The Business Exchange Swindon & Wiltshire Edition 39: Oct/Nov 2018 | Page 28
BUSINESS ADVICE
Buying or selling property?
Government homebuying measures may help
New government figures released recently show reductions to stamp duty
levies are having an impact on the housing market.
Vivienne Haywood
01793 538198
As experienced conveyancers, the legal team
at Optimum Professional Services in Swindon,
have also noticed how the changes are having a
positive effect on the housing market locally.
Over the next five years, it’s estimated that
one million people will be able to get on to the
housing ladder following the changes in stamp
duty: first-time buyers purchasing homes of
£300,000 and under now pay no stamp duty
at all, and those buying properties of up to
£500,000 have benefited from a stamp duty cut.
This measure, coupled with the commitment
made by Chancellor Philip Hammond in the
Autumn Budget to building 300,000 new homes
a year, has given a boost to the housing market,
not just for first time buyers.
At Optimum, we help buyers take advantage
of two government schemes in particular – Help
to Buy and Help to Buy ISA.
Help to Buy includes an equity loan scheme.
This is available both to first-time buyers and
to those who are moving home. However, it is
restricted only to new-build homes.
If you are buying a new property, you will
need to raise 5% of the value as a deposit. The
government will fund a further loan of up to 20%
through the Homes and Communities Agency.
This gives you a combined deposit of
potentially 25% and then you’re in a much better
position to apply for a mortgage with those
lenders who participate in Help to Buy. You
obtain a mortgage of 75% of the purchase price,
which helps to keep your monthly mortgage
payments lower to start with.
The idea behind the Help to Buy ISA is to
help you save for the deposit you need to get a
mortgage. It is open only to first-time buyers
– you cannot have owned a property anywhere
else in the world.
As with all ISAs, the savings are tax free but
the bonus is that the government also makes a
contribution – so you save faster.
If you are a first-time buyer, instruct your
solicitor or conveyancer – such as the legal
team here at Optimum. We will apply for your
government bonus prior to completion – you
can’t apply for it yourself.
The government sets out strict guidelines for
conveyancers when requesting the bonus, and
certain steps have to be taken in order to ensure
the bonus is received in time for completion.
Once we receive the government bonus, it will
be added to the money you’re putting towards
your first home.
Lower stamp duty, Help to Buy and Help
to Buy ISAs are all contributing to a buoyant
housing market, and of course Optimum’s
conveyancing team are on hand to help with any
purchase.
For more information about any property law
matters, contact Optimum via email:
[email protected] or visit www.optps.co.uk
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THE BUSINESS EXCHANGE 2018
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