How does firstbuy scheme work

How does the government First Homes scheme work and am I eligible? First Homes scheme pros and cons to consider There are pros and cons to the First Homes scheme that you should weigh up when deciding whether the scheme is right for you.

Other UK first-time buyer schemes to consider The First Homes scheme is one of several homebuying schemes available to first-time buyers in England and Wales. Now read: Everything you need to know about Help to Buy equity loans 2.

Shared Ownership The Shared Ownership scheme sees buyers purchase a percentage of a property and then pay a reduced rent on the remaining share. Read on… How much can I claim under the Help-to-Buy incentive?

Does this mean I no longer need to save for a deposit? When does the Help-to-Buy scheme end? Who can apply? Do I have to live in the property? What types of properties are included in the scheme? I have never bought a home in Ireland but I purchased one previously outside the country. Am I eligible? You must be a first-time buyer. If you ever bought a home anywhere else you do not qualify, Can I apply by myself if my spouse already has a home?

In theory, yes, but in reality it'll be difficult. I've already submitted a claim under the old rate. Can I reapply? If I am applying for a tax refund on a self-build home, how does the Revenue determine its value? Can I buy a house for cash and apply for a tax refund from the Help-to-Buy scheme?

Does the builder of the property need to be registered with Revenue? Can I use my potential Help-to-Buy refund as part of my mortgage application? Are there any other caveats or conditions? The scheme is mostly available on new build homes or flats and is ideal for those who may need a bigger property or don't quite yet have the funds to buy a property outright.

Service charges You will have to pay a general service charge on top of your rent for caretaking and maintenance of communal areas and ground rent.

Service charges can vary from year to year and they can go up or down so be prepared for possible increases in the future. The details of service charges and rent payments will be covered in your contract and you can also speak to the housing association if you have any concerns. Staircasing Through a process known as 'staircasing', you have the opportunity to buy more shares of the property as and when you can afford to, eventually even owning per cent of the property.

Your rent payments will change accordingly and restrictions on subletting are often lifted. If you staircase to per cent, you will also be able to sell your property on the open market without having to notify housing association or be limited by the offers you can accept see below.

You will also need to factor in legal fees, a RICS valuation and survey costs. You can sell your share of the property at any time but you must first notify your housing association and obtain a valuation from an independent RICS surveyor.

The process of selling your share is known as assignment. The housing association will have the right to find a buyer usually over an eight week period before you can put it on the market with an estate agent, but remember there will be added fees for using an agent and the buyer must always meet the Shared Ownership eligibility criteria.

The total sum you and the housing association will receive will depend on the RICS surveyor's valuation of the property at that time—you will not be able to accept a higher or lower offer for your share in the property. However, this does not apply if you have previously staircased to own per cent of the property. It is also possible in most circumstances to sell per cent your property to a buyer even if you don't own the full per cent of the property.

You are still limited to the RICS valuation of the property and can only accept the considered market value for the property at that time. During completion you will staircase to full ownership of the property using the buyer's funds before selling to the buyer, this is handled by your solictor and usually incurs an extra cost compared to the more standard assignment process. The main benefit of simultaneous staircasing is that the buyer does not have to meet the Shared Ownership eligibility criteria which therefore increases your potential for a sale.

Priority for Shared Ownership in Scotland exists for the following groups:. You are expected to pay your mortgage for the percentage you own and rent on the remaining share. There are costs for application fees to keep in mind too. This works in the same way as the Shared Ownership scheme but only allows you to purchase a maximum of 75 per cent of your home.

Starting a pension, types of pension, understanding pensions. How it works, what you might get, National Insurance. Ways to draw your pension, when can you retire, Pension Wise appointments.

Tax allowances, tax paid on pensions, tax relief. All guidance, including how to use the Pension Wise service. Getting started, getting the most out of savings, problems. How to invest, types of investing, buying and managing. Help with meeting goals, tax-friendly saving, saving for children. You can apply to the scheme until 31 March To work out your monthly repayments and whether you can meet them, use our Mortgage affordability calculator. The Help to Buy scheme offers an equity loan where the government lends first-time buyers in England money to buy a newly built home.

This amount is interest-free for five years. The maximum purchase price for a Help to Buy property depends on what region of England you live in. Start a webchat online or call us on Years no fees Year 6: 1. When you take out your equity loan, you agree to repay it in full, plus interest and management fees.

This is worked out by multiplying the loan amount purchase price x equity loan percentage. The equity loan percentage will reduce if any part repayments are made. The interest rate from the previous year is then used to work out the interest rate rise for the following year. When you sell your home, or the mortgage is paid off, you have to repay the equity loan plus a share of any increase in the value.

Speak to the Help to Buy agent in your local area or a local developer who is registered with Help to Buy. MoneyHelper is the new, easy way to get clear, free, impartial help for all your money and pension choices. Whatever your circumstances or plans, move forward with MoneyHelper.

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