New measures to help more people buy their first home

Posted by Richard Payne on March 25th, 2016

A series of new measures have been introduced by the government to enable more people to buy their first home.

One of the main measures aims to reduce the restrictions on who can buy a home through shared ownership, under which a person is allowed to move into a home by simply buying a share of it and paying rent on the part that doesn’t belong to them. As their finances improve, they can later buy a greater share over time.

According to CurryPopeck conveyancing solicitors Harrow, there are several different ways of allocating these homes, depending on the criteria set by local authorities. For example, in order to be eligible, potential buyers may have to work in the local area or should already be living in council housing.

From April’2016, these limits will be removed so that anyone who has a household income of less than £80,000 outside London, and £90,000 inside London, is able to buy a home through shared ownership.

Only military personnel will be given priority over other groups. The new scheme will apply across England.

Under this scheme, people will be able to buy a share of between 25% and 75% of a home. The rent on the remaining property won’t exceed 3% of the amount left.

For example, if a property is worth£227,000 and the buyer has bought a 40% share of the house, the rent won’t exceed 3% of the remaining 60%, i.e. £4,000 a year, or £340 a month, state CurryPopeck,Harrow solicitors.

The government has also announced that it is extending the Help to Buy Equity Loan scheme until 2021. Under this scheme, ifa person is able to pay at least 5% of the total value of the property as a deposit, the government will lend him up to 20% of the rest of the value of the house, along with the mortgage of up to 75%.

In addition to this, the new buyers will be able to obtain equity loans of up to 40%.

Another very significant measure introduced by the government is that Housing Association tenants will be able to buy their homes, at discounted prices, putting them on par with tenants in council accommodation.

This measure is an extension to Right to Buy and is slated to give 1.3 million households the chance to become home owners.

A small number of housing associations will be piloting the scheme in the next few months.

For many people, buying a home for the first time is a very daunting experience, as it is one of the biggest financial investments they are likely to make. The Government’s new measures to encourage home ownership is sure to make things easier for them.

Please contact CurryPopeck Solicitors if you would like more information about the issues raised in this article. Curry Popeck solicitors specialise in Corporate Law, Family Law, Employment Law, Dispute Resolution, Property Law and Sports and Entertainment Law. Their team of highly experienced solicitors, led by Philip Popeck and Lionel Curry provides tailored solutions on all the above legal issues and will be very happy to help.

To schedule an appointment or to speak to one of their experts, visit-http://www.currypopeck.com/ or simply call solicitor in Harrow at - 020 8907 2000.