If you think that you can’t afford to buy a home in England, the government’s Help To Buy scheme could offer you the chance to get your foot on the first rung of the property ladder.
However, before you take the plunge into buying a home, you need to know what you are getting yourself into. For example, it may not be possible to sublet a room or to buy the whole property in certain cases.
With this in mind, you could benefit from expert legal advice from specialist property solicitors.
Here at First4Lawyers, we can explain your rights in clear and easy terms to help you understand your options, and also help with your conveyancing should you make a purchase. Please contact us for more information.
What is the Help To Buy scheme?Help To Buy is a government-backed initiative, only available in England, that helps to get people on to the property ladder, who might otherwise not be able to afford it. The options are:
- Help to Buy: Equity Loan
The Government lends you up to 20% of the cost of a new-build home. You need to have a 5% deposit and be able to get a 75% mortgage to cover the rest of the value.
- Help to Buy: Shared Ownership
You buy a share of a leasehold property (between 25% and 75% of its value) and pay rent on the remaining share, with the opportunity to buy a bigger share, as and when you can afford it.
- Help to Buy: ISA
A way to save for your first home, the Government will give you a bonus of 25% - so, £50 for every £200 you save (the maximum bonus you can earn is £3,000).
- London Help to Buy
Like the Equity Loan, but this scheme's upper loan limit is 40%, due to the higher property prices in London. It's available on new-build properties only, up to a value of £600,000
who is eligible for help to buy?
- The Equity Loan scheme is eligible to first-time buyers and home movers
- Shared Ownership is open to those earning £80,000 or less a year (£90,000 or less within London); to first-time buyers and to existing shared ownership wanting to move.
- For the ISA you need to be a first-time buyer, live in the UK and be aged 16 or over with a National Insurance number.
Visit the government’s Help to Buy website for full details.
HOW DO I GET STARTED?
If you wish to make use of Help To Buy to purchase a home, you should seek advice from specialists.
The experts at First4Lawyers can explain everything you need to know on the legal side in clear and easy-to-understand terms. We can also assign expert conveyancing solicitors to make sure everything is legally sound during the buying process.
Get in contact with one of our advisors for a no-obligation discussion of what we can do for you if you’re interested in purchasing a house through the Help To Buy programme.