The First Homes scheme is designed to help first-time buyers take their first step onto the property ladder. A set of criteria has been developed to ensure all First Homes are purchased by buyers who would otherwise find it impossible to do so.
Priority in some areas of the country may also be afforded to buyers who have connections with the local area and all localised criteria are set by individual local authorities.
How does the scheme work?
Under the First Homes scheme, some newly built properties are sold to buyers at a discount. These discounts can vary but prices will be at least 30% below the open market valuation.
Most new developments offer a small number of First Homes. As there aren’t any application deadlines, it is important for prospective buyers to research which contractors are offering properties under the scheme and submit applications accordingly.
First Homes properties are also subject to price caps of £250,000 outside of London and £420,000 within Greater London.
How can I determine if I’m eligible for the First Homes scheme?
The scheme is for first-time buyers, so you must never have had ownership of a property before. If you are buying with someone else, they must also qualify. Secondly, in the year preceding the purchase of a First Homes property, your total household income must have been below £80,000 or £90,000 in London.
Finally, your purchase plan or mortgage must cover at least half of the discounted purchase price of your property.
How do I use the First Homes scheme?
When your application with a developer is approved, you will be able to reserve a property and your sale can proceed. Working with a conveyancing solicitor will be beneficial as it will take some of the stress out of the purchasing process. When looking for the best conveyancing solicitors London is home to many reputable options.
Ensure that your solicitor is prepared to handle the entire process on your behalf and has tools in place to guarantee efficient communication throughout. This will streamline the purchasing process and allow you to move in to your new home as quickly as possible. But don’t forget, when searching for the best conveyancing solicitors London doesn’t need to be your only choice.
Take the time to research your options to ensure that your first step onto the property ladder is a dream and not a nightmare.