In 2013, to help boost the market after the credit Crunch left many home buyers and sellers in a difficult situation, the Government introduced Help to Buy. Help to Buy is a series of schemes to help First Time Buyers in Leeds struggling to save enough for a deposit to put their foot onto the property ladder.
Shared ownership allows applicants to buy a share of a property. How the scheme works is you own a percentage of a property that typically has to be between 25%-75%, and then you pay the rent on the remaining percentage.
The remaining percentage of the property is likely to be owned by the housing association. However, you can eventually repurchase this percentage further down the line if you wanted to. If you like the property and have long-term plans to stay there, you could buy the remaining share. People usually do this once they have the money and have settled into the property.
With the Help to Buy Shared Ownership scheme, you will still likely have to pay 100% of the ground rent and the property’s service charges, irrespective of what percentage you own.
This scheme was introduced off the back of the Help to Buy Equity Loan scheme in 2014. It aimed to help Armed Forces members get onto the property ladder as a thank you for serving their country.
If you are struggling to get yourself on the property ladder and are a member of the Armed Forces, this scheme could be perfect for you. The Government reviews the scheme in December 2022, and they will decide whether or not it should continue running. As a Mortgage Broker in Leeds, we know how much this scheme is valued, and we hope that the decision is to keep it available.
The Lifetime ISA is a great way to get yourself on the property ladder. You can use this scheme to help purchase your first home. If you are a First Time Buyer in Leeds, this scheme might appeal to you.
The Lifetime ISA is a savings account where your money grows tax-free. As well as your tax-free savings, the Government will also top up whatever you have saved by an extra 25%. The maximum amount that you can save each year is £4,000, so if you manage to save this much, overall, with the government’s 25% top-up, you will have £5,000 each year. If you save a little less, the Government will still top up your savings by 25%.
Here are the criteria for the Lifetime ISA:
We hope this information was useful, if you have a question or want Help to Buy Mortgage Advice in Leeds, don’t hesitate to get in touch with our friendly advisors who are here from early until late, 7 days a week! We also offer a free mortgage consultation to every customer no matter their mortgage situation.