range of housetypes available for Shared Ownership across Duncombe and Burnholme.

2. These are modelled on an estimated first tranche sale of 40% and a mortgage term of 35 years. The sales values are based on the latest valuation advice in Jan 2022.

3. Total monthly housing costs meet the Homes England definition of ‘affordable’ meaning that no more than 35% of a household income can be spent on mortgage and rent. All of the scenarios below meet this definition.

Scenario 1: A typical 1 bedroom (2 person) Passivhaus flat at Burnholme

Total purchase price	£200,000
Buyer contribution	£80,000
Purchase %	40%
Rent 2.75% per month of unsold equity	£275.00
Minimum household income needed	£16,888.89
Lowest deposit needed is 5%	£4,000
Mortgage repayments on 95% with 4.4% interest over a 35 year term	£189.33 per month
Total monthly outgoings	£464.33

Scenario 2: A 2 bedroom (4 person) Passivhaus house at Duncombe Barracks

Total purchase price	£325,000
Buyer contribution	£130,000
Purchase %	40%
Rent 2.75% per month of unsold equity	£446.88
Minimum household income needed	£27,444.44
Lowest deposit needed is 5%	£16,250
Mortgage repayments on 95% with 4.4% interest over a 35 year term	307.67 per month
Total monthly outgoings	£754.54

Scenario 3: A 3 bedroom (5 person) Passivhaus house at Burnholme

Total purchase price	£425,000
Buyer contribution	£170,000
Purchase %	40%
Rent 2.75% per month of unsold equity	£584.38
Minimum household income needed	£35,888.89
lowest deposit needed is 5%	£21,250
mortgage repayments on 95% with 4.4% interest over a 35 year term	£402.33 per month
Total monthly outgoings	£986.71