Shared ownership surplus income policy

2.1            The purpose of this policy is to provide guidance and clarity in relation to a monthly minimum surplus income for applicants.

2.2            The minimum amount of surplus income is an amount of money that a customer should have at the end of each month once housing costs, other commitments and expenditure have been accounted for.

2.3            These costs will be established as part of the affordability assessment using a budget planner carried out by an Advisor. The Advisor will consider all elements of the applicant’s income and expenditure during the assessment.

2.4            This policy applies to Red Loft (Sales consultant for the Development Team) who have responsibility via their Sales Manager, for managing the affordability assessment process and ensuring that customers fully understand our policy.

3.1            Ensure Shared Ownership remains affordable and sustainable for all purchasers via a surplus income test to assess initial and long-term financial viability.

3.2            Ensure all prospective customers are fully aware of this policy and affordability requirements prior to incurring any costs.

4.1            B3Living require all applicants to have a minimum 10% surplus income threshold. This means that after accounting for all housing costs and other financial commitments, applicants should have at least 10% of their net income remaining.

4.2            The 10% figure is based on established industry practices and provides a consistent and practical approach to managing affordability risks for Shared Ownership applicants.

4.3            B3Living will accept a maximum of 95% loan to value (LTV) mortgage.

B3Living is committed to ensuring that no person is treated less equitably than another, and that all customers, existing or future, are treated fairly, sensitively, respectfully and with dignity, in accordance with our Equity, Diversity and Inclusion Policy.

All Shared Ownership applications will be processed in accordance with:

• Data Protection Act 2018
• UK General Data Protection Regulation
• B3Living’s Data Protection Policy

Documents will be retained and disposed of in accordance with corporate retention schedules.

B3Living welcomes customer feedback relating to the allocation process, which is used to help continuously improve our service, and received by:

• Customer suggestions
• Complaints
• Development Customer Satisfaction Questionnaires

This policy aligns with all relevant legislation and regulation, including:

• Homes England Capital Funding Guide
• Section 106 Agreements
• Money Laundering Regulations 2017
• Equality Act 2010
• Data Protection Act 2018 & UK GDPR

Shared Ownership Surplus Income Methodology

Red Loft Ltd is responsible for ensuring the consistent application of this policy in all surplus income and allocation decisions, for prospective customers.

This policy will be reviewed every three years, or earlier if necessitated by legislative, regulatory or procedural changes.