Buying your first home is an exciting milestone, but it can also be a daunting process. With property prices rising and the cost of living increasing, many first-time home buyers find it challenging to save for a deposit and secure a mortgage.
Fortunately, there are various government assistance schemes in place to help first-time buyers get a foot on the property ladder.
In this comprehensive guide, SAM Conveyancing explore the different types of government assistance available to first-time home buyers in the UK, ensuring you have all the information you need to make your dream of homeownership a reality.
Lifetime ISA
One of the most beneficial schemes currently available is the Lifetime ISA (LISA). Designed to help people aged 18 to 39 save for their first home or retirement, the government will add a 25% bonus to your savings, up to a maximum of £1,000 per year. You can save up to £4,000 each year in a LISA, and the funds can be used to buy your first home up to the value of £450,000.
The key advantage of the LISA is the government bonus, which significantly boosts your savings. However, there are penalties for withdrawing money for purposes other than buying your first home or retirement, so it’s important to plan carefully.
Right to Buy
If you’re a council tenant, the Right to Buy scheme could help you purchase your home at a discounted price.
The discount you receive depends on how long you have been a public sector tenant, the type of property you’re buying, and the property’s location.
The Right to Buy scheme can offer substantial discounts, making it an attractive option for long-term council tenants looking to buy their home.
It’s worth noting that there are specific eligibility criteria, and the process can be complex, so seeking professional advice from experts can be beneficial.
Shared Ownership
Shared Ownership is another excellent option for first-time buyers who cannot afford to buy a home outright.
Under this scheme, you buy a share of a property – usually between 25% and 75% – and pay rent on the remaining share.
Over time, you can choose to buy additional shares, a process known as staircasing, until you own the property outright.
Shared Ownership properties are available through housing associations and are typically new-build or resale homes.
Wind-up
Navigating the property market as a first-time buyer can be challenging, but there are numerous government schemes designed to assist you.
From shared ownership to savings bonuses, these initiatives can make buying your first home more achievable.
If you’re unsure which scheme is right for you or need help with the legal aspects of buying a home, consider reaching out to experts for professional advice and support.
With the right assistance and information, you can confidently move towards owning your first home.
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