Considering buying a new build property in London? Have you heard of Help to Buy London?
Since its introduction in February 2016 official figures show that only 256 households have used Help to Buy London to help them get on the property ladder. With the scheme currently due to end in December 2016 time is running out for buyers to take advantage.
A recent report by the Resolution Foundation think tank highlighted the decline in home ownership in England with figures falling to their lowest levels in 30 years - slipping from a peak in April 2003, when 71% of households were owner occupied, to a new low of 64% in February this year (and 58% in London).
For those Londoners hoping to get on to the first rung of the housing ladder help is available in the form of Help to Buy London, an update on the Government’s popular Help to Buy equity loan scheme. Help to Buy London recognises that first time buyers in the capital frequently need to put down a larger deposit than in other parts of England in order to secure their first property.
Under the scheme first time buyers can apply for an equity loan of 40% of the purchase price of a new build property up to the value of £600,000. When coupled with a 5% deposit buyers would only require a 55% mortgage with the lower loan to value ratio potentially opening up lower interest rates and therefore making mortgage repayments more affordable.
The Government’s equity loan is interest free for the first five years and repaid when the property is sold. The Government also takes a share of the rise in the value of the 40%, should you make a profit.
If you are considering buying a new build property, with or without the assistance of the Help to Buy scheme, and would like to talk to CBG Law about the legal aspects of the conveyancing process and obtain a competitive quotation then please call Nistha Jeram-Dave on 020 7436 5151 for a free initial conversation or email njd@cbglaw.co.uk.