Help to Buy Frequently Asked Questions - Help to Buy London
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Help to Buy Frequently Asked Questions
Are there any restrictions on the
Can I buy a home off plan?
properties that I can purchase?
Yes, you are able to reserve a new home off plan at All Help to Buy homes are on new build developments
any time. However, you cannot exchange contracts where the Agency has a registration agreement with
before six months to legal completion of the sale. You the house builder. You can only purchase from these
also need to ensure that your mortgage offer is valid house builders. The maximum purchase price is
through to legal completion. £600,000. Spring/Summer 2018 Edition
Will I have to pay Stamp Duty? Can I sublet my Help to Buy home?
The Government’s standard rules and procedures for No. Help to Buy is designed to assist you to move on
Stamp Duty Land Tax (SDLT) apply to all Help to Buy to or up the housing ladder. If you wish to sublet, you
purchases. SDLT is payable at the time of purchase, will first have to repay the Help to Buy equity loan
on the full purchase price of the home. That is, the assistance.
amount paid by you (the first mortgage and any
In exceptional circumstances (e.g. a serving member
cash contribution) plus the value of the Help to Buy
of the Armed Forces staff whose tour of duty requires
assistance. There is no further SDLT to pay on any
them to serve away from the area in which they live
‘staircasing’ repayments or repayment when the home
for a fixed period, then sub-letting is allowed. In these
is sold. You should budget for SDLT on the full open
circumstances you would also require approval from
market price of the property when you purchase a
your mortgage lender and the Agency’s Mortgage
Help to Buy home.
Administrator).
Can I use a builder’s part Can I own other homes and buy a
exchange scheme? Help to Buy home?
No, Help to Buy purchasers cannot be used in
No. Help to Buy is designed to assist you to move up
conjunction with any part exchange schemes.
the housing ladder and must be your only residence.
This means you will be expected to sell your current
Who pays for repairs and on-going home (in the UK or abroad) if moving up the ladder.
maintenance to my home? The disposal of your current home will be verified by
your solicitor/conveyancer before you can proceed to
It is your responsibility to repair and maintain your exchange contracts on the Help to Buy Home.
home. New homes often come with a guarantee that
will cover certain defects for up to 10 years after it In addition you cannot be linked to another property
was built. This guarantee usually only covers defects financially. For the avoidance of doubt, married
in the house builder’s workmanship. Your solicitor/ couples own assets jointly and therefore if one owns a
conveyancer will be able to advise in more detail property the other is directly linked to the asset and
on this. treated as a home owner also.
For more information please visit:
helptobuylondon.co.uk
e: helptobuylondon@aldwyck.co.uk
t: 0300 5000 996
Please scan code
to visit our website
Help to Buy London
YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS
ON A MORTGAGE OR OTHER LOANS SECURED ON IT.
www.helptobuylondon.co.uk
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 email or telephone.
helptobuy@aldwyck.co.uk or 0300 5000 996.
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 London team at the London Home Show
Whether you're looking for your dream
home or have found it, make sure you
get the right mortgage advice...
Talk to one of our professional advisers today.
Call 0800 849 1279 or visit
www.charlesderbymortgagebureau.com
How does the equity loan scheme work? Who is eligible? How to apply
The Help to Buy scheme is an equity loan provided by the Government. They lend you up to • Equity loans are available to first time buyers as well You will need to purchase a property
40% of the cost of your new build home, so you will need a minimum 5% deposit and a 55% as homeowners looking to move. through a house builder who is registered
mortgage to make up the rest. for the Help to Buy scheme, and therefore
• You cannot have a deposit lower than 5% of the full
For this scheme, you must have a mortgage, which will be a first charge, as the equity loan can only be a second purchase price. you will need to approach the house
charge. The equity loan is for a maximum of 25 years or before if the property is sold or the mortgage is redeemed, builder direct.
whichever term is the shorter of the two. • The maximum income multiple for a Help to Buy You will find a list of some of the developers offering
purchase is 4.5x your household joint or single the scheme on the Help to Buy London website,
You will not be charged any interest on the 40% loan for the first five years of owning your home. However, a
income. The mortgage taken must be on a repayment www.helptobuylondon.co.uk.
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%. basis and cannot be interest-free. You can also search on property portals such as
Rightmove, WhatHouse? and Zoopla.
Example: Equity Loan of 40% on property value of £400,000. • Help to Buy London will carry out a sustainability Once you have reserved a property, you can apply on-
check when you send your application through line on the Help to Buy London website and attach your
using the calculator provided by the Homes and reservation form, declaration page and direct debit
Communities Agency. form, or you can download the Property Information
Buyer’s 5% deposit Form from the website which you must complete in full
• You cannot part exchange your current home to buy a and email into us along with your reservation for the
new home under Help to Buy. property.
Government’s 40% loan
We will then check your affordability and if everything
• You must not own any other property at the time you is fine, we will issue you with an Authority to Proceed.
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.
55% mortgage from
commercial lender
The example below shows how interest fees are calculated. INDIGO
SQUARE
S U R B I T O N
Annual interest Estimated
London Help to
Start Estimated Interest Fee fee and monthly payment
Buy equity loan
of year RPI %+1 percentage management
assistance
fee due
(interest fee and
management fee) Surbiton’s new destination
1 £160,000 6% 0% £12.00 £1.00 for modern living.
2 £160,000 6% 0% £12.00 £1.00 Located just moments from the River Thames and
Surbiton’s lively bars and restaurants, Indigo Square
3 £160,000 6% 0% £12.00 £1.00 brings a new dimension to modern living.
4 £160,000 6% 0% £12.00 £1.00 Set around a private communal courtyard garden,
these contemporary 1 & 2 bedroom apartments and
5 £160,000 6% 0% £12.00 £1.00 2 bedroom duplexes offer luxurious finishes. In addition,
each benefits from their own private outdoor space.
6 £160,000 6% 1.75% £2,812.00 £234.00
PRICES FROM £400,000
7 £160,000 6% 1.86% £2,988.00 £249.00
Computer generated illustration indicative only
8 £160,000 6% 1.97% £3,164.00 £264.00
9 £160,000 6% 2.08% £3,340.00 £278.00
For further details call 020 8390 8181 or
email surbiton@barnardmarcus.co.uk
10 £160,000 6% 2.21% £3,548.00 £296.00
Help to Buy Scheme
Help to Buy - customer story 1 Prices from £295,995
Western Avenue, Perivale UB6 8DW hooverbuilding-ub6.com
NAME: Charlotte Outen
PREVIOUS HOUSING STATUS: CO
MP
Renting Privately LE
TI
NG
LOCATION: Tower Hamlets MA
RC
H
Charlotte had been privately renting with 20
18
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.
Firstly, Charlotte spoke to a mortgage advisor to ensure 66 luxury STUDIO, 1, 2 & 3-bedroom apartmentS
she was eligible to apply for the scheme. “The advisor
was great and did all the hard work for me, it was very a rare opportunity to live in thiS ICONIC, once working 1920S Art Deco factory
straightforward. I answered a series of questions and
they consequently advised me on the required deposit ■ Without the Help to Buy scheme Charlotte wouldn’t have been
amount.” Charlotte was elated when she found out she able to purchase in London.
was approved for the scheme. Charlotte moved into her new home in April, within two
DOLPHIN HOUSE
The whole process from reservation to completion was weeks following completion, and couldn’t be happier
very smooth, both with Help to Buy London and her with her first flat.
Help to Buy Scheme
mortgage advisor, and Charlotte felt well supported. “Thank you, I couldn’t have done it without Help to Buy. Prices from £200,000
Charlotte was able to put 10% of the full purchase price There is no better feeling than paying off your own Windmill Road, Sunbury-on-Thames TW16 7FH dolphinhouse-tw16.com
down on her property and took a 20% equity loan from mortgage, instead of somebody else’s! It has been
the government. novel and exciting, a big step in life.”
18
20
Y
MA
NG
ETI
L
MP
CO
112 contemporary studio, 1 & 2 bedroom apartments
Sunbury is a suburb in the Surrey borough of Spelthorne, resting less than 15 miles from Central London
Call: 020 7739 1650 (Option 1) Email: mail@idmestates.com
Office B, West Gainsborough, 1 Poole Street, London N1 5EA
Help to Buy - customer story 2
NAME: Kanchan Tooray & regarding Help to Buy properties, but a two-bedroom flat
was perfect for them.
Jasmine Barnes-Keywood
They felt very well supported throughout the process by
PREVIOUS HOUSING STATUS: everyone involved.
Privately Renting They did feel they had to chase for mortgage offers etc
but were still happy with the level of service.
LOCATION: Southwark
“It was a brand-new
Kanchan and Jasmine had been privately process for us and
renting before they purchased their property we didn’t realise the
extent of it but advice
with the Help to Buy Scheme. The best
was available and our
friends had planned to move out to Dubai questions were always
but that all changed when they decided they answered”.
didn’t want to come back to renting. Kanchan & Jasmine
Jasmine had heard of the Help to Buy scheme and told moved into their
Kanchan about it, they had some savings for a deposit property in July 2017.
but, definitely, would not have been able to buy in “We had our offer
London without the scheme. They had not been looking accepted in February
at all, so when they decided to; Help to Buy really and moved in by July, it
confirmed their decision to stay. was so worth it and such
“When we spoke to an IFA and found out that we could a good feeling coming
afford a property in London it was amazing, we were home and knowing that
you own it.
The first choice
happy, we had roughly worked it out before seeing them,
but wasn’t sure it was realistic”. We even celebrated our ■ Kanchan and Jasmine felt very
They decided that the site Maple Court was perfect for 1st and 2nd month well supported throughout
for first-time buyers.
them, the Developer Rushby Ltd are a small developer anniversaries”. the process.
Making personalised new-build
mortgages simpler: Take the first step to becoming
a first-time buyer in London:
• Help to Buy specialists.
• Shared Ownership professionals. visit:
• Access to exclusive rates.
• Straightforward, jargon-free process.
torc24.co.uk
• Excellent, friendly customer service. call:
MORTGAGES ARE SUBJECT TO STATUS, VALUATION AND LENDER
01442 860700
CRITERIA AND ARE NOT AVAILABLE TO PERSONS UNDER THE AGE OF 18.
WE CHARGE A FEE FOR THE SERVICES WE OFFER IN RELATION TO THE
ADMINISTRATION OF YOUR MORTGAGE APPLICATION. THE AMOUNT YOU
PAY WILL DEPEND ON YOUR CIRCUMSTANCES BUT IS TYPICALLY £499.
FEES ARE PAYABLE ON APPLICATION AND ARE NON-REFUNDABLE. YOUR HOME OR PROPERTY MAY BE REPOSSESSED
WE WILL RECEIVE COMMISSION FROM THE LENDER WE PLACE YOUR IF YOU DO NOT KEEP UP REPAYMENTS ON
MORTGAGE WITH AND WE WILL ALSO RECEIVE COMMISSION FROM THE YOUR MORTGAGE.
INSURER IF YOU TAKE PROTECTION WITH THEM.
Torc24 is a trading name of Spaull Limited which is registered in England and Wales under company number 2509770, Registered Office
is Cumbria House, 16–20 Hockliffe Street, Leighton Buzzard, Bedfordshire, LU7 1GN. VAT Registration Number is 500 2481 05.
For the activities of advising on regulated mortgages and non-investment insurance contracts, Spaull Limited is an appointed
representative of Connells Limited which is authorised and regulated by the Financial Conduct Authority. Connells Limited’s Financial
Services Register number is 302221. MS/TNHG/2217/01.18
Help to Buy - customer story 3
NAME: Lee Alvarez He completed in August 2017 and the move went
smoothly with great assistance from Bellway, there were a
PREVIOUS HOUSING STATUS: few teething issues but that is to be expected and was out
Previous Shared Owner of the control of the developer.
LOCATION: Hillingdon
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”. ■ Lee wouldn’t have been able to purchase without Help to Buy.
ROXBOROUGH HOUSE
HARROW-ON-THE-HILL
CGI indicative only
Own a new one-bed apartment in
Harrow-on-the-Hill from just:
£335,000
COMPLETION SPRING 2018 Roxborough House is an exclusive collec-
tion of luxury apartments located on the low-
Show apartment
er slopes of Harrow-on-the-Hill, with access
now available to the West End and City in under 30 minutes.
To book an appointment
call 0208 912 0006 All apartments benefit from state of the art de-
sign, comfort and technology and outdoor space.
or visit: roxboroughhouse.com
CENTRAL
LONDON HARROW- OXFORD GREEN LIVERPOOL CANARY
in under ON-THE-HILL CIRCUS PARK STREET WHARF
21 minutes 25 minutes 34 minutes 39 minutes
30 minutes
pa &
!
id *
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One bedroom homes Getting on the property
ladder is easier than you think
for first time buyers from £264,000
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Wandsworth Waltham Forest
Incredibly spacious 1, 2 & 3 bedroom apartments opposite Lower Sydenham train station,
just 16 minutes to London Bridge*. Each apartment features an amazing specification including designer
kitchens with stone work surfaces and integrated appliances, a balcony/terrace and parking to all homes.
Discover how much you could save*:
2 bedroom apartments 3 bedroom apartments
from £449,995 from £599,995
Renting Buying Saving Renting Buying Saving
£1,667 £1,445.67 £221.33 £3,194 £1,927.56 £1,226.44
pcm pcm pcm pcm pcm pcm
Ealing Croydon Show Home open daily - Worsley Bridge Road | Sydenham | London | dylonworks@crestnicholson.com
www.dylonworks.com 0203 437 1269
Register today
pocketliving.com/pocket *
Estimated monthly rental figures based on 2 and 3 bedroom apartments in SE26, sourced from www.zoopla.co.uk. Estimated monthly mortgage figures provided by Torc24, Orbital House, Park
View Road, Berkhamstead, Hertfordshire, HP4 3EY. 1, 2 and 3 bedroom apartments based on a 90% mortgage with a 2 year fixed rate of 1.34%. Variable will depend on mortgage provider and
interest rates at time of purchase. Please speak to a Sales Advisor for further details. Show Home photography. Pricing correct on 02.02.18.
Three unique developments
Three unique developments
Designed with you in mind
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SHOW HOMEhome now
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AT ROYAL ARSENAL RIVERSIDE
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A limited collection of 1 and 2 bedroom apartments are available with London Help to Buy† at Royal Arsenal Riverside.
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Royal Arsenal Riverside is an outstanding riverside location, with an ever expanding range of residents’ amenities. It is ideally situated
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for the forthcoming on-site Crossrail station, due to open in December 2018 and London City Airport, which is just 7 minutes away.
Prices from £480,000 | Call 020 3930 4387 to register your interest | www.royalarsenalriverside.co.uk Only 3 homes remain at our stunning Poppyseeds
development in Princes Risborough
Sales & Marketing Suite open daily 10am to 6pm (Thursdays until 8pm).
Imperial Building, No. 2 Duke of Wellington Avenue, Royal Arsenal Riverside, Woolwich, London SE18 6FR.
An exclusive development of only 10 homes in a fantastic location,
just a short walk from the station – ideal for commuters
31 minute journey time to London Marylebone
3 bedroom homes start from £445,000
A£356,000*
stunningwith Help to Buy
collection of one, two and three bedroom apartments
SHOW HOME NOW OPEN
SHOW HOME inShow
thehome now open
enviable | Call for
location of an appointment
Nascot Wood,tojust
view.a short walk from
01923Junction
Watford 251799station| 01582 and 869420
the centre of town.
3, 4 & 5 bedroom homes
homes available
available to
to reserve
Pavilion Square Waterfront II
reserve from £389,995
from £359,995 shared ownership
Fast and frequent overground service into London Euston station in
as little as 14 minutes. There is also a regular service to St Albans,
Market sale from
Great transport links to£450,000 tojourney
M1, A5 by car, £735,000
time Milton Keynes and beyond.
to London
Great Euston
transport justto30
links mins.
M1, A5 by car, journey time
ROYAL ARSENAL CANARY WHARF LIVERPOOL STREET BOND STREET HEATHROW to London
We’re open Euston
7 days ajust
week30 |mins.
10am – 4.30pm Each apartment at Macintosh Court is as unique and individual as
WOOLWICH 8 MINUTES* 14 MINUTES* 22 MINUTES* 50 MINUTES* you are. Interior layouts have been thoughtfully designed to maximise
Viewingopen
We’re available by appointment
7 days only.
a week | 10am–5pm light and space. Kitchen areas are fully fitted with sleek and stylish
units, complemented by contrasting worktops and splashbacks.
Computer generated images are indicative only. Photography depicts Dial Arch Square at Royal Arsenal Riverside. Information correct at time of going to press. *Approximate travel times for Crossrail taken from Contact 0300 303 3226 or email sales@leavalleyhomes.co.uk
Royal Arsenal Woolwich. Source: www.crossrail.co.uk. †London Help to Buy is subject to the Homes and Communities Agency’s (HCA) terms and conditions and is available on 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 Contact 0300 303 3226 Contact 0300 303 1615
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.
or email sales@leavalleyhomes.co.uk or email sales@leavalleyhomes.co.uk
For more information on current or future developments
callmore
For 01582 869420 oron
information email sales@leavalleyhomes.co.uk
current or future developments
*Help to 01582
call 869420
Buy is subject to qualifying terms and or email sales@leavalleyhomes.co.uk
conditions. www.leavalleyhomes.co.uk
Proud to be a member of the
Berkeley Group of companies
*Help to Buy is subject to qualifying terms and conditions.
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