In the news

In the discussion about housebuilding the other day I was wondering why housebuilders haven't taken the next logical step:

Step into a new era of homeownership with our “Own with Assurance” Home Purchase Scheme—a unique opportunity that allows you to purchase your home while taking ownership of the construction business that built it. This scheme puts you in full control of your property, along with all associated responsibilities.

How Does It Work?

1. Direct Home Purchase with Business Transfer: When you buy your home, you also acquire a Special Construction Business (SCB) created specifically for the property’s development. This business was set up by the housebuilder to handle the construction and associated liabilities and is transferred to you at the time of purchase.
   
2. Transfer of Liability: Upon completion of the purchase, all liabilities related to defects, repairs, and maintenance are transferred to you through the SCB. The SCB comes with no income or remaining profit, and its sole purpose is to limit liability for the housebuilder. As the new owner, you bear full responsibility for any issues with the property, with no recourse against the original developer.
   
3. Full Control of Your Property: Owning both the house and the SCB gives you complete control over managing any future repairs or modifications. The transfer process is clear and straightforward, providing you with full transparency.
   
4. Ongoing Ground Rent: While you own the house and the construction business, ground rent payments will still be required. These payments are separate and must be maintained as part of your ongoing ownership responsibilities.
   
5. Transparent Transaction: The SCB provides a clean break from the builder’s liabilities, ensuring all responsibilities pass directly to you, allowing you to manage your home with confidence.
   
   

Key Benefits of the Scheme

• Complete Autonomy and Control: You have the power to manage your home and the associated business entity, deciding how to handle any defects or maintenance needs directly.

• Direct Liability Management: All potential liabilities are transferred to you with the SCB, which has no income or profit. This puts you fully in charge, with no recourse to the housebuilder for any construction-related issues.

• Privacy and Ownership Flexibility: The SCB structure offers added privacy and the opportunity to manage your property like a business, giving you both personal and financial control.

• Potential Tax Benefits: Owning a business entity may provide tax advantages. Consult with your financial advisor to explore how this might benefit you.

• Ground Rent Obligations: It’s important to note that ground rent is still payable as part of your ownership responsibilities, which must be factored into your long-term financial planning.

• Strategic Ownership Model: This scheme is perfect for buyers ready to take full responsibility for their property and manage all aspects of homeownership, including the liabilities transferred with the SCB.