Help to Buy Scheme
The new government Help to Buy Scheme was launched in April
2013 as a result of the Budget 2013. As always there are mixed opinions
regarding whether the scheme will benefit the UK property market or not. In my
opinion anything which makes homes more affordable and enables people to get
onto/move up the property ladder is a good thing in today’s market, as long as
it doesn’t lead people into money difficulty in the long term.How does it work and who can qualify?
To qualify for the Help to Buy Scheme there is currently no cap
on income and the scheme is available on properties up to the value of
£600,000. Unlike many of the other schemes aimed at getting the property market
moving Help to Buy is open to first time buyers AND existing property owners. As
the buyer you will be required to raise a 5% deposit and the government will
then provide you with an added 20% equity loan resulting in you needing a 75%
mortgage, this will enable you to achieve lower (affordable) monthly payments
and a much better interest rate. The equity loan provided by the government is
interest free for the first 5 years and then incurs interest of 1.75% by year 6,
which rises annually by 1%. The loan can be repaid at any time or upon sale of
the property.
Currently the Help to Buy Scheme is only available on new
build properties; however as of January 2014 the scheme will be available on
new build and existing properties, making it available to the vast majority of
the property market. It has been queried that this will just fuel the rich
enabling them to buy second homes and more buy to let properties, however the
scheme is only available if the property is your main home and it is not
available on buy to let’s or second homes, eliminating people from abusing the
scheme.
Help to Buy Conveyancing Services
As professional property solicitors we are well experienced
in new government property schemes and will be able to deal with your
conveyancing requirements efficiently and effectively. We have dealt with many
similar transactions such as HomeBuy, FirstBuy, Shared Ownership and Shared
Equity. We can offer you expert advice on the services you require for your
Help to Buy transaction. If you want to read more about the Help to Buy scheme
visit our dedicated Help to Buy website: www.helptobuy.me
here you can find out more information, obtain a conveyancing quote and use our
Help to Buy calculator to find out what you can afford.
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