First-Time Buyers In Forest Hill Can Receive Help
15th July 2021 posted in Sellers Buyers
At Hunters Forest Hill, we know that buying property is often challenging, but we are here to help. We are pleased to say we have assisted many buyers and vendors in Forest Hill, and we look froward to assisting you.
If you are interested in the First Home Scheme, we are more than happy to discuss your options. Please contact us today to discuss your next move.
Are you looking to buy your first home?
- First-time buyers in England, in particular key workers, will have the chance to buy homes within their local area for a discount under the government's First Home Scheme launched this month.
- The scheme will offer selected new build properties (houses and flats) to first-time buyers for between a 30% and 50% market discount. This discount is 'for keeps' and must be applied to all subsequent purchasers.
- Based on the current average price of a new build property across England, prospective purchasers could save close to £70,000 based on a 30% discount, and nearly £115,000 if a 50% discount is applied.
- Local Authorities can define 'local connection' and are expected to prioritise key workers. There are limits on buyer income, maximum purchase price post discount and a minimum 50% mortgage will be required.
The Government website states:
The First Homes criteria are the minimum requirements a housing unit must meet in order to qualify as a First Home. Affordable Housing Update Written Ministerial Statement published on 24 May 2021, the national standards for a First Home are that:
a) a First Home must be discounted by a minimum of 30% against the market value;
b) after the discount has been applied, the first sale must be at a price no higher than £250,000 (or £420,000 in Greater London); and,
c) the home is sold to a person who meets the First Homes eligibility criteria, as set out in first 2 paragraphs under First Homes eligibility criteria.
Who is eligible to purchase a First Home?
The Government website states:
A purchaser (or, if a joint purchase, all the purchasers) of a First Home should be a first-time buyer as defined in paragraph 6 of schedule 6ZA of the Finance Act 2003 for the purposes of Stamp Duty Relief for first-time buyers.
Purchasers of First Homes, whether individuals, couples or group purchasers, should have a combined annual household income not exceeding £80,000 (or £90,000 in Greater London) in the tax year immediately preceding the year of purchase.
A purchaser of a First Home should have a mortgage or home purchase plan (if required to comply with Islamic law) to fund a minimum of 50% of the discounted purchase price.
These national standard criteria should also apply at all future sales of a First Home.
At Hunters Forest Hill, we know selling property is challenging, but we are here to assist you in the process. If you aim to buy, sell, let your home or rent property, we are active in New Cross, Peckham, Dulwich and Brockley, in addition to Forest Hill, so get in touch with one of the top three agents in London, and we will be happy to assist you.