The First-Home Owner Scheme In Detail
What are the criteria?
The first-homes scheme allows those who are purchasing their first property a discount of around 30% to 50% on the asking price. The home must be the buyer only or the main residence.
The home must be either a new home built by a developer or a home you buy through an estate agent which someone else bought through the scheme.
You can apply for the scheme if you are purchasing as a sole buyer or a joint buyer. Below are the criteria you must meet to qualify for the first home scheme:
You must:
- Be 18 or older
- Be a first-time buyer
- Be able to get a mortgage for at least half the price of the home
- Not earn more than £80,000 a year before tax (£90,000 if the property is in London)
If you’re buying with others:
- You must all be first-time buyers
- You must apply together, even if the mortgage is not in all of your names
- Your joint income (earned in the previous year before tax) cannot be more than £80,000 a year before tax (£90,000 if the property is in London)
Each council may have different criteria and may prioritise the scheme for those who are key workers, local residents, those on a lower income or applicants who are in the armed forces.
How does the scheme work?
To find a home that is part of the scheme look for properties in your area that are advertised by developers or estate agents through the First Home Scheme.
Developers offer these homes to first-time buyers with a discount of at least 30% of the asking price. And unlike shared ownership properties there is no rent to pay.
Each home that is sold is valued by an independent surveyor to ensure that the discount is based on the local market value and that the price is fair.
New-built homes that are part of the scheme cannot cost more than £250,000 (or more than £420,000 if the property is in London) after the discount is applied. The local council have the right to lower the maximum price.
Properties can be decorated and improved but if you wish to let or sell the property you will need to follow the first Home scheme rules.
How can I apply?
To apply for this first-homes scheme you must first contact the developer or estate agent and inform them you want to buy a property through the scheme. This includes George Martin.
They’ll check you meet the criteria and will help you to complete the application. The developer or estate agent will submit the form on your behalf to the local council.
Some developers and estate agents may need you to pay a reservation fee if the property you want to buy is a new build. You’ll get the fee back if your application is unsuccessful.
The developer or agent can offer incentives such as free goods or cash back which can be no more than 5% of the discounted purchase price.
Click the link below to apply for our of our residential properties.