Help to Buy London. Spring/Summer 2019 Edition. helptobuylondon.co.uk

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1 Help to Buy London Spring/Summer 2019 Edition helptobuylondon.co.uk

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3 Help to Buy / Spring/Summer Edition Welcome Welcome to the Spring/Summer Edition of Help to Buy London. In the following pages you will find useful information about how the scheme works, how to apply, and who is eligible. You will also find information on some of the developments, financial advisors and solicitors available. If you need any further information, you can contact one of the team by or telephone. helptobuy@aldwyck.co.uk or Don t forget you can go to our News & Events page on the website to find out what is going on. Also you can go to Facebook and Twitter. The Help to Buy team 3

4 Help to Buy / Spring/Summer Edition How does the equity loan scheme work? The Help to Buy scheme is an equity loan provided by the Government. They lend you up to 40% of the cost of your new build home, so you will need a minimum 5% deposit and a 55% mortgage to make up the rest. For this scheme, you must have a mortgage, which will be a first charge, as the equity loan can only be a second charge. The equity loan is for a maximum of 25 years or before if the property is sold or the mortgage is redeemed, whichever term is the shorter of the two. You will not be charged any interest on the 40% loan for the first five years of owning your home. However, a management fee of 1 a month will be applicable from the date of purchase. From year six, a fee of 1.75% is payable on the equity loan, which rises annually by RPI (Retail Price Index) inflation plus 1%. Example: Equity Loan of 40% on property value of 400,000 Buyer s 5% deposit 20K Government 40% loan 160K 55% mortgage from commercial lender 220K Example home value 400K Example: Estimated Interest and Management Fees (extract from Buyers Guide) Start of year London Help to Buy equity loan assistance Estimated RPI %=1 Interest fee percentage Annual interest fee and management fee due Estimated monthly payment (interest fee and management fee) 1 160,000 6% 0% ,000 6% 0% ,000 6% 0% ,000 6% 0% ,000 6% 0% ,000 6% 1.75% 2, ,000 6% 1.86% 2, ,000 6% 1.97% 3, ,000 6% 2.08% 3, ,000 6% 2.21% 3,

5 Help to Buy / Spring/Summer Edition Who is eligible? How to apply Equity loans are available to first time buyers as well as homeowners looking to move. You cannot have a deposit lower than 5% of the full purchase price. The maximum income multiple for a Help to Buy purchase is 4.5x your household joint or single income. The mortgage taken must be on a repayment basis and cannot be interest-free. Help to Buy London will carry out a sustainability check when you send your application through using the calculator provided by the Homes and Communities Agency. You cannot part exchange your current home to buy a new home under Help to Buy. You must not own any other property at the time you buy your new home with a Help to Buy equity loan. You will not be able to sublet a home purchased under Help to Buy. The home you want to buy must be a new build, advertised as Help to Buy by a Help to Buy registered developer, with a maximum price of 600,000. Help to Buy assistance is unavailable for new builds that are not Help to Buy registered. You will need to purchase a property through a house builder who is registered for the Help to Buy scheme, and therefore you will need to approach the house builder direct. You will find a list of some of the developers offering the scheme on the Help to Buy London website, You can also search on property portals such as Rightmove, WhatHouse? and Zoopla. Once you have reserved a property, you can apply online on the Help to Buy London website and attach your reservation form, declaration page and direct debit form, or you can download the Property Information Form from the website which you must complete in full and into us along with your reservation for the property. We will then check your affordability and if everything is fine, we will issue you with an Authority to Proceed. LIVE THE HIGH LIFE! U X B R I D G E Upper floor studio suites and 1 bedroom apartments ready for occupation Don t miss the opportunity to secure a stylish new apartment at Panorama, conveniently located moments away from Uxbridge town centre and station. Available with just a 5% deposit * these sought-after homes enjoy views over Fassnidge Park and benefit from a superior specification and a 10 year warranty. ZERO STAMP DUTY FOR FIRST TIME BUYERS ON SELECTED PLOTS PRICES FROM 259,995 For further details please call or sales@howarthhomes.co.uk *Subject to availability and meeting Help to Buy qualifying criteria. Computer generated illustration indicative only. 5

6 Help to Buy Customer story Name Previous Housing Status Location Kanchan & Jasmine Privately Renting Southwark Kanchan and Jasmine had been privately renting before they purchased their property with the Help to Buy Scheme. The best friends had planned to move out to Dubai but that all changed when they decided they didn t want to come back to renting. Jasmine had heard of the Help to Buy scheme and told Kanchan about it, they had some savings for a deposit but, definitely, would not have been able to buy in London without the scheme. They had not been looking at all, so when they decided to; Help to Buy really confirmed their decision to stay. When we spoke to an IFA and found out that we could afford a property in London it was amazing, we were happy, we had roughly worked it out before seeing them, but wasn t sure it was realistic. They decided that the site Maple Court was perfect for them, the Developer Rushby Ltd are a small developer regarding Help to Buy properties, but a two-bedroom flat was perfect for them. They felt very well supported throughout the process by everyone involved. They did feel they had to chase for mortgage offers etc but were still happy with the level of service. It was a brand-new process for us and we didn t realise the extent of it but advice was available and our questions were always answered. Kanchan & Jasmine moved into their property in July We had our offer accepted in February and moved in by July, it was so worth it and such a good feeling coming home and knowing that you own it. We even celebrated our 1st and 2nd month anniversaries. 6

7 PERFECT FOR COMMUTERS HELP TO BUY available RESERVE AN AMAZING APARTMENT AT MACINTOSH COURT, AVAILABLE WITH HELP TO BUY - PERFECT FOR COMMUTING MACINTOSH COURT is an exclusive development of just nine 1, 2 and 3 bedroom apartments, set in the highly desirable quiet residential area of Nascot Wood, Watford (WD17 4QY). Everything is on your doorstep Just a short walk to the town centre and Watford Junction station The perfect place to live and great for commuting into London Just 15 mins from Euston Lower cost season ticket Regular trains - more choice than St Albans and Milton Keynes 150m shopping centre regeneration - providing 16 new stores, 10 new restaurants and a new Cineworld Season ticket prices lower than St Albans, Berkhamsted & Milton Keynes Prices start from just 320,000 STUNNING SPECIFICATION INCLUDES: Integrated SMEG appliances Karndean flooring and carpets throughout Designer fitted kitchen For an appointment to view call or sales@leavalleyhomes.co.uk

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9 Help to Buy Customer story Name Previous Housing Status Location Christopher & Victoria Privately Renting Crystal Palace Christopher and Victoria were previously renting a one-bedroom ex-council property in central London, they were aware of the Help to Buy scheme but had limited knowledge and didn t know of anyone else who had used the scheme to purchase. The London market being what it is, the Help to Buy scheme meant we could look in a nicer area and afford a two-bedroom property instead of one When they started to look at new builds it was clear that Help to Buy was such a big part of the market and it meant that the properties were not only affordable but met the requirements that they had. The next steps were to speak with a financial advisor to confirm they met the criteria and were eligible for the scheme it was great to have the level of information online so I knew up front I would be approved and it was a relief when they confirmed that we could afford something in an area that we actually wanted to live!. The process for Help to Buy is managed by a few different people, the agent (Help to Buy London), the developer, solicitor and IFA. Throughout the purchase they work together to ensure that the customer is well supported and the sale is moving along as it should. We had some great feedback on ways to improve and have taken this on board. I had heard stories about how painful the process was when buying a property, but Help to Buy was straight-forward and smooth. Although the build with the development was delayed slightly, which caused some panic, HTB came through with an extension to the offer in time. Christopher and Victoria moved into their property in March 2018, unfortunately the same weekend as the Beast from the East but that didn t put a downer on their mood! Help to Buy has enabled us to buy a place we couldn t have dreamt about affording without it. With a two-bedroom property, we are now able to make a longer-term home. We would definitely recommend the scheme. 9

10 Help to Buy Customer story Name Previous Housing Status Location Lee Previous Shared Owner Hillington Lee had been a previous shared owner in a property but was looking to purchase a Help to Buy property to live in. He was looking at properties prior to finding out about the scheme and it was actually the developers who introduced him to it, however, he did advise that he wouldn t have been able to purchase it without the help. Lee visited Drayton Garden Village, a site developed by Bellway Homes and the sales advisor advised him to look into the Help to Buy scheme. He used the developers recommended IFA & Solicitor for the purchase. When the IFA advised it was affordable it was a great feeling and really lifted the bracket for what I could afford. He went ahead and reserved his two bedroom flat. From reservation to completion, Lee didn t experience any issues it was a perfectly smooth transition throughout the whole process with very minimal input from me, I felt really supported especially by the Bellway team, I would highly recommend using the scheme. He completed in August 2017 and the move went smoothly with great assistance from Bellway, there were a few teething issues but that is to be expected and was out of the control of the developer. 10

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12 A NEW LONDON WATERFRONT DESTINATION London Help to Buy now available at this well-connected riverside development. With a prime position right on the Thames, views across the Canary Wharf skyline, and numerous shops, bars and lifestyle facilities, Royal Arsenal Riverside is one of the capital s most exciting riverside addresses. On-site Crossrail forthcoming One of the Capital s best connected developments Beautiful homes The Waterside Club Including 20m swimming pool and 24hr concierge 1 and 2 bedroom apartments Prices from 440,000 (Ready for occupation) Call to register your interest ROYAL ARSENAL WOOLWICH CANARY WHARF LIVERPOOL STREET BOND STREET HEATHROW 8 MINUTES * 14 MINUTES * 22 MINUTES * 50 MINUTES * Sales & Marketing Suite open 10am to 6pm (Thursdays until 8pm) Imperial Building, No. 2 Duke of Wellington Avenue, Royal Arsenal Riverside, Woolwich, London SE18 6FR Photography is indicative only. Computer generated image of Royal Arsenal is indicative only. Prices and information correct at time of going to press. *Approximate travel times for Crossrail taken from Royal Arsenal Woolwich. Source:

13 LONDON LIVING MEETS VILLAGE LIFE A vibrant new destination surrounded by parkland London Help to Buy now available. Just 16 minutes* from London Bridge by train, Kidbrooke Village offers contemporary London living in a thriving village environment, with a range of on-site facilities and beautifully landscaped green spaces. OVER 35 HECTARES OF GREEN OPEN SPACES F O R T H C O M I N G ON-SITE RETAIL HUB 16 MINS TO LONDON BRIDGE* 2 BEDROOM APARTMENTS FROM 567,500 AWARD W I N N I N G DEVELOPMENT CONNECT WITH LONDON C Y C L E RESIDENTS ONLY FACILITIES CALL TODAY TO REGISTER YOUR INTEREST ANTICIPATED COMPLETION: OCTOBER JANUARY KIDBROOKE STATION LONDON BRIDGE WATERLOO EAST CANARY WHARF 16 MINUTES * 19 MINUTES * 22 MINUTES * Delivered in proud partnership with: Sales & Marketing Suite open daily 10am to 6pm (Thursdays until 8pm) Wallace Court, 40 Tizzard Grove, London SE3 9FD Photography is indicative only. Computer generated image of Kidbrooke Village is indicative only. Prices and information correct at time of going to press. *Timing is approximate only. Source: London Help to Buy is subject to the Homes and Communities Agency s (HCA) terms and conditions and is available on selected new build homes up to 600,000 to customers where the property represents their only residence. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. CHECK THAT THIS SCHEME WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN ANY DOUBT, SEEK INDEPENDENT FINANCIAL ADVICE.

14 Launching Spring/ Summer 2019 Perfectly located in the heart of South West London

15 Help to Buy Customer story Name Previous Housing Status Location Charlotte Privately Renting Tower Hamlets Charlotte had been privately renting with a friend in London for 2 ½ years before she was able to purchase her first home. Without the Help to Buy scheme she wouldn t have been able to purchase in London, as it was unaffordable for her. Charlotte had always wanted to get on the property ladder, but knew that she wouldn t be able to as she did not have a big enough deposit. After hearing about the Help to Buy scheme on the news, she carried out her own research to better understand how the process works and decided to apply. Charlotte was able to put 10% of the full purchase price down on her property and took a 20% equity loan from the government. Charlotte moved into her new home in April, within two weeks following completion, and couldn t be happier with her first flat. Thank you, I couldn t have done it without Help to Buy. There is no better feeling than paying off your own mortgage, instead of somebody else s! It has been novel and exciting, a big step in life. Firstly, Charlotte spoke to a mortgage advisor to ensure she was eligible to apply for the scheme. The advisor was great and did all the hard work for me, it was very straightforward. I answered a series of questions and they consequently advised me on the required deposit amount. Charlotte was elated when she found out she was approved for the scheme. The whole process from reservation to completion was very smooth, both with Help to Buy London and her mortgage advisor, and Charlotte felt well supported. 15

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18 Don t miss out Last few remaining STAMP DUTY PAID* SAVING YOU THOUSANDS! Reserve your stunning 4 or 5 bedroom family home today and we ll pay your stamp duty* Help to Buy is also available Prices from 550,000 Perfect for growing families with everything you need within easy reach; local amenities, good local schools and excellent commuter links. Spacious interiors Intergrated AEG kitchen appliances Carpets & flooring throughout For an appointment to view call or sales@leavalleyhomes.co.uk The Gables, Lower End Road, Wavendon, Milton Keynes, MK17 8DA *Stamp duty paid on properties under 600,000 Help to Buy is subject to terms and conditions. Details are correct at the time of print

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20 Help to Buy / Spring/Summer Edition Help to Buy frequently asked questions Q. Can I buy a home off plan? Yes, you are able to reserve a new home off plan at any time. However, you cannot exchange contracts before six months to legal completion of the sale. You also need to ensure that your mortgage offer is valid through to legal completion. Q. Will I have to pay Stamp Duty? The Government s standard rules and procedures for Stamp Duty Land Tax (SDLT) apply to all Help to Buy purchases. SDLT is payable at the time of purchase, on the full purchase price of the home. That is, the amount paid by you (the first mortgage and any cash contribution) plus the value of the Help to Buy assistance. There is no further SDLT to pay on any staircasing repayments or repayment when the home is sold. You should budget for SDLT on the full open market price of the property when you purchase a Help to Buy home. Q. Can I use a builder s part exchange scheme? No, Help to Buy purchasers cannot be used in conjunction with any part exchange schemes. Q. Who pays for repairs and on-going maintenance to my home? It is your responsibility to repair and maintain your home. New homes often come with a guarantee that will cover certain defects for up to 10 years after it was built. This guarantee usually only covers defects in the house builder s workmanship. Your solicitor/conveyancer will be able to advise in more detail on this. Q. Are there any restrictions on the properties that I can purchase? All Help to Buy homes are on new build developments where the Agency has a registration agreement with the house builder. You can only purchase from these house builders. The maximum purchase price is 600,000. Q. Can I sublet my Help to Buy home? No. Help to Buy is designed to assist you to move on to or up the housing ladder. If you wish to sublet, you will first have to repay the Help to Buy equity loan assistance. In exceptional circumstances (e.g. a serving member of the Armed Forces staff whose tour of duty requires them to serve away from the area in which they live for a fixed period, then sub-letting is allowed. In these circumstances you would also require approval from your mortgage lender and the Agency s Mortgage Administrator). Q. Can I own other homes and buy a Help to Buy home? No. Help to Buy is designed to assist you to move up the housing ladder and must be your only residence. This means you will be expected to sell your current home (in the UK or abroad) if moving up the ladder. The disposal of your current home will be verified by your solicitor/conveyancer before you can proceed to exchange contracts on the Help to Buy Home. In addition you cannot be linked to another property financially. For the avoidance of doubt, married couples own assets jointly and therefore if one owns a property the other is directly linked to the asset and treated as a home owner also. For more information please visit: helptobuylondon.co.uk e: helptobuylondon@aldwyck.co.uk t: Your home is at risk if you do not keep up repayments on a mortgage or other loans secured on it