Interested in our services?

REQUEST A QUOTE

or call 020 7183 2578

Shared Ownership

Whilst not confined to just London, numerous developments have been sold over the past decade offering owners either the option to own a percentage of the property or to take out an equity loan against part of it. In either case, when the property is sold, the percentage which the leaseholder does not own or has a loan against will need to be valued in accordance with the RICS Red Book.

Help to Buy

The Government’s Help to Buy Loan Scheme has been running since April 2013 and is open to first-time buyers and home movers of new-build homes in England up to a purchase price of £600,000. The purchaser is lent up to 20% of the cost of the home leaving just a 5% deposit and a lender willing to offer a 75% mortgage.

This not only means that it is easier to raise the funds for a 5% deposit but lenders should also be able to offer more competitive rates than they otherwise would have. In good news for those inside the M25, 2015’s Autumn Statement increased the equity loan it gives new buyers within Greater London from 20% to 40%.

No interest is paid on the 20% (or 40%) loan for the first five years. In the sixth year a fee of 1.75% of the loan’s value is charged. After this, the fee will increase every year using the Retail Prices Index plus 1%.

The loan must be repaid to the Government after 25 years or when the home is sold. The amount that is paid back is determined by the valuation of the property at the time and the owner will require a Chartered Surveyor who is also an RICS Registered Valuer to produce an impartial report. Please email surveying@peterbarry.co.uk or call 020 7183 2578.

 

RELATED BLOG POSTS

Preparing a Reinstatement Cost Assessments (Insurance Valuation)

The process of preparing a Reinstatement Cost Assessment involves a site visit to inspect the property, take measurements and site notes detailing the type and quality of the accommodation, a calculation of the likely reinstatement cost of the property based on the information gathered during the inspection, and the recording ... Read More >>

Don’t forget your License to Alter!

There are many different elements that will need to be considered in order for the vision of your extension to become a reality and it is apparent that a layperson is often unaware what professional help may be required along the way - there are the obvious ones; Architect, engineer and contractor, and to a lesser extent, the ... Read More >>

Help to buy, shared ownership schemes and staircasing

With house prices in some areas of London having risen 10-fold over the last 20 years it is becoming increasingly more difficult for young people to get their foot on the property ladder. Initiatives that have increased in popularity since they were first introduced in 2013 are the Help to Buy and Shared Ownership ... Read More >>

read more posts