First Time Buyers: What you need to know in 2021 - Estate & Lettings Agents - Worthing & Sussex

First Time Buyers: What you need to know in 2021

1. Help to buy ISA

GOV.com states:

You can no longer open a Help to Buy  ISA

If you already have one. You can pay in up to £200 each month. The government will top up your savings by 25% (up to £3,000) when you buy your first home. If you are buying with someone who also has a Help to Buy  ISA, both of you will get the 25% bonus. You can pay into the ISA until November 2029. You can claim the 25% bonus until November 2030.

For further information visit: https://www.gov.uk/affordable-home-ownership-schemes/help-to-buy-isa

or  https://www.moneysavingexpert.com/savings/help-to-buy-isa/

2. First Home Scheme


What is a First Home?

GOV.com states:

First Homes are a specific kind of discounted market sale housing and should be considered to meet the definition of ‘affordable housing’ for planning purposes. Specifically, First Homes are discounted market sale units which:

a) must be discounted by a minimum of 30% against the market value;

b) are sold to a person or persons meeting the First Homes eligibility criteria (see below);

c) on their first sale, will have a restriction registered on the title at HM Land Registry to ensure this discount (as a percentage of current market value) and certain other restrictions are passed on at each subsequent title transfer; and,

d) 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).

First Homes are the government’s preferred discounted market tenure and should account for at least 25% of all affordable housing units delivered by developers through planning obligations.

For further information visit:  https://www.gov.uk/guidance/first-homes

3. Shared Ownership Scheme

Gov.com states:

When you buy a home through a shared ownership scheme you buy a share of the property and pay rent on the rest.

The share you can buy is usually between 25% and 75%. You can buy a 10% share on some homes.

You can buy a home through shared ownership if both of the following apply:

  • your household earns £80,000 a year or less (£90,000 a year or less in London)
  • you cannot afford all of the deposit and mortgage payments for a home that meets your needs

One of the following must also be true:

  • you’re a first-time buyer
  • you used to own a home, but cannot afford to buy one now
  • you own a home and want to move but cannot afford a new home suitable for your needs
  • you’re forming a new household – for example, after a relationship breakdown
  • you’re an existing shared owner and want to move

Some shared ownership homes in a ‘designated protected area’ are only available to buy if you have a connection to the area. If you buy one of these homes, you:

  • may only be able to buy a share of up to 80%
  • must sell it back to the landlord or a buyer nominated by the landlord – you cannot sell your home on the open market

For further information visit:  https://www.gov.uk/affordable-home-ownership-schemes/shared-ownership-scheme

For a free First-time-buyers PDF downloadable version from MoneySavingsExpert visit: https://www.moneysavingexpert.com/mortgages/mortgage-guide/

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