Graduated Ownership : Seven steps to a GO purchase
STEP ONE: Provider determines OMV of house or flat with independent valuation
STEP TWO: Owner satisfies eligibility criteria laid down by Provider
STEP THREE: Provider and Owner agree Owner’s Percentage (between 30% and 75% as shown on chart) on the basis of affordability criteria for the purchase of the house or flat. This determines the length of the Restricted Resale Period. See chart, column RRP.
STEP FOUR: Owner self-funds minimum 5% deposit
STEP FIVE: Owner obtains mortgage offer for the remainder of Owner’s Percentage from first mortgagee
STEP SIX: Owner agrees to give a second mortgage to Provider to secure Residual Value. Note: authorisation from FCA will be required as from March 2016 unless Provider is exempt.
STEP SEVEN: Owner pays Owner’s Percentage to Provider and completes purchase of house or flat in the normal way.