Big Dream Small Price - Move in with only 5% deposit
With apartments from just £95,000 and shared equity schemes to take the sting out of the first step to ownership, there’s no need to wait to buy the home of your dreams; you could be living in a beautiful waterside home, with as little as 5% deposit, through a shared equity scheme.
FirstBuy - Our shared equity scheme
We know that Granary Wharf is somewhere that first time buyers really want to live but that financial pressures and a lack of certainty about the market have left people feeling confused about when and how to buy.
Firstbuy is a new scheme, backed by the government and it is now available at Granary Wharf. Designed to help first time buyers take the first step to home ownership, Firstbuy is available for a limited period of time.
It is all about bridging the gap between the deposit you have (minimum 5%) and the deposit you need.
1. What is FirstBuy?
FirstBuy is funded by the Homes and Communities Agency – a government body whose role is to create opportunity for people to live in high quality, affordable places.
• The scheme is specifically aimed at consumers who are desperate to own their own home but who are struggling to raise a deposit as FirstBuy provides the deposit.
• Unlike other shared ownership schemes if you purchase through FirstBuy you still have 100% title of your home and you can sell it on open market without restriction.
2. How does it work?
• FirstBuy enables eligible buyers to purchase a new property with an affordable mortgage with help from Homes and Communities and ISIS.
• The HCA and the house builder will provide equal equity share loans to make up the cost of your home, up to 20% of the full purchase price.
• Buyers must fund 80% of the purchase price through a combination of mortgage and savings -usually borrowing 75% with a 5% deposit.
• Once a buyer has reserved their property, they will need to instruct a solicitor to act on their behalf. Once contracts have been issued, exchange takes place within 28 days, at which point a deposit of 5% (less the reservation fee) may be payable depending upon the amount of mortgage offered by the lender. When contracts have exchanged ISIS will let you know agree a date for completion. The buyer is then free to move in.
• After five years, buyers will pay a fee of 1. 75% per annum on the outstanding amount of the equity loans. This fee will subsequently increase each year by the Retail price index (RPI) plus 1%.
3. Who is eligible?
FirstBuy is aimed at people who cannot afford to buy a home on the open market and who earn less than £60,000 a year. You will be eligible for the scheme if:
– You are a first time buyer
– You want to move from social rented accommodation and buy your own home
– You are returning to the market. E.g. after a relationship breakdown
– You’re in full time employment
– You’re in private rented accommodation
– You’re running out of room at home and need more bedrooms for your expanding family
– You’ve a household income of up to £60,000 per annum
4. What are the qualifying criteria?
• Applicants must be able to demonstrate that they are unable to buy a home suitable for their needs within a reasonable travelling distance of their work place.
• They must be able to demonstrate access to sufficient funds to pay, if required, a deposit, legal fees, stamp duty and other costs of moving.
• They must also be able to prove they can keep up with their mortgage repayments in the long run.
• They must have a good credit history and will be required to take out a first mortgage with a qualifying lender.
• Typically, they will be employed on a permanent contract. If self-employed, they must be able to provide accounts for the past three years.
• Applicants must not already be home owners or named on an existing mortgage. If an applicant has had their name on a mortgage, they must provide evidence to show that is has been removed.
5. What type of home can I buy?
You can buy from a selection of homes within the Granary Wharf development.
6. What happens if I sell my home?
When you sell your home, you will need to repay all equity loans from a share of the sale proceeds. For example, if you received equity loans for 20% of the purchase price of your home, you must repay 20% of the proceeds of the sale.
7. What happens if I want to sell my house but property values have fallen?
• When you sell your house, FirstBuy loan documents commit you to repay a percentage of the market value which will be equal to the percentage contribution of assistance received.
• If the market value of your property falls below the level at which is was bought, you will repay less than the original amount you have received towards the original purchase.
• The sale of your home must be approved by a HomeBuy agent. If you have complied with the terms of the FirstBuy mortgage deeds, you will not be required to provide for any shortfall in the equity loan.
8. What if I want to start repayments on my equity loan before the five year period is up?
• After you have owned the property for one year, you can choose to make part repayments of the FirstBuy assistant at the prevailing market value.
• The minimum additional repayment is 10% of the market value.
9. How do I get started?
Register your interest for buying at Granary Wharf by calling 0113 243 4324 then you need to apply for the FirstBuy online at www.my4walls.org.uk or telephone 0113 243 6893.
Alternatively email enquiries@my4walls.co.uk
Terms and conditions apply
FirstBuy has a limited availability and is only available on selected properties up to a maximum of £200,000. FirstBuy is not valid in conjunction with any other offer and it is only available for clients who do not currently own a property. At least 80% of the purchase price is supplied by the purchaser as part of their mortgage and a cash deposit of at least 5%. The loan from ISIS and the HCA of up to 20% is registered as a second charge and no interest or rent is payable on the loans for 5 years providing that all the terms and conditions are adhered to. The charge may have to be redeemed earlier on demand. FirstBuy is subject to status, terms and conditions. Full terms and conditions are available on request. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
For further details contact the sales office at 0113 2434324 or emails us at granary.wharf@jll.com