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How does it work

  • All you need is a deposit equivalent to 10% of the value of the property you want to buy, although you can put in more if you want.
  • HOP owns the balance.
  • In return, you make a monthly HOP Payment, which in most cases will work out at less than the rent you pay at the moment.
  • You can buy a bigger share of the property, any time you want, all the way up to 100%. Because your HOP payment is linked to the balance HOP has invested in the property, as your share increases, your HOP payments get less.
  • You are free to sell at any time.
  • When you sell, you benefit from any increase in the property’s value. You get the value growth in your share, plus 25% of the growth in HOP’s share from day 1! And this 25% increases by 2% every year. So, if you sold after 10 years, you would get 55% of the property’s total increase in value, even if your share was still 10%.
How HOP makes it possible to buy

What does it cost?

  • You pay solicitors’ fees when you buy with HOP, just as you would buying a property any other way.
  • It’s in our interest to ensure the property is a sound investment, so we will pay for an independent valuation and survey, which of course we will share with you.
  • Once the purchase is complete, you are responsible for the usual costs of being a home owner, such as repairs, council tax and insurance.
  • Your HOP Payments are made every month, with the annual total being 5% of the HOP share of the purchase price in year 1. This payment increases at just 0.5% above the RPI every year, but will never increase more than 5% in one year, however high the inflation rate, which means you can feel confident about being able to afford the HOP Payment in the years ahead.
  • For example, if you had £30,000 to put down on a property, you could buy a home with HOP for £300,000, with HOP contributing the balance of £270,000.
  • In year 1, your annual HOP Payment would be 5% of this balance:
    £13,500, or £1,125 monthly.
  • Each year, the HOP Payment would increase by 0.5% above the Retail Price Index. So, if the Retail Price Index was 2.5% in Year 2, the HOP increase would be 3%, and your monthly HOP Payment for the second year would increase by £33 to £1,158 per month.

What is the value of your property?

£300,000

Deposit: £30,000

HOP Contribution: £270,000

Year 1 HOP Payment: £13,500 or £1,125 monthly

Year 2 HOP Payment: £13,905 or £1,159 monthly

Share in growth

What is the initial value of your HOP home?

£300,000

What will be your initial deposit?

%10.00

View growth after:

Predicted property value:

£309,000

Your share of value growth

£9,000

£3,087

What are the benefits?

No need to save a big deposit

You only need to have saved 10% of the property’s purchase cost in order to buy it with HOP

Reduced Monthly Costs

In most cases, your HOP Payment will be less than it would cost to rent the very same property

You get more than your share of any increase in the value of the property

You get your share of any increase in the value of the property over the time that you live there. Plus you get 25% of the growth in HOP’s share from day 1. And this 25% increases by 2% every year. So, after 10 years you would get 45% of HOP’s growth. Which means, even if your share was still 10%, you would get 55% of the property’s total increase in value when you sold.

HOP pays for the survey and valuation

This could save you between £500 and £750.

You can be confident that they will be accurate, because HOP needs these to be as reliable as you do.

You can make your place your home

Unlike renting, you are free to decorate and improve as you wish.

You can increase your share

You can buy a larger share of the property any time you want, all the way up to 100%.

The larger your share, the lower your HOP Payments

Your monthly costs are predictable

Payment terms are set out in the purchase agreement, and your HOP Payments increase at a rate linked to the RPI. So, unlike rent, your payments are predictable, giving you  security and helping you budget

You can sell at any time

Want to move on? You can decide when.

Your exposure to any loss of value is limited.

Should the value of the property decrease over the time that you live there, HOP shares in the value loss too, in proportion to the share it holds of the property.

Find the answers to all of the most asked questions in our FAQs