From Friday 4th June 2021 the government launched a new scheme to help First Time Buyers get onto the property ladder if possible, in the local area that they reside in rather than being pushed out to a more affordable area.
The scheme is called First Homes and gives first time buyers a minimum whopping 30% reduction on the market value of eligible properties. A higher discount of 40%-50% can be applied by local authorities or neighbourhood planning organisations.
The first phase has started in Bolsver, East Midlands.
Eligible properties must be a new build and the maximum value of the property must not be greater than £250,000 outside London or £420,000 in Greater London AFTER applying the discount. You will need to do your own research to find out which builders are taking part in the scheme and apply directly.
Household earnings cannot be any more than £80,000 outside of London and in London no more than £90,000.
Anybody who meets the above criteria can be considered, however, the local authority can add additional criteria for the first three months that the property goes up for sale to, for example, help key workers and locals in the area have priority. After the first three months, the additional criteria can be removed so that anybody who meets the original criteria set can apply.
By the end of 2022 there are expected to be 10,000 homes available under the scheme. That remains to be seen.
NOTE: If you decide to sell the home, you must sell the property to another first time buyer AND at the same discount applied at the original purchase.
More information can be found HERE.
Please remember there are also other alternatives to the First Homes scheme and the scheme may not be suitable for all first time buyers.
The information provided in this article is not intended to constitute professional advice and neither is it a recommendation. You should take full and comprehensive legal, accountancy or financial advice as appropriate on your individual circumstances by a fully qualified Solicitor, Accountant or Financial Advisor/Mortgage Broker before you embark on any course of action.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE.
For expert mortgage advice for first-time buyers, contact us now.
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