PRESENTS
HELPING YOU TO UNLOCKTHEDOOR
Supporting partner
nationalhomebuyingweek.co.uk
WELCOME
WELCOME TO NATIONAL HOME BUYING WEEK 2023
Our ambition at First Time Buyer is to try to help as many people as we can on to the housing ladder with the chance to buy their dream home. We know that the home buying process can be very complicated to navigate, especially if you haven’t done it before. That is why National Home Buying Week is so important – we want to help, inform and educate first timers and explain everything in easy-to-understand language, which is jargon free, putting all the information you need in one place to help you on the journey to homeownership. This year, National Home Buying Week ran from 2-6 October 2023, and proved to be highly successful. We now bring you this extra supplement, which we hope you will find useful. At nationalhomebuyingweek.co.uk , you will find our website, which is full of useful information, handy guides and educational videos, plus there are highlighted developments from our partners to inspire you with the homes that are available around the country. There are also podcasts, a webinar with a panel of property-related experts, and a super film featuring three first time buyers who each have a different story to tell about their home buying journey. We really want everyone to experience that special moment when you are finally able to unlock the door of your first home. We are dedicated to help you do just that. With the help of our little mascot, Stickman, who appears in some wonderful short animated videos on our website, highlighting all the key topics in very simple terms, we are sure you will find everything you need to know there. We are also very excited that we joined forces with property finder and content creator Lexie Carducci, who has over 17,000 followers on Instagram and is passionate about property. She gives a
masterclass on how to view a property, visits a lovely development from SO Resi and gives hints and tips, including what questions to ask and things to look out for. She also explains what shared ownership is all about and highlights some hotspots around the country that first time buyers might consider looking at when buying their first home. We would especially like to thank our Supporting Sponsor SO Resi and give a very big thank you, too, to all our partners who have joined with us to make the 2023 National Home Buying Week extra special. I do hope that you enjoy the supplement and spend time on our website discovering all the facts and knowledge you will need when you start the exciting road to buying your first home. I look forward to hearing your thoughts, answering your questions and listening to your feedback. Please do go to nationalhomebuyingweek.co.uk and
discover for yourself! Happy House Hunting
Lynda Clark, Editor, First Time Buyer
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Shared ownership is a Government- backed scheme that helps first time buyers take a first step on the housing ladder. Established over 40 years ago, around 200,000 households already live in shared ownership homes, and the scheme is growing rapidly in popularity as rising interest rates have made it harder for many first time buyers to purchase a home on the open market. WHAT IS SHARED OWNERSHIP? Shared ownership is the most affordable way to take a first step on to the housing ladder. Kay Hill looks at how the scheme works SHARED OWNERSHIP EXPLAINED WHAT IS THE SCHEME? Shared ownership helps lower income individuals and families take a first step on to the housing ladder by buying a share of the leasehold of a house or apartment from an accommodation provider such as a housing association and paying a controlled rent on the other portion. The amount they are able to buy varies according to the family income, the home and the provider, but starts from as little as 10% of the full market value of the
property in the latest schemes. Over time, buyers can purchase additional shares in a process called “staircasing”, which means they can ultimately own the whole home and no longer pay rent. This is a very real possibility – data shows that around 2,000 shared owners staircased to 100% ownership last year in London alone. WHAT IS THE ADVANTAGE?
The biggest barrier to homeownership for many households
is saving up the deposit. According to the
Halifax House Price Index, the average house price in June 2023 was £285,932, which for a family buying on the open market with a 90% mortgage would mean a £28,593 deposit. Buying 25% of
the same house using shared ownership, however, would require a minimum 5% deposit of just £3,574, putting it within reach of far more potential buyers. For buyers in London, the difficulty of saving a deposit is even more acute, with the average £533,057 home requiring £53,306 for a 10% deposit, while a 25% shared ownership share could be accessed with a deposit of £6,663. Many buyers also struggle to borrow enough money from mortgage providers to buy on the open market – with shared ownership you only need a mortgage for up to 95% of the share you are buying, reducing the income that is required. HOW IS IT DIFFERENT TO RENTING? With shared ownership, as well as paying a mortgage, you also pay rent on the percentage of the property that you haven’t bought, as well as a service charge; but there are significant differences between shared ownership and just renting.
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SHARED OWNERSHIP EXPLAINED
• You have complete security; as long as you pay your mortgage and rent, the only time you will have to move is when you choose to – not when a landlord decides to sell. • You have a stake in the value of your home, which may increase in worth over time (although this is not guaranteed). • The rental part of the payment is controlled, so rises are predictable, rather than at the whim of a landlord. Most shared ownership leases peg annual rent rises to the inflation-based Retail Price Index plus 0.5%. However, as inflation has been so high, housing associations have accepted a Government recommendation to cap 2023 increases at 7% (although for- profit shared ownership providers are not bound by this). • Unlike renting, in most cases as a shared owner you are responsible for repairs and maintenance to your home, either through paying yourself (replacing a leaking tap or repairing a boiler) or paying service charges (maintaining communal areas). Newer scheme require providers to pay up to £500 a year for the first decade for certain essential repairs. • Many housing associations allow pets, but you will usually need permission. • There are fewer restrictions. If you rent from a private landlord you may not even be allowed to put up a picture hook, but with shared ownership the home is yours to decorate as you please – so you can paint, wallpaper, put up shelves, add fitted wardrobes etc. However, you will need permission for structural changes such as a conservatory, extension or loft conversion, and there may be restrictions on hard flooring if you live in an apartment. Replacing a kitchen or bathroom may need permission from some housing associations. WHO CAN USE THE SCHEME? Households must have a combined income of not more than £80,000 or £90,000 in London to use the scheme. Shared owners can be first time buyers, people who have sold a previous home and are unable to buy on the open market (perhaps because of a relationship breakdown or a divorce), or those who are selling a home but cannot
afford the kind of home they need (to accommodate a larger family for example) on the open market. Buyers need to be over 18, with
no rent arrears or bad debts, and must be able to afford the legal and other costs involved
in buying a home, and the ongoing costs of mortgage, rent and service charge. It helps to have a good credit history, but some providers are more accepting than others of poor credit as long as you are still able to get a mortgage for your share. WHAT TYPE OF HOMES ARE AVAILABLE? Shared ownership is available right across England on purpose-built new homes, and on secondhand homes known as “resales”. Property types tend to reflect the surrounding area – in Greater London, apartments outnumber houses 33 to one, but in central and northern England the position is reversed with more than four out of five properties being houses. All shared ownership properties are sold as leasehold, although houses (but not flats) can usually be converted to freehold if you eventually own them outright. WHAT’S THE BUYING PROCESS? You can find shared ownership homes through Homes for Londoners, Sharetobuy.com or direct from housing associations websites.You may need to fill in a registration form to check your eligibility. When you find a home you like the look of, contact the provider and arrange a viewing. If you want to go ahead, the provider will ask for a reservation fee of up to £500 to hold the property for you while you have a full financial assessment, which will look at your income, savings and outgoings and will set the percentage of the home that you are able to buy.You will need to provide proof of your identity and detailed financial information at this stage, so make sure you have everything ready. If all goes well
at the assessment you can then arrange a mortgage and instruct a solicitor to handle the conveyancing.
RECENT CHANGES TO SHARED OWNERSHIP
The Government has made changes to shared ownership that are designed to widen access to the scheme, but as the old scheme is being phased out gradually until 2026, you will need to check whether a home you are considering falls under the old scheme or the new one.The changes include: • With the new scheme, buyers can purchase as little as 10% of a property, instead of the previous minimum of 25% (although you must buy the largest amount that the financial assessment says your income can sustain). • The standard lease length on the new scheme is 990 years, up from 125 years. • Buyers can increase their share in 1% increments for the first 15 years without a new valuation (rather than the previous 10% minimum staircasing and requirement for a survey). • Providers must contribute towards essential repairs and maintenance for the first 10 years, but this is capped at £500 a year and only covers things like structural repairs to walls, floors, ceiling and stairs and repairing or replacing sinks, baths, radiators and boilers.You will have to get approval from the landlord that the repairs are essential, use a tradesperson approved by the landlord, pay for the repairs yourself and claim the cost back.
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THE AFFORDABLE ROUTE TO HOMEOWNERSHIP Kevin Sims, Director of Sales and Marketing, SO Resi AFFORDABLE HOMES
As research reveals that the cost of renting jumped by 12% in the UK, the largest year-on-year increase on record, there is an urgent need for more affordable housing options for first time buyers stuck in the rental trap. This message has never been more pertinent than during National Home Buying Week, a week-long initiative designed to help first time buyers on their journey to becoming homeowners. At SO Resi, we take pride in our mission to create affordable housing for first time buyers through two flagship initiatives – shared ownership and Rent to Buy. Shared ownership allows buyers to purchase a share of a property, paying a mortgage on the part that is owned by them, and a monthly rental payment on the share they do not own. Shares start from as little as 25% of the full value of the property, with deposits starting from just 5% of the share. Taking an apartment at our SO Resi Bracknell scheme as an example, a deposit could be as low as £3,825 for a one bedroom apartment, available for £76,500 for a 25% share, with a full market value of £255,000. There is also the option to buy further shares using a process called “staircasing”. Our flagship scheme, SO Resi Plus, allows buyers to staircase at a gradual pace by purchasing an additional 1% share each year. Today, we are here to debunk some myths surrounding shared ownership and to explain why education surrounding affordable housing schemes is more essential than ever before. We receive a fair share of questions from customers who are interested in learning all about shared ownership. For example, our customers often ask who is eligible for the scheme, as a common misconception is that shared ownership is limited to young first time buyers, or those looking to buy an apartment in a city. The truth is that shared ownership is open to anyone who cannot afford to purchase a property on the open market. This means that anyone with a household income below £80,000
SO Resi Bracknell
SO Resi Cambourne
SO Flexi Slough
(£90,000 in London), and who is not already a homeowner, might be eligible to apply for the scheme. We offer a range of shared ownership apartments and homes, including SO Resi Cambourne, with three and four bedroom houses alongside a range of apartments. Here, many of our buyers are growing families who have been stuck in the rental trap for too long, and are now ready to place a foot on the property ladder, as well as couples looking for extra space in a more rural setting. At the end of September, we also launched 42 homes at SO Resi Hendon Waterside. There is a mixture of homes, including two and three bedroom duplexes, which will offer families and young professionals the unique chance to have a spacious home at a more accessible price point in the capital.
This year, we also launched our first Rent to Buy development, SO Flexi Slough. Rent to Buy can provide a foothold in the journey from renting to homeownership, offering tenants the opportunity to rent a property at SO Flexi Slough at below market value for two years, allowing them to save a deposit to purchase the property at the end of the tenancy. During the summer, we launched 55 one and two bedroom homes at SO Flexi Slough, where we saw unprecedented demand with over 400 enquiries from potential tenants. Providing truly accessible routes to homeownership continues to be at the heart of everything we do at SO Resi. To find out more about shared ownership and rent to buy, visit us online at soresi.co.uk
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THERE’S NOTHING LIKE NEW Kay Hill looks at the top 10 reasons to choose a brand new property for your first home BUYING NEW
improvements, such as flooring insulation or cladding can be very disruptive, so it’s good to know that when you move into a new build it will meet the very latest standards and bills will be much lower. 2 PEACE OF MIND New builds come with a 10-year warranty, which will protect you from any major structural defects. The first two years are normally covered by the developer, who will respond to any complaints about snagging. After that, an insurance-backed warranty covers a wide variety or problems that might occur if the builder failed to follow the correct technical standards.Various parts of the building are covered, such as roofs, flues and chimneys, external walls, stairs, windows, doors and foundations, giving you additional peace of mind.
or style, bathroom cabinet colour and other variables, especially if you are buying off- plan.You might also have the opportunity to upgrade from the standard finishes. 5 SQUEAKY CLEAN One of the best things about buying a new build is the fact that everything is indeed new, so you won’t have to scrape someone else’s pizza crumbs out of the oven, scrub grime from the
There’s a lot to think about when you are becoming a homeowner for the very first time – but at least when you buy a brand new home, working out how to combat rising damp or get rid of rodents doesn’t have to be on your worry list! If you want to make the transition to being a homeowner as smooth and simple as possible, then a new build home has many advantages: 1 WARM AND ECONOMICAL It’s easy to be seduced by the thought of a thatched cottage with roses round the door or a Georgian townhouse, but the reality is that the older the home you buy, the more likely it is to be cold, draughty and miserable in the winter – and your first electricity or gas bill could bring with it a very nasty surprise. New homes are proven to be considerably cheaper to run thanks to improvements in Building Regulations over the years – homes sold today will have better insulation, more thermally efficient doors and windows and more efficient appliances than similar properties built even a couple of decades ago.You can get a good idea of how energy efficient a home will be by looking at the energy performance certificate (EPC) that every home that goes on sale (with a few exceptions such as historic buildings) must have. The EPC rates properties from A (the best) to G (the worst). In 2022, 84% of new build properties were given an EPC rating of an A or a B, compared with just 4% of existing homes. In fact, 85% of older homes that were assessed received a rating of C or D, 9% scored an E and the rest an F or G¹. This translates directly into how expensive the home will be to run. According to the latest Watt a Save report from the Home Builders Federation², released in July 2023, those who live in brand new homes can expect to save 55% or £1,628 a year on their energy bills, paying around £1,318 a year instead of the £2,946 average annual bill paid by those in older properties, alongside reducing their carbon emissions by 60%. Upgrading an older home with energy saving measures like cavity wall insulation, double glazing and loft insulation can work out very expensive, and more serious
bathtub or extract pet hair from the carpet. Instead, you will move in to a fresh, blank canvas, with clean
tiling, paintwork, kitchens and bathrooms. There will be no rush to decorate, you can simply move in, unpack and take your time as everything will look perfect just as it is.
3 NOT IN THE CHAIN GANG
When you buy a secondhand property you are likely to be trying to move in on the same day as the owner moves out (and into their new home, currently occupied by someone else who needs to move out and into a new home – and so on). This is called a chain, and it can be one of the most stressful aspects of moving house.You might have all your finances ready and your boxes packed, but all it takes is for the solicitor of the third house along to find a problem, or someone’s mortgage to fall through, and everyone grinds to a halt. With a new build home, the only people involved are you and the developer, so there’s no chain to worry about. Sometimes new builds might be delayed a little, because of bad weather, for example, but you should know in plenty of time when your moving date will be. 4 CHOICES, CHOICES Depending on the developer, and at what stage of construction you put down a deposit, you are quite likely to be able to customise your new home. So, no avocado bathroom suite – unless, of course, you really want one! With a new build you
6 EXTRAS INCLUDED
It depends on the developer, but in many
are often able to choose a colour scheme, flooring, kitchen colour
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BUYING NEW
cases you will find a whole host of extras are included with your new home. Few developers these days hand you a property with splintery floorboards and bare concrete; instead, you are likely to find carpets, tiles and hard flooring provided to make you comfortable from day one. It’s standard to find an oven, hob and extractor, and you could find that your home comes with dishwasher, washing machine, tumble dryer, fridge and freezer as well, saving you all the expense of having to buy these when you first move in. 7 SECURITY AS A PRIORITY New homes also come with higher levels of security. Windows will have locks, and doors will all have up-to-date locking systems that meet the latest requirements from insurance companies, often bringing down the cost of your contents insurance. In apartment buildings you might even find CCTV, a security-conscious concierge or even a sophisticated keyless entry system. 8 SAFE AS HOUSES If you buy a secondhand home, especially an older one, you need to get an electrician to check that your wiring is safe, otherwise you could be at risk from faults and even fires. With a brand new home, you not only have the latest quality in wiring, but also
fire-resistant materials and smoke alarms to keep you and your family safe, as well as circuit breakers to protect you while you are cutting the grass. 9 MODERN LIVING Older homes reflect the way of life that was prominent at the time – for example, in a Victorian home you might have a series of small, dark rooms, including the “front parlour” that was only used for guests, the “morning room” that was more like a family room, and a dining room used for only an hour or so a day. Each room tended to have only one purpose, so families were separated by geography. Most new build homes have egalitarian, family friendly open-plan layouts with break-out areas, so multiple tasks from cooking to homework can take place in a sociable space, facilitating conversation
and creativity. Developers are also aware of the importance of having a home working space, so you are bound to find somewhere to put a desk. Some new builds also have shared spaces and services such as a gym or concierge, cinema room, bookable working areas or meeting spaces so even the smallest apartment can have great facilities (although there will be management charges to cover these extras). 10 BOOSTED BUYING POWER Finally, some Government schemes are only available on new builds, including First Homes, Rent to Buy, Discounted Sales and shared ownership (although shared ownership resales are available). 1 gov.uk/government/statistics/energy-performance- of-building-certificates-in-england-and-wales-july-to- september-2022/ 2 hbf.co.uk/documents/12662/Watt_Energy_Efficiency_New_ Homes_finalv2.pdf
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HOW TO MAKE A HOUSE A HOME By Tori Malone, Senior Interior Designer, INVESTA INTERIORS
You’ve scrimped and saved, and the time is finally here for you to move into your very own home. But with all your money going towards your deposit, new furniture and expensive accessories can sometimes become an after-thought, so turning your dream house into a home can take a little longer. Tori Malone, Senior Interior Designer at INVESTA, shares her top tips on how to make your house feel like home as quickly and affordably as possible… 1. Don’t worry about ensuring everything matches or is brand new. Using different pieces of furniture will add character to your home. If you have vintage pieces, family heirlooms, or something you picked up secondhand, embrace the mix-and-match look. And, if you’re on a budget, there are lots of hacks online so you can use cheaper furniture pieces and create something unique with a bit of DIY. 2. New homes can feel sparse and sterile because of their emptiness and often white walls, so add splashes of colour and pattern. This will soon make your new home feel more welcoming and homely. And if you’re a fan of keeping walls neutral, try contrasting with colourful artwork and soft furnishings. 3. When the times comes to put a splash of paint on the walls, get to know each room’s natural light. The way light fills each room will differ depending on location and window sizes and this can affect how your chosen paint colour will look at different times of the day. Take your time and consider the right colours for the atmosphere you want to create. 4. Whether it’s a sofa, rug, textured wallpaper or throw, textures and fabrics can instantly add warmth to any room, making it feel more like home. For example, pairing a soft velvet sofa with a luxurious deep pile rug and a woollen throw will create depth, the perfect tactile feel, and, of course, comfort. 5. You want your new place to feel like home as soon as possible, so instead avoid the dreaded cold “big light” and
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INTERIORS
instead prioritise unpacking table and bedside lamps. These will help add soft ambient lighting and make any room feel instantly cosier. We recommend you do this in the rooms you want to relax in first, such as the living room and bedroom. 6. Although sometimes an initial high expense, adding window dressings such as curtains, voiles and blinds softens windows in cold, empty rooms instantly. They’re also a great way to add warmth and privacy to your new home – especially as we enter the colder months. Choose something patterned or textured for added character too. 7. Whether you like real plants or faux, greenery is a great way of adding interest and colour to a bland room. Bringing the outside in is great for our mental and physical health and is an easy way of adding texture. Try a fig tree in a woven basket or a vase of dried foliage. 8. Your new home should also reflect you, so display your treasured knick-knacks and ornaments as soon as possible. Anything from your holiday souvenirs to your favourite framed photos is a great way of adding your own personality to your new house. If you’re looking to furnish your first home with a range of design-led pieces both quickly and on a budget, then our furniture packs could be just for you. Our packs are tailored for you and your home and can offer you a selection of great furniture pieces for your living room, dining area and bedroom along with accessories and artwork too. There are no long waits for varying deliveries, and it’s all installed and styled professionally! For more information on our interior design services and furniture packs please visit vesta-london.co.uk and head to INVESTA
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SAVE AND BUY WITH LONDON LIVING RENT If you can’t afford to buy your first dream home at the moment then London Living Rent might be the answer to help you eventually get on the property ladder LONDON LIVING RENT
WHAT IS LONDON LIVING RENT? London Living Rent is funded by the Mayor. The idea behind London Living Rent is that it is designed to help people to switch from renting to shared ownership. London Living Rent homes are for middle- income households who want to build up savings to buy a home through shared ownership. Landlords are expected to actively support their tenants into homeownership within 10 years. London Living Rent homes will be offered on tenancies of a minimum of three years. By offering a below-market rent, tenants are supported to save and given the option to buy their home on a shared ownership basis during their tenancy. HOW MUCH RENT WILL I PAY FOR A LONDON LIVING RENT HOME? The amount of rent you pay will vary according to where you choose to live in London. Across London, the average monthly rent for a two bedroom London Living Rent home is around £1,077 a month, almost three quarters of the average market rent.The Mayor publishes benchmark London Living Rent levels for every neighbourhood in the capital, which are updated annually. These are based on a third of average local household incomes and adjusted for the number of bedrooms in each home. So, to ensure family-sized London Living Rent homes are affordable, the rent for a three bedroom home will be set at no more than 10% above the two bedroom rent. AM I ELIGIBLE FOR A LONDON LIVING RENT HOME? To be eligible for a London Living Rent home, you must: 9 Live or work in London 9 Either have a formal tenancy (for example, in the private rented sector) or live in an informal arrangement with family or friends as a result of struggling with housing costs 9 Have a maximum household income of £60,000 9 Not own any other residential home 9 Be unable to currently buy a home (including through shared ownership) in your local area
RENT TO BUY Outside of the London the scheme is known as Rent to Buy. It gives tenants in England the chance to rent a home at Intermediate Rent, providing them with the opportunity to save for a deposit over time to purchase the home.
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SPOTLIGHT ON SHARED DIRECTION CONVEYANCING Shared Direction Conveyancing is the only law firm in the UK dedicated solely to acting for purchasers of new build shared ownership properties LEGAL
comparatively small proportion of the overall housing sector, and most solicitors still see shared ownership conveyancing as more complex than “ordinary” conveyancing. Indeed, those solicitors aren’t wrong, shared ownership conveyancing can be more complicated for a number of reasons: Shared ownership leases contain many provisions that you won’t find in other leases Mortgages must be approved by the housing association the property is being purchased through, and lenders have more detailed requirements The legal paperwork for new build properties is extensive There are some mortgage lenders who only have a limited number of conveyancing firms on their panel that they trust to act for them on shared ownership cases. A buyer who instructs a firm of solicitors which doesn’t specialise in affordable housing may therefore end up paying two sets of legal fees – their own solicitor’s
Buyers can be distrustful of using a firm of solicitors who has been recommended, fearing that they won’t be sufficiently independent. Although this is a natural concern and people may often wish to use a more local firm, buyers should understand that their solicitor is duty bound to act in their best interests and is acting for them not the seller. Buyers should also keep in mind that, as not all regular high street solicitors are familiar with shared ownership matters, they will probably charge more for the conveyancing and generally take longer when dealing with such cases. Also, because the paperwork tends to be similar for all plots on a development, it is more efficient for a solicitor to act for multiple buyers on a new build estate. Therefore, using a firm which specialises in shared ownership, especially one which is on a “panel” as explained above, means that you will be looked after by an expert who will most likely charge less and generally proceed quicker than if you used a conventional high street solicitor; you are also more likely to achieve
We were previously the new build shared ownership department of Direction Law which, having dealt with some of the earliest shared ownership purchases in the late 1980s, grew to become one of the largest specialist affordable housing solicitors in the country. We have large specialist teams across our three offices in the South East, South West and the Midlands and in the 2022/23 financial year acted for over 3,800 new build shared ownership buyers across the country. Now, as a stand-alone niche firm, we continue to work closely with and are on the recommended panels for a plethora of dedicated housing associations and selling agents and over the past year our offices have worked with over 180 different housing providers.We are also recommended by a large number of specialist mortgage brokers with whom we have built close working relationships over many years. Walk around most towns and you will find a firm of solicitors offering conveyancing services. However, the vast majority of these will have little or no experience of affordable housing schemes such as shared ownership. Although it has been around for many years, it is only in more recent years that shared ownership has become more prevalent. However, affordable housing is still only a
fees for the conveyancing and their lender’s legal fees too. Housing associations, and the mortgage brokers they work with, will also often have panels of solicitors that they recommend who specialise in shared ownership.
the housing association’s
purchase timelines.
If you are buying a new build shared ownership
property, Shared Direction Conveyancing is your ideal choice of law firm to share your journey into homeownership, as we have the experience and expertise to guide you through the process as quickly and simply as possible. For further information visit sdc-legal.co.uk or for an instant quotation call 0808 273 0273
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INTRODUCING OWEN PAULO Emerging from Direction Law (the former largest firm providing affordable housing conveyancing) comes Owen Paulo Legal Limited, a new conveyancing law firm solely specialising in shared ownership resales and staircasing LEGAL
leases have evolved over the years, we have to ensure that mortgage lenders’ requirements are met in respect of the lease. The same goes for increasing your share in the property, also known as “staircasing”. Many standard conveyancing firms may have only seen staircasing when acting on a transaction that includes it as a related aspect; however, Owen Paulo has a dedicated staircasing team that handles it as its own individual case. Whether it be increasing by a specific percentage, or staircasing up to 100% ownership, our team can handle it all. Although the process of staircasing does not take as long as a resale transaction (on average) it can be just as complex, and it very much depends on how a client is funding their staircasing, what type of staircasing they are proceeding with, SDLT payable and what housing association they currently share ownership with. As well as purchasing further shares, our staircasing department also acts on lease extensions, transfers of equity and
remortgages for shared ownership (and other affordable housing schemes). Proceeding with a solicitor that is not well versed in resales shared ownership or staircasing can have detrimental effects for you later down the line. It can cost you more in fees, take longer to complete, or if there are points that have been overlooked or registration of your ownership has not been lodged properly, it can delay your attempts at selling, staircasing or remortgaging. We appreciate that this is one of the most important moments of your life, and we guarantee we will treat it as such. So, if you are looking for the only specialist law firm in the country solely dealing with resale shared ownership conveyancing and staircasing conveyancing, look no further than Owen Paulo Legal who are here to assist you in your ownership of pre-loved property. For more information please visit owenpaulo.co.uk or for an instant quotation please call 0808 196 7010
Named after two of the partners (Lucy Owen and Sebastian Paulo) and comprising the same team members from the Resales and Staircasing departments at Direction Law, our conveyancers hold over 20 years of experience within shared ownership and have seen the evolution of these legal services over the years, from what was simply an offshoot of new build shared ownership to an ever-increasing alternative to new build shared ownership. We have a passion for pre-loved affordable housing, and this translates into our conveyancing. In our opinion, new build shared ownership gets all of the attention and it’s time for resales and staircasing to step out from behind and come into the spotlight! Our specialist teams, based at our office in Canterbury, have helped over 2,000 clients buy, sell or increase a share in their property within the last financial year, and we are recommended on many housing association and financial adviser panels up and down the country.There are many conveyancing solicitors out there, and you can instruct whoever you choose to; however, it can be a complex and daunting process, especially when it comes to resale shared ownership and staircasing transactions. As the property market continues to evolve, there is an increasing need for specialist legal services that cater to the unique requirements of these transactions. Even with the growth of affordable housing over recent years, many standard conveyancing firms consider shared ownership to be more complicated (and frankly they are not wrong!). A resale transaction, whether you are buying or selling, does take longer to complete on average and can be more complex. This is due not only to the fact that resale shared ownership properties are always leasehold, but as well as there being a seller and buyer, there is also the involvement of a third party – the housing association – to liaise with. Due to a housing association’s involvement in the process, including assistance in finding a buyer and approval of the buyer’s mortgage offer, a shared ownership lease can also contain clauses that are not seen in your “everyday” lease. In addition, as shared ownership
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CREDIT
DON’T LET A POOR CREDIT SCORE TURN YOUR MORTGAGE DREAMS INTO A NIGHTMARE James Jones, Head of Consumer Affairs at Experian, looks at why your credit score is so important
best possible chance of success.” EXPERIAN CREDIT SCORE Experian’s score runs on a scale of 0-999 and is split into five bands: Very poor, Poor, Fair, Good, Excellent. Around 30% of Experian customers have an Excellent score. If your score is Fair or worse, your borrowing options may be limited.You can regularly check your score for free on the Experian website. MAKE SURE YOU’VE BUILT A CREDIT HISTORY A credit history can be thought of as a “file” of your recent borrowing behaviour. Some people have “thick files”, some have “thin files”, and some do not have a file at all. If you have never borrowed, you may have a
thin or non-existent file. This means lenders may struggle to predict how reliable you’ll be in the future. One way to tackle a thin file could be to take out a “credit builder” credit card, use it for occasional purchases and repay the balance in full each month.This could help you build a thick file in three to six months, depending on whether you have any other financial accounts on your report. Eligibility checking tools, such as on the Experian website, can help you find card deals you’re most likely to be accepted for, reducing your chances of applying for one you’re unlikely to be accepted for. HOW TO REPAIR A POOR CREDIT HISTORY While no two lenders have the same criteria, there are common factors that many agree
Buying your first home is incredibly exciting! From viewing your shortlisted properties, the butterflies that you feel submitting an offer, to the anticipation of waiting for a response from the estate agent. There’s nothing more thrilling than your offer being accepted – but that excitement could quickly turn to despair if, at the 11th hour, the mortgage lender refuses your application because your credit score isn’t up to scratch A poor credit history is one of the most common reasons for mortgage application problems. That’s why it is important to review your credit report and score before you start your new home search, giving you time to get your credit score in great shape. WHAT IS YOUR CREDIT SCORE? Your score is a three digit number that summarises your creditworthiness. It helps lenders determine whether you’re likely to keep up your payments.While there’s no universal score, public-facing scores are available to help guide you on how your past track record shapes up in the eyes of lenders, which can help you discover where you could make improvements. One such guide, the Experian Credit Score, is calculated using your Experian credit report, which many lenders consult.Your credit report covers the past six years and plays an important role in lending decisions. Experian’s James Jones explains, “If you’re planning to apply for a mortgage soon, it’s important to check your credit report early in the process. “If you do find a problem or something that needs work, you can address it before you invite the mortgage lender to put your report under the microscope.You might also identify other ways to improve the picture your credit history paints of your financial track record, to give your application the
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CREDIT
1 Previous occupants of your address do not affect your credit score It is a common misconception that you are financially connected to someone you’ve simply lived with or who lived at your address in the past. In fact, you only become financially connected to someone else if you’ve had joint credit, such as a joint bank account or loan. Credit cards don’t count. 2 Credit reference agencies don’t decide who gets credit The three main credit reference agencies compile and store credit reports securely and make these available to lenders, with your permission, when you apply for credit. The agencies don’t make lending decisions; that’s up to lenders, who check the information in the report along with other information such as details from your credit application. 3 You do not have one single credit score Each lender uses a unique method to calculate your credit score based on their own experience with customers and on their lending policies. Some even use a different formula for different products, such as mortgages, personal loans and credit cards. Guide scores, such as the Experian Credit Score, are also available to the public. 4 There is not a credit blacklist Credit reports are simply factual and the majority of the information credit reference agencies hold is actually positive. Even if your credit history includes past missed payments or other negative information, you’ll usually be able to find at least one lender willing to say yes. You’ll probably pay extra though! 5 Checking your own credit report or credit score cannot damage your credit score You can do this as often as you like. Only when lenders check your report to assess a credit application is a “hard” footprint recorded that can affect your future score. That’s why it’s sensible to limit and space out your applications, and to use a credit eligibility service to help you shop around without collecting multiple hard footprints.
on. If you have defaulted on previous credit or been taken to court for non-payment of a debt, it’s going to be much more difficult to qualify for a competitive mortgage deal. You’ll be seen as a higher risk customer, which is likely to reduce your options to more expensive deals. It will help if you have repaid any past debts and made sure your credit report is updated to reflect this. And if you got into difficulties because of unfortunate circumstances, such as losing your job, suffering an illness or going through a messy break-up, you can explain this on your credit report using a “notice of correction”. Simply send your notice (maximum of 200 words) to each of the three main credit reference agencies (Experian, Equifax and TransUnion) asking for it to be added to the credit reports they hold about you. TOP TIPS TO HELP YOU GET YOUR FINANCES AND YOUR CREDIT HISTORY READY FOR A MORTGAGE APPLICATION James Jones added, “Mortgage lenders will put your financial behaviour under the microscope, especially transactions in the months leading up to the mortgage application. They will be looking to establish two main things: your financial reliability (your credit score) and your ability to meet future mortgage payments based on your income and spending.” Check your monthly budget so you have a good idea not only of your income but also your expenditure, as that will also be considered when the lender decides how much you can borrow. Have your paperwork together. Lenders may ask to see bank statements, payslips and P60 to support your application. Self- employed borrowers will need to supply their
Mortgage lenders look very closely at your existing borrowing. If you have debt on cards, loans and other credit, paying down these balances in the months leading up to your mortgage application could help your application. Try to avoid opening any new accounts that involve a hard credit check in the three to six months before you submit your mortgage application. You don’t want to appear overly reliant on credit, or even give the impression that you’ve borrowed some of your deposit from another lender. Take advice.There are thousands of products on the market from a huge range of lenders. Don’t focus solely on the interest rate as some can carry big fees that could erode the overall value. For example, those with a smaller mortgage may be better to opt for a deal with fewer or no fees. If you have had problems with credit in the recent past and your score is not great, considering getting guidance from an independent mortgage broker, such as L&C Mortgages, to help you find the best deal for your circumstances. experian.co.uk
tax self-assessment or accounts depending on the circumstances. Experian’s mortgage comparison service allows you to compare options from over 90 lenders in the market in under two minutes and provides access to both broker and direct-to-lender exclusive mortgage deals. Lenders will carry out a credit check and will also typically credit score your application. If you’re concerned that there could be a blemish on your credit report or feel there may be steps you can take to strengthen it, review your report before your mortgage lender puts it under the microscope – especially given that some lenders have been tightening their lending criteria. Obvious issues, such as an old debt not showing as paid or even small anomalies like the way your address is formatted, can delay or even completely derail a mortgage application, so ask for them to be corrected. Register to vote at your current address, which helps confirm your identity to lenders and is widely seen as a sign of stability. Ask for any outdated financial links to other people to be removed, such as an ex- partner. Otherwise, any financial problems they’re having could hurt your application.
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ASK EMILIA... MY TOP TIPS WHEN APPLYING FOR A MORTGAGE Emilia is the Sales Director at Metro Finance, the largest shared ownership mortgage provider. Metro Finance helps around 2,400 shared ownership buyers each month, working with more than 90 housing associations to make the process for the buyer as simple as possible, and helping to innovate the shared ownership product. Emilia has worked with Metro Finance for over 10 years, specialising in shared ownership LEGAL
or how long you intend to live in the property, or how much you spend on your holidays – but actually on a personal level they aren’t interested! This is to gather the correct information to ensure they are recommending the most suitable and affordable product for you. Buying a house is a major investment and commitment for you, and it’s important that you are recommended a suitable product. If you know there is a potential issue, don’t wait for someone to find it, let the adviser know upfront. This will make the process much quicker, and will ensure that they go to the right lender first time around. Otherwise, it could cost you your precious time or money switching lenders. Don’t be afraid to be honest. 5.If you don’t understand anything, ask – Your adviser and your solicitors are working for you. If there is something that you don’t understand, make sure you ask questions. Everyone is there to help guide you through the process. This will be one of the biggest commitments, if not the biggest commitment you’ll ever undertake, so it’s important you fully understand what you are entering into. The process can be much more stressful if you are confused about what is happening. 6.Know your budget – Think carefully about what you can afford when factoring in your other costs and make sure it’s comfortable for you. It is important now more than ever! Buying a house will always feel daunting and unnerving. Even the most experienced within the industry feel this. So utilise the experts who are helping you navigate
the process, and allow them to ease the pressure. It’s what they’re there for. And always look forward to the future when you’ll have those precious keys in your hands! metrofinance.co.uk
Every day we help first time buyers secure their first property. When I brought my first house, even though I had experience within the industry, it was still an unnerving time for me as I applied for the mortgage and went through the process with the solicitors. And that was with knowing everything to expect!
If you’re planning to buy a house, these would be my top tips to prepare yourself:
1.Know your credit profile – Get a copy of your credit file. Many offer you the ability to sign up for a one-month free trial, and you can download a PDF to send to your adviser. This will alert you to any outstanding issues. 2.Understand your income – Lots of people have income that includes shift allowance, flexible allowances, overtime etc. It’s important to understand what parts of your income are guaranteed and what can vary. All lenders will treat income differently, so it’s important to give your adviser accurate information so they can maximise your lending. 3.Be ready with documents – You will need to provide bank statements, payslips, ID etc. So, do a check early on; does your driving licence match your current address? Is your passport in date? Make sure you save posted bank statements, or that you can download your statements online from your online banking (most allow you to do this). Things can move very quickly in the housing market so its important to be ready so you don’t lose your dream property. 4.Be open and honest with your adviser – It might feel like your adviser is being intrusive when they ask about whether you are expecting any more children,
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FOR SALE
FOR SALE Find your dream first home with National Home Buying Week
ACTON Renaissance West BE WEST presents a contemporary collection
of one and two bedroom apartments located in the thriving location of Acton and situated within walking distance of four tube lines, providing easy access into the city via an array of transport connections. Each apartment boasts
a spacious open-plan layout with modern appliances. Landscaped communal courtyards are accessible for everyone to escape the hustle and bustle, offering a vibrant community for families and couples. Private balconies and courtyards are available to all apartments enabling you to surround yourself in a tranquil environment. bewest.co.uk
BUCKINGHAM St Rumbold’s Fields
St Rumbold’s Fields is a popular established community with a current release of two and three bedroom homes in the market town of Buckingham. Living here you’ll be well connected to plenty of amenities – the town centre is just a short walk away where you will find a range of shops, pubs and restaurants to enjoy. These homes are great for first time buyers and downsizers alike, with adaptable spaces to suit your needs, while being surrounded by green open spaces. barratthomes.co.uk/new-homes/dev000713-st- rumbold’s-fields/
*Based on a 25% share of the full market value of £518,000
AYLESBURY Orchard Green
Orchard Green is an exclusive village at the award-winning Kingsbrook development in Aylesbury, offering three and four
bedroom homes. Surrounded by green open space, many of the homes overlook parklands, ponds and allotments. Recognised as a “Building for a Healthy Life” development, the homes feature spacious, bright and airy living spaces with open-plan kitchen/diners and French doors leading to a rear garden. You can reach Aylesbury’s bustling town centre in less than 10 minutes by car, where you will find all the amenities, shopping and culture you could need, and you can get to London by train in under an hour at peak times. dwh.co.uk/new-homes/dev002382-dwh-orchard-green-@-kingsbrook/
ASCOT Sunninghill Square If you’re looking to settle down in an area that has it all – beautiful landscapes, a rich heritage and excellent local amenities – then look no further than Sunninghill Square. Just a five-minute drive from Ascot, Sunninghill has been named as one of the top
FLEET Hareshill
This new collection of one and two bedroom apartments will be ready to move into for Christmas at Hareshill in Crookham village, near Fleet. Many of the apartments benefit from bright bay windows, balconies or patios as well as en suites and undercroft car parking. They also come with integrated appliances in the kitchen, flooring and fitted blinds to the windows. Set in a picturesque countryside location, but within easy reach of Fleet and the M3, the apartments offer prospective buyers the perfect work-life balance. The open space of Edenbrook Country Park and the sports facilities of Hart Leisure Centre are both just a short walk away. abrihomes.co.uk/properties/hareshill
10 places to live in Berkshire. And it’s easy to see why; the high street, which is just a short stroll away, is popular with locals for its selection of independent shops and delicious restaurants. And for those wanting to venture further afield, the excellent transport links from Sunningdale and Ascot railway stations will be very handy as there are direct connections to London Waterloo and Reading in less than an hour. The one and two bedroom shared ownership apartments include integrated appliances in the kitchen, fitted blinds to the windows, a video door entry system and a balcony or patio. abrihomes.co.uk/properties/sunninghillsquare
*Based on a 25% share of the full market value of £375,000 *Based on a 40% share of the full market value of £250,000
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