Legal

Help to Buy with Portsmouth conveyancing solicitors: the basics explained

price of propertyGetting on the property ladder can seem almost impossible with rising house prices; however, there are government schemes to help certain individuals purchase a home. Specific criteria must be met for each scheme, but for individuals who qualify, these schemes can make the seemingly impossible, possible.

Conveyancing solicitors in Portsmouth who are experienced with Help to Buy purchases, such as Andrew & Andrew, can assist potential buyers through this process from initial instruction through to final completion.

What’s on offer with Help to Buy?

There are three main Help to Buy schemes:

Help to Buy ISA

This is applicable to first time buyers who are saving up for a home. This scheme stipulates that if a first-time buyer saves money into a Help to Buy ISA, the government will boost their savings by 25%. The maximum bonus the government will pay is £3,000 per year, which amounts to the individual saving £12,000 in a year. The minimum bonus is £400, which means individuals must save at least £16,00 a year.

Help to Buy Equity Loan

In this scheme the government will lend a buyer up to 20% of their loan value, which means they only need to find another 5% for the deposit to acquire a 75% mortgage. During the first five years of home ownership, the buyer will not be charged any loan fees.

Help to Buy shared ownership

This scheme is applicable to first time buyers or households that earn £80,000 a year or less outside London or £90,000 a year or less inside London. For these individuals who cannot afford to purchase 100% of a home, this scheme enables them to buy anywhere between 25-75% the home’s value, and contribute to the rest by paying rent.

The shared ownership scheme also has variations tailored to the disabled and older people, namely the Home Ownership for People with Long-Term Disabilities (HOLD) scheme and the Older People’s Shared Ownership scheme for those over the age of 55 – an age when acquiring a mortgage can be more difficult.

Portsmouth conveyancing solicitors can help clients determine which scheme would most benefit them and then take the necessary steps towards applying for the scheme and securing a property.