First-Time-Buyer-August/September-2016 by The Ultimate Guide Company

the Ultimate Guide to... GETTING ON THE LADDER, THE PROPERTY MARKET AND HELP TO BUY August/ September 2016 £2.95 firsttimebuyermag.com

WHAT IMPACT WILL BREXIT HAVE FOR FTBS

HEAD CHEF LERRICO MESSINA CREATES SALADE FRISEE AUX QUINOA

A NATIONAL CAMPAIGN TO HIGHLIGHT

WIN!

A NIGHT’S STAY AND DINNER AT THE DOUBLETREE BY HILTON ON THE THAMES WORTH £350

GET ON THE LADDER WITH HELP TO BUY

“Work out your finances before you take the plunge” Sara Damergi TV presenter

CONTENTS

AUGUST/SEPTEMBER 2016 / ISSUE60 / FIRSTTIMEBUYERMAG.CO.UK

What’s in… 63

Affordable homes

Sisters, Alexandra and Victoria Webb had been renting in Clapham whilst saving for a deposit but due to the rising costs of housing their options were limited. Then they found out about shared ownership and now have bought a 25% share of a two bedroom apartment at Octavia’s Walpole Lodge in Putney.

HOMEPAGE

11 FTB Loves...

20 The View: Sara Damergi

Starting a new series of some of our favourite hot buys.

Make the most of the summer sun with these lovely outdoor accessories.

14 At home with... Oliver Peyton

a foot on the property ladder. Kay Hill assesses the scheme and how it is working.

TV presenter Sara has had a fascinating career and renovated her own properties too. She is currently one half of the presenting team on a new Channel 4 show, Coast v Country. She talks to Lynda Clark about her new series, her home and gives some good advice to first time buyers.

12 Living

Oliver is founder and chairman of Peyton and Byrne and is a restaurateur, a judge on the BBC 2 series Great British Menu and author

FEATURED

of two cookbooks. He talks to Lynda Clark about his interesting career and property experiences.

16 House Hunter We try and find Liam Jennings and Nick Badu their dream home in east London.

24 Help to Buy – A real success story The Government’s Help to Buy scheme is proving to be a resounding success as more and more people get

28 Getting on the ladder with shared ownership There are still many misconceptions about how shared ownership works. A week long national campaign is returning for its fourth year to raise awareness of the affordable alternative to homeownership.

18 Developer’s doctor

70 What you need to know but didn’t know where to ask!

Tim Seward, Head of Property Sales at Circle Housing, answers your property questions.

Understanding exactly what it means to buy a leasehold property when you buy your first home.

First Time Buyer August/September 2016

CONTENTS

SARA DAMERGI, PAGE 20

THERE IS SO MUCH REGENERATION GOING ON THAT AREAS WHICH MIGHT SEEM RUN DOWN NOW ARE ON THE UP.

20 Sara Damergi

HOMEMAKER

76 Finance Kay Hill looks at the pros and cons of the latest 100% mortgages that have just been introduced.

FOR SALE

78 Market Following Brexit, Ginetta Vedrickas examines the impact this will have on first time buyers.

59-63 The best FTB properties.

80 Agony Agent 68 First Home, First Meal Lerrico Messina, Head Chef at Le Restaurant de PAUL, creates the perfect salade frisee aux quinoa. We test the best BBQ food from the UK’s top supermarkets.

REGULARS

All your property questions answered by our panel of experts.

83 Buyer’s Guide Check out FTB’s Buyer’s Guide, which walks you through the property process.

88 10 legal terms every first time buyer should know Beaumont Legal explains the key legal terms you need to be aware of when buying your first home.

Competition Win a night’s stay at DoubleTree by Hilton plus dinner at Terrazza on the Thames at Columbia, Docklands, worth £350.

91 Directory Where and how to contact your Help to Buy Agents or providers.

98 Last word 42 Hotspot We look at Cambridge as a place to live.

72 Mortgage Clinic David Blake of Which? Mortgage Advisors answer your mortgage related questions.

74 Credit Clinic The latest in our series in which Experian’s credit expert, Joe Green answers your questions about all things to do with your credit.

First Time Buyer August/September 2016

Blogger Joanna Ledbury explains how in the hope of affording her first home she decided to look a little further afield where homes were much more affordable.

EDITOR’S LETTER

EDITORIAL 020 7258 1777

Editor-in-Chief SARAH GARRETT sarah@firsttimebuyermag.co.uk Editor LYNDA CLARK lynda@firsttimebuyermag.co.uk Editorial Assistant DAWN HARKER

Creative Director RYAN BEAL

Sub Editor MICHELLE MOON LIM

Contributors ADELE BARKER, DAVID BLAKE, RACHEL COLGAN, JOE GREEN, KAY HILL, LAURA DEAN-OSGOOD, BECKY MUNDAY, ROGER SOUTHAM, GINETTA VEDRICKAS A D V E RT I S I N G 020 7258 1777

Director of Advertising/Exhibition Sales LYNDA CLARK

lynda@firsttimebuyermag.co.uk Special Events NAOMI BENNETT – First Time Buyer Home Show – First Time Buyer Readers’ Awards naomi@spmgroup.co.uk

Welcome It’s been quite a summer so far and although the weather hasn’t been quite as warm as many of us would have liked, I am sure that the political situation and the football has been taking up a lot of our spare time. I know many ftbs will be concerned about the impact Brexit will have on buying a home. On page 78/79 we look at the situation and give you an overview, which should help. Although shared ownership has been around for a long time there are many first timers who do not fully understand how it works. Shared Ownership Week, which runs from 15- 21 September is a national week-long campaign to raise awareness and help homebuyers understand the scheme. Do go to pages 28/38 to find out more about it. We are very excited to let you know that we have two FTB Home Shows planned. The first, in partnership with Help to Buy NW, is on September 17 in Manchester – the true powerhouse of the North and a real property hotspot. Next up is our annual Show in central London on October 8 at The Business Design Centre, Islington. This is a real chance to meet housing associations, developers, legal and financial experts plus find out about the Help to Buy scheme. It is free to attend and useful seminars run all day - so do go to ftbhomeshow.com and register now. I hope you find this issue packed full of useful information to help you buy your dream home. Until next time, happy housing hunting

BREAKING NEWS Accounts DAVID SELF david.self@ultimateguidecompany.com

Congratulations to Gavin Barwell MP who has been appointed as the Minister for Housing and Planning

Managing Director SARAH GARRETT sarah@firsttimebuyermag.co.uk Public Relations RACHEL COLGAN

firsttimebuyeronline

@firsttimebuyer

rachel@building-relations.co.uk SUBSCRIPTIONS 020 7258 1777

EDITOR’S PICKS…

SWITCHBOARD 020 7258 1777 FAX: 020 7258 1787 THE ULTIMATE GUIDE COMPANY LTD, 37 IVOR PLACE, LONDON NW1 6EA All advertising copy for August/September 2016 must be received before 15 July 2016. Send all copy to: lynda@ firsttimebuyermag.co.uk The content of this publication, either in whole or in part, may not be reproduced, stored in a data retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without prior permission from the publishers. Opinions expressed in First Time Buyer magazine are not necessarily those of the publishers. © The Ultimate Guide Company Ltd 2008-2016. The Ultimate Guide Company Ltd t/a First Time Buyer magazine will take no responsibility for any loss/ claim resulting from a transaction with one of our advertisers/media partners.

The costs of this part buy/part rent scheme can be less than renting on the open market Julie Stafford Get on the ladder with shared ownership, Page 28

Know the area where you want to buy, spend time there and really explore it. Oliver Peyton At home with, Page 14

Buying a shared ownership property with my sister has proven to be very cost effective Alexandra Webb Real Life, Page 64

Brexit worries haven’t dented first time buyers’ appetite to own their own home Adrian Gill, What Brexit means for first time buyers, Page 78

I had to first face the reality of not buying exactly where I wanted to. Joanna Ledbury Last word, Page 98

First Time Buyer August/September 2016

LETTERS

Mailbox MAKING A COMPLAINT As a first time buyer I obviously had no experience when it came to purchasing my new apartment. I bought a shared ownership flat and the housing association couldn’t have been more helpful but when it came to the solicitor it was quite a different story. I have heard some horror stories but never thought things could be that bad! Due to my solicitor I very nearly lost the sale, which caused me a great deal of stress. He never returned my phone calls or replied to emails, forgot to post me important documents, which meant that I nearly lost my mortgage offer, went on holiday for two weeks without telling me and left his secretary to sort out the problems. She in turn gave me the wrong information, which was disastrous. I have moved in now but wondered if there was anyone I could complain to as I would hate for anyone else to experience what I did. Gigi Mariyam FTB: Your story sounds like a nightmare and if you want to complain about your solicitor’s conduct or work, you should go to the Solicitors Regulation Authority. They work alongside the Office of Legal Counsel. The service is free and they will help you if you have any of the following complaints: the solicitor caused unreasonable delays; gave inaccurate or incomplete information; did not keep you fully informed; or did not do what you instructed them to do. Before you go to them you must first make a written complaint to the solicitor and give them eight weeks to come back to you. The Legal Ombudsman’s website is legalombudsman.org.uk or you can phone their helpline on 0300 555 0333.

WRITE TO US! Please send us your questions, comments and suggestions concerning property, or the articles in First Time Buyer magazine. First Time Buyer Letters, 37 Ivor Place, London NW1 6EA lynda@firsttimebuyermag.co.uk

QUESTIONS FROM LENDERS I am nearly at the point of being able to start house-hunting for my first home. I have been told that it would be advisable to see if I can get a mortgage before I start. Having never done this before could you tell me the sort of thing that lenders will need to know? Tim Barnet FTB: It is a great idea to find out if you can get a mortgage before you start your search for your new home. As well as looking at your income, lenders will

This issue’s star letter wins a Judge Sabatier chefs knife. The range is designed with the professional and home chef in mind and the stainless steel high specification blades make cutting, slicing and carving safe and easy, whilst still remaining balanced. The traditional styled handles have soft curved edges and the Sabatier endorsement assures that each knife is designed with the professional Sabatier standard of material, weight, balance and safety in mind. Covered by the Judge 25 year guarantee the knives are also dishwasher safe. Chefs knife, £32, Judge, judgecookware. co.uk or call 0117 940 0000

FINANCIAL ADVISOR A HELPING HAND My daughter is finding it very difficult to raise enough for a deposit. I would like to help her but I really don’t know what is the best option. Should I just give my daughter the money as a gift or would it be better to set it up as a loan? Jan Kelly FTB: If you decide to give it as a gift and you die within seven years your daughter might end up paying inheritance tax on the gift. There may also be some tax implications if you lend her the deposit and

charge her interest. If you do decide to give her a loan, then you would need to get legal advice and draw up a document confirming the terms of the loan. For example, is the interest to be paid monthly or when the property is sold and what would happen if you needed the money back. It is important though that when making her mortgage application she tells them that you have provided the deposit.you needed the money back. It is important though that when making her mortgage application she tells them that you have provided the deposit.

also want to check your credit history so they can see how you’ve managed any borrowing in the past. That means you’ll have to let them know about any credit cards or loans you’ve had and whether you missed any repayments. You will also have to show them six months’ worth of bank statements, or three years of accounts if you are self-employed. It may also be a good idea to check your credit rating before you start. If you want help understanding how credit referencing works or you would like to get your rating, go to experian.co.uk

I have been considering getting help from a financial advisor. Can you tell me what I might expect from them, or would I be better off trying to get a mortgage on my own? Alice Stevens FTB: There are three ways in which you can pay for financial advice. Firstly, you can pay the advisor a specific rate, which will either be an hourly rate or a set fee. Or they can work on a commission basis whereby you pay the advisor indirectly through commission, which is deducted by the product

provider from the mortgage you get from them. Finally, there is a combination of both fees and commission. Financial advisors have access to all the different mortgages available, but I suggest you speak to your own bank first to see if it can help. If you get really stuck, then talk to a financial advisor, but make sure you know the costs involved before they start working on your behalf.

VISIT OUR WEBSITE For everything you need to know about buying for the first time, go to firsttimebuyermag.com

First Time Buyer August/September 2016

NEW SERIES

FTB

s e v o

What’s hot in the shops? Always on the lookout for exciting and innovative new ideas and accessories that will help create the perfect space, here are our favourites this issue

Find a Scent you Love These stylish candles come in 12 gorgeous scents – one for every month. The Landon Tyler debut collection offers a memorable fragrance for you and your home. Made from the highest quality ingredients, each has been chosen for its clarity and longevity of scent. Fragrances include Chesil Beach, Pink Cashmere, Winter Woods and our favourite Blackberry Souffle. Candles, £8; diffusers, £10 landontyler.com 0844 335 0252

Let’s Twist Again Spiralisers have become a major player in the kitchen. Transforming fruit and vegetables the Zyliss spiraliser has been specially engineered to create ribbons and spirals without the need for cumbersome blade changes and it also reduces waste. It features a screwin food pusher, which drives food into the path of the blades. As the pusher is turned, it gradually screws into the base until everything has been spiralised. Simple to clean and dishwasher safe it also comes with a 5-year guarantee. Zyliss spiraliser, £12.99 zyliss.co.uk

Ditch the C ooler If it’s good enough for Beyoncé and Cara Delevingne then it’s certainly a winner! You can enjoy your favourite hot or cold drinks anytime, anywhere with this stylish Corkcicle Canteen from Root 7. It is triple insulated with easy-grip sides and a non-slip bottom. Drinks will stay cool for up to 25 hours and hot for up to 12 hours. Available in small, medium and large and in a variety of vibrant colours including pink, copper and turquoise. Canteen, from £17.99 root7.com

The Mad Hatter’s Tea Party!

Whether you are looking to host a quintessential afternoon tea or add a cocktail twist, this eclectic art deco inspired china is just pure fun! Teapot, £34.99; green teacup and saucer, £14.99; pink teacup and saucer, £14.99; 3-tier cake stand, £39.99, Lakeland lakeland.co.uk

First Time Buyer August/September 2016

Homepage LIVING

The Great Outdoors Enjoy the summer sun and spend time in the garden, at the beach or in the park and make the most of the warm days and balmy evenings

Bedgebury rattan table, £300; Bedgebury rattan chair, £200; acrylic jug, £18; four glass jars with straws, £25; chip and dip tray, £12; dinner plate, £8; bowl, £6; fishermans tealight holders, £18; Ahoy seat pad, £22, Laura Ashley

Ibiza chair, £24, Achica

Birdhouse, £16.95, dotcomgiftshop

Four person picnic hamper, £59.50; dinner plate set, £17.50; side plate set, £15; cereal bowl set, £15, Marks & Spencer

C O N TA C T S » Achica achica.com » B&Q diy.com » Dobbies dobbies.com » Dotcomgiftshop dotcomgiftshop.com » Dunelm dunelm.com » Homebase homebase.co.uk » Lakeland lakeland.co.uk » Laura Ashley lauraashley.com » Marks and Spencer marksandspencer.com » Tiger tigerstores.co.uk 12

First Time Buyer August/September 2016

Homepage LIVING

Tropical bistro set, £29,99, Dunelm

Berkley three burner gas BBQ, £127, B&Q

Portable bucket charcoal BBQ, £9.99; portable kettle charcoal BBQ, £14.99, Homebase

Amalfi side plate, £3.49; dinner plate, £4.49; bowl, £3.99; salad bowl, £12.99; platter, £14.99; mug, £3.99; rustic tableware cutlery caddy, £12.99; party proof large wine goblet, £4.99, Lakeland

Coloured lanterns, £1 each, Tiger

First Time Buyer August/September 2016

Homepage LIVING

At home with:

Oliver Peyton

Oliver Peyton OBE, is founder and chairman of Peyton and Byrne and is a renowned restaurateur, judge on the BBC 2 series Great British Menu and author of two cookbooks. He was awarded an OBE in 2012 for his services to the hospitality industry. A true entrepreneur, Oliver talks to Lynda Clark about his inspiration, property experiences and his future plans FTB: Tell us about your first property experience OP: The first property I owned was in Willesden Green. It was a beautiful period four bedroom apartment with parquet flooring and I was very happy there. I’d lived in a small flat in Marble Arch for 10 years prior to that, so the flat in Willesden Green felt like a palace in comparison! FTB: Where do you live now? OP: I lived in and around the West End for about 30 years and then in Cleveland Square in Bayswater. After having three children we needed more space for them to run around the garden, so I now live in Acton. FTB: How did your career start? OP: My career started with running The Can nightclub in Brighton with Andrew Hale. It was a buzzing venue for hip-hop at the genre’s peak in the eighties, and Fat Boy Slim used to play there regularly. I also ran RAW in London and I had the idea of importing premium drinks and masterminded the distribution of Absolut vodka and Sapporo Japanese beer. This really spearheaded the creation of the now booming Super Premium spirit sector and a rejuvenation of British cocktail culture. FTB: Tell us about your restaurants OP: My restaurants vary from cafes where you can grab a quick cup of tea, to formal sit-down venues such as The Wallace. Most of them are set in British cultural landmarks such as museums, galleries and parks. Inn the Park for example is a central

“KNOW THE AREA YOU WANT TO BUY, SPEND TIME THERE AND REALLY EXPLORE IT, AS IT’S A BIG DECISION” 14 First Time Buyer August/September 2016

Homepage LIVING

Peyton and Byrne Grab and Go Café at the National Gallery

London oasis in St James’s Park, making the perfect destination for morning coffee, an alfresco lunch or a post-work drink on the roof terrace. I also have the Peyton and Byrne bakeries, and have just opened a new bakery on Great Portland Street with a brand new range of products. FTB: How did it feel to get an OBE? OP: It sounds cliché, but when the letter arrived in the post I couldn’t believe it was for me! Of course, it was a fantastic feeling. FTB: What inspires you? OP: I am inspired by new things and I love creating fresh concepts and ideas. London is the most competitive food destination in the world and when there is so much choice out there for consumers it is important to innovate, evolve and change. FTB: How did you get on to TV and tell us about The Great British Menu? OP: I had never done TV before so it was completely new to me when I got the call for The Great British Menu. When I first started the judges were Guardian food critic Matthew Fort and restaurateur, caterer, cookery writer and journalist Prue Leith. I couldn’t believe they chose me and

“THE FIRST PROPERTY I OWNED WAS IN WILLESDEN GREEN, WHICH WAS A BEAUTIFUL PERIOD FOUR BEDROOM APARTMENT WITH PARQUET FLOORING AND I WAS VERY HAPPY THERE” was initially a little intimidated by their expansive knowledge on food, but when I started tasting I realised I knew more than I thought! Once you’ve been doing something for a long time it all makes sense. So 10 series later and it’s still going strong! FTB: You are also an author – what books have you written? OP: I’ve written one book for The National Gallery. I also wrote a British bakery book four or five years ago which focused on traditional baking techniques, so I would like to write another one at some point focusing on how things have changed and the most recent developments in baking. FTB: What are your plans for the future? OP: To do less, I’m always busy! On a

serious note, my dream has always been to operate a bar or restaurant on top of the BT Tower. I’ve been inspired by the building ever since I went up there as a child. We also have some exciting new plans at Kew Gardens and have just opened The Botanical Café! I’m really looking forward to developing this project and of course I am always looking for new bakery sites. FTB: What advice do you have for first time buyers? OP: Know the area you want to buy, spend time there and really explore it, as it’s a big decision. There is no better feeling than turning your key in the door of your first flat and knowing you have chosen the right one. peytonandbyrne.co.uk

First Time Buyer August/September 2016

Homepage FIRST RUNG

The

HOUSE HUNTER

What we found… THE WILDCARD Aberfeldy Village Poplar, E14

THE COMMUTER’S FRIEND FROM £304,995

Beechwood Basildon

FROM £169,995

This month FTB goes on the hunt with Liam Jennings and Nick Badu who are after a one or two bedroom home in east London

PROFILE

Name Liam Jennings, 37 and Nick Badu, 35 Occupation Computer programmer, Software engineer Maximum budget £290,00 Requirements A one or two bedroom home close to local amenities and parks, a balcony or garden would be ideal, as would private parking.

What they wanted… Nick and I have been renting in east London for several years and would really love to settle down and buy our first home. We’re both from rural Essex and we’ve really enjoyed the hustle and bustle of city life, but we’re quite open to where we live, so long as its east and we have easy access to Essex. We both work in the City, and our ideal scenario would be to have an apartment with a garden or balcony within a 30ish minute commute to work. It’s really important that we’re close to a green or park, as we have a little Jack Russell that needs to get out a lot. He comes to work with Nick or me during the day, but we’re always out for walks in the evenings. We both have savings as well as some money from when I was made redundant a few years ago, which I wanted to save and do something good with. Our budget is £290,000.”

First Time Buyer August/September 2016

This grand new development of 1000 new homes forms part of the wider regeneration of the area, which will see the creation of green spaces, shops, cafes and a health centre in this up-andcoming part of town. The homes have been designed for modern London life, and include integrated appliances, sleek, fitted kitchens and a private balcony or terrace. East India, as well as several other DLR stations, are close by, while the Thames is just a few minutes’ walk for easy access to Greenwich, via the footbridge.

This thriving Essex town has been named ‘best for commuters’ with travel times into Liverpool Street of just 38 minutes. The apartments and houses range from one to four bedrooms, close to the town centre with its many bars, cafes and amenities – as well as parks and green spaces. Inside, the homes are thoughtfully designed – the two bedroom homes feature a well-sized open-plan living/dining area, a master bedroom with en suite and a tiled family bathroom. Each home also comes with at least one private parking space.

av-e14.co.uk

beechwood-nuliving.co.uk

What they thought… There really is a lot going on here – it’s almost like an entire new village is being created, and we think it would be quite exciting to be part of something so new. We really like the location and can imagine walking the dog down along the Thames – living like true Londoners. The apartments are really plush, which is such a difference to the old place that we live in now – we just love the style of the brand-new kitchens and bathrooms.”

Basildon looks like a really nice area – and is a little more like what we’re used to, having grown up outside of London. There are some lovely parks in the area, which would be perfect for walking the dog. There are also some cool things going on in the local area, while central London is under 40 minutes away. We do also really like the idea of being close to both London and also a little closer to our families – it’ll be a lot easier to drive from here than from London.”

Homepage FIRST RUNG

THE ON-SITE FACILITIES Marconi Evolution Chelmsford, Essex

FROM £234,995

What we found…

THE ICON Stadium Place Walthamstow

FROM £78,750*

IN G TH E W OO DL AN D SE TT Kings Park Harold Wood

This development, near Chelmsford, has great onsite facilities, including a gym and concierge service as well as landscaped gardens and cycle ways. The homes feature open-plan living/dining areas, with doors opening to a private balcony, fitted kitchens and integrated appliances. There are parks and countryside in abundance in the local area, while commuting times into London Liverpool Street take just 40 minutes from nearby Chelmsford rail station.

Created on the site of the iconic former East End racing track, these new one to three bedroom homes offer the chance to get on the ladder in an increasingly popular part of the capital. Walthamstow is a vibrant town with lots going on, including lively markets and pop-up restaurants, and has a good community feel. Painstaking work has seen the Art Deco façade of the original building restored, creating a beautiful entrance, while inside, the homes are bright and contemporary and include private balcony or terrace.

bellway.co.uk

lqpricedin.co.uk *Based on a 25% share of the full market value of £315,000

We’ve visited Chelmsford a few times and have always had a soft spot for it – it’s a really pretty city. The commuting times into London are a lot quicker than we’d thought, and what we really love about the area is that it’s not really that far from the coast. We really would get to enjoy the outdoors if we lived here. We like the style of the apartments – and what’s really great is that there’s a central garden, where we could take the dog out when he just needs a little run.”

What an entrance! I think it’s brilliant that the developers retained the original entrance to the stadium and it would certainly be a talking point when friends come over. We love the look of the homes – they are designed beautifully and it looks like it would be a nice, quiet place to live. We know Walthamstow well and really love it. We’ve a few friends living in the area, so it would be really nice to be close to them. And there is a huge park just over the road, which would be paradise for the dog!”

FROM £TBC

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THE NEXT STEP

“We think that this looks like a really good option for us. The first thing we want to do is take a bit of time getting to know the local area and exploring the town to make sure it’s the right fit. We know we have to move quickly so we’ll get our skates on and maybe take our parents too, so we can get their input before we get the ball rolling.”

What we really like about this option is that it’s surrounded by parkland. We both love getting out, walking the dog and just enjoying some fresh air, and to have it right on our doorstep would be a dream come true. Trains into Liverpool Street only take about half an hour, so it’s a nice mix between city and country. There are absolutely loads of parks around as well as lots of local shops and a few nice looking pubs and restaurants. We really like that it’s essentially on the edge of the city and that we can dip in and out as we wish. The homes are really lovely and we can really see ourselves in a lovely new home with such a great kitchen and bathroom.”

First Time Buyer August/September 2016

ADVICE

Developer’s Doctor Tim Seward has spent the past 12 years heading up all sales activity for the Circle Housing group, including private sales, shared ownership and asset sales. Before that, Tim worked in the sector for the National Housing Federation, as well as a government agency called H.O.M.E.S. Here, Tim gives invaluable advice on how you can get on the property ladder

Question… I’m looking to buy a new home in London, but with all the mixed messages I read in the press about the housing market at the moment I’m worried if it’s the right time to buy?

Answer … I always take the view that you need to be clear on why you’re buying? If you’re buying to turn around and sell for a quick return then you need to think about the immediate market conditions. If you’re looking for a home and buying for the longer term, market fluctuations can even out over time and your objective is different. We’ve had a period of sustained value growth, which leads to speculation about when the bubble will burst. Personally I don’t believe there is a bubble as such as the housing market is backed up by a critical shortage of housing and high demand. It’s been driven at the top end by a lot of foreign investment and we’ll have to see how that changes over the coming months and what effect that has trickling down to the wider market. You’re looking for a home so you need a roof over your head that meets your needs in terms of location and space. Hopefully over time you’ll see value growth, but nothing is guaranteed – it’s an investment and no investment is certain. The important thing is to find a property that you want to live in – as it will be your home. One thing you can do to limit your exposure is to just buy a share in a property through shared ownership or using an equity loan through the Help to Buy scheme. That means if you buy 60% for example, if the market dips you’ll only take the hit on your share, not the full value. Help to Buy in London has recently

First Time Buyer August/September 2016

had a boost with the increase in equity loans to 40%. You potentially only need a mortgage for 55% and deposit of just 5% the remainder is paid by the Government through an equity loan of up to 40%. There’s no interest to pay on the loan for the first five years after which a low interest charge of 1.75% kicks in. It’s a great opportunity for first time buyers and the scheme is available on many new build developments on homes valued up to £600,000. Banbury Park in Walthamstow is an excellent example – a brand new development offering a range of stylish

Tim Seward, Head of Property Sales at Circle Housing

one and two bed apartments for sale with Help to Buy available. At the time of writing, one beds are available at a starting price of £350,000. With Help to Buy using a 40% government equity loan you would only need to pay £210,000. Your 5% deposit would be just £17,500. For more details visit banburypark.co.uk or call 0845 223 0000. For extra comfort if you’re worried about the market, Savills – a leading agent, have recently identified the London Borough of Waltham Forest as being one of the top two locations for the highest potential price growth over the next five years. So it could be an excellent time to buy in the borough.

BANBURY PARK Banbury Park is Centra Living’s latest flagship development in Walthamstow. Homes are selling fast with the first release already sold out. The development boasts a stunning selection of one, two and three bedroom apartments and four bedroom family houses available. All homes are built to a high quality specification and kitchens come with an electric cooker and hob, dishwasher, washer/ dryer in the apartments and fridge/freezer. One bedroom apartments start at just £350,000. With Help to Buy you could purchase a new home from just £210,000 and just a 5% deposit based on a 40% equity loan (correct at time of going to press). Over 2,400 square feet of retail and commercial space will also be created to house a major new retail unit, as well as smaller shops and business premises. It will also have landscaped community spaces and direct access to open park at the rear of the site that will help to continue the regeneration of the area. Banbury Park also boasts excellent transport links into central London - there are numerous bus connections from Billet Road to Walthamstow Central and Blackhorse Road tube stations. The development is also situated beside the North Circular and a short drive from the M11. Located on Billet Road, Banbury Park has 174 homes for private sale. The new £70m development completely transforms the site with this stunning landmark development. Prospective buyers can call Centra Living, part of Circle Housing on 0845 223 0000 or visit banburypark.co.uk

THE VIEW

20 First Time Buyer August/September 2016

THE VIEW

A country girl at heart Sara Damergi is of both Lebanese and English decent and is a TV presenter, internet entrepreneur, has worked with her father in his property business and renovated her own properties. She has been a presenter for the Channel 4 series A Place in the Sun, and is currently one half of the presenting team on a brand new Channel 4 show, Coast V Country. She talks to Lynda Clark about her home, her new series and fascinating career Sara appears to have no boundaries when it comes to taking risks. She has led a very exciting and remarkable life and is both passionate about property and travelling. She was born in Paddington and lived with her Lebanese father and English mother in Knightsbridge. Her father has a bespoke business dealing with Arabic VIP clients relocating, investing or holidaying in London and when she was just three years old the family moved to Beirut. Sara has very fond memories of her time there and at the time could speak fluent Arabic. Unfortunately when the war broke out in Lebanon the family had to move back to England and her parents divorced. “I then divided my time between London and Kent and as my dad is a workaholic, it was given that I would be part of the business deals, property viewings and general day-to-day duties when I was staying with him. I was answering the phone in his office from probably the age of nine! It may seem odd that I was part of the business as a child, but no one ever questioned it and I think it was partly cultural too. Family is everything in the Middle East. I got to meet Sheiks and diplomats and see their homes and go on property viewings as well. It was a whirlwind really but a great learning experience in the property business.”

Sara went to a very quaint school in Kent, which had originally been the home of Charles Dickens. She said, “It was like something out of a Harry Potter film. There were only five pupils so it was very unusual and I ended up being head girl, but with so few pupils to choose from it wasn’t really that special. I then moved on to do my A’ levels at a grammar school, which had more pupils and I loved it. In fact, I am still friends with some of the girls now.” Before she went to university she lived in Ibiza and Cyprus for a while where she started up a club night. “My television career started by chance when I was at my mum’s house and we were watching a local channel and my mum said that she thought I could be a presenter. So, I called them up and said I would like to give it a go and believe it or not they offered me a job and I got £50 a day! She continued working with her father on-and-off up until he moved back to Beirut when she was in her early twenties. I started up my internet business, which is still going strong. That allowed me to become a digital nomad and travel the world with no fixed address, which was amazing. I stayed with tribes in rural Vietnam, an aristocratic artist in Sri Lanka, went snowboarding in Japan and cruising in Kerala to name a few! I was also the lead presenter on the

“THERE IS SO MUCH REGENERATION GOING ON THAT AREAS WHICH MIGHT SEEM RUN DOWN NOW SUDDENLY ARE ON THE UP. WHEN I BOUGHT IN CATFORD IT WASN’T VERY TRENDY BUT NOW IT IS REALLY ON THE RISE” First Time Buyer August/September 2016

THE VIEW

international extreme sports show, The Crunch, which was filmed across remote China and broadcast on primetime TV on Granada, Astra and TV NZ across various territories. Always dipping in and out of working with her father in his property business Sara said, “Some of the people my father has worked with are extremely wealthy and it is totally another world. He finds property for people and short-term holiday lets. Sometimes they would stay in a place for a very short period of time but would want it completely refurbished. I can remember having to go to Harrods and buy pairs of pyjames, which cost thousands of pounds – it’s incredible. But I recently visited Beirut, which has some serious problems at the moment and I collected clothes from some of the very wealthy people I know there and took them to a refugee camp. It was very odd to hand over a jacket worth £6000 and a Dior hat to an illegal refugee who has 14 children, but these are desperate times.” Sara presented A Place in Sun, A Place in the Sun – Winter Sun and A Place in the Sun – Home or Away for three years, which she thoroughly enjoyed. “I had a wonderful time and travelled to some great places and it fitted perfectly with my love for presenting and my bug for travel!” As she had been ‘on the road’ for such a long time, Sara decided to take some time off. “I needed a breather and enjoyed having some time to myself. I bought an apartment in Catford, south east London, which I renovated and now rent out. I studied yoga nidra and iRest which is a form of meditation and can help with post traumatic stress disorder, so it was a very interesting and fulfilling time.” Now Sara will be on our television screens with a brand new series, Coast v Country on Channel 4, which will start in August, which she is co-presenting with interior designer, Kerr Drummond. “It is a very different show and Kerr and I have a lot of fun and banter! It is basically for couples who have very different ideas of where they want to live and are facing a real dilemma – one of them wants to live in the countryside, and I find homes for them to consider and the other wants to live near the sea, and Kerr, who is a coastal aficionado helps them. We battle it out and try to convince the person who isn’t keen to live by the coast or in a rural location that actually it is a good idea. I tell the house-hunters that living by the coast can be cold and dreary in the winter and full of tourists in the summer and you certainly get more for your money if you live in the country. I am really enjoying filming and it’s made me think about buying a home of my own in the country.

First Time Buyer August/September 2016

Sara with co-presenter, Kerr Drummond

“MOVING HOME IS COSTLY SO YOU SHOULD CONSIDER IF THE PROPERTY WOULD BE BIG ENOUGH IN THE FUTURE FOR SAY, A GROWING FAMILY?” I own two properties at the moment – the one I live in and one in Catford, which I rent out but I am looking for another place either in London or maybe Kent. “I share my apartment with my dog Thor, who is a cockapoo and is very special. He has even made a special appearance in the new series and has his own contract and even gets paid! I bought the one bedroom apartment about four years ago and it has a lovely big garden, which is great for Thor. Although it is fairly close to central London it is near to commons, the river and some great woods. I have renovated it as when I first moved in it had a typical 90s green bathroom with bubbly tiles which was pretty hideous. I am looking to either move closer into central London or back to Kent. But I need a garden and my place is very peaceful and I don’t want to live anywhere very noisy. I’m not at home five days a week as I am often away filming or travelling so I just need a pied-a-terre really. It would make sense though to invest in another property so I am always looking.” Sara has some excellent advice for first time buyers and said, “Buy as soon as you can because if you pay £200,000 now then the way prices are going up it will soon be worth £375,000. However, you should buy a property that you feel

you will be happy with in five or eight year’s time! Moving home is costly so you should consider if the property would be big enough in the future for say, a growing family? Work out your finances before you take the plunge to ensure you can afford everything from the mortgage to the bills and running costs. It is also sometimes a good idea to look at areas you don’t particularly like. There is so much regeneration going on that areas which might seem run down now suddenly are on the up. When I bought in Catford it wasn’t very trendy but now it is really on the rise. Places like Ladywell, Lewisham, Tooting and Balham are now extremely sought-after. Transport links are also very important especially if you are commuting.” There certainly never seems a dull moment in Sara’s very exciting life, as she is full of enthusiasm and ideas. As we finish our chat I ask her what her plans for the future are? She said, “I am just going to go with the flow and see what turn’s up” I have a feeling that a lot will turn up and we will be seeing quite a lot more of Sara in the future. Coast v Country will be on Channel 4 starting in August

THE VIEW

“I AM REALLY ENJOYING FILMING AND IT’S MADE ME THINK ABOUT BUYING A HOME OF MY OWN IN THE COUNTRY. I OWN TWO PROPERTIES AT THE MOMENT – THE ONE I LIVE IN AND ONE IN CATFORD, WHICH I RENT OUT BUT I AM LOOKING FOR ANOTHER PLACE EITHER IN LONDON OR MAYBE KENT”

First Time Buyer August/September 2016

HELP TO BUY

HELP TO BUY – A REAL SUCCESS STORY More people are getting a foot on the housing ladder thanks to the success of the Government’s Help to Buy initiatives, reports Kay Hill The Help to Buy Equity Loan, one of the raft of measures introduced by the Government to help would-be home owners (see column for full details), has started to improve the prospects of first time buyers in London, who have long been shut out of the housing market because of rising prices. At the beginning of the year, the amount of equity that the Government would put into a property through the Help to Buy scheme increased from the 20% that is available throughout England and Wales, up to 40% for those buying homes in any London Borough and the City of London. The decision, taken by the Chancellor in the Autumn Statement, followed statistics that showed that while more than 3,000 equity loans had been granted in London since the

First Time Buyer August/September 2016

beginning of the scheme in 2013, these were concentrated in a few boroughs with more affordable housing, such as Havering. Five areas – Haringey, Westminster, Camden, Kensington and Chelsea and the City of London - didn’t have a single application during that time. Even at this early stage, results are visible. Laura Ellis, equity loan manager for Help to Buy London, confirmed that there has been a notable increase in sales using the scheme since the loan amount was doubled. It has been good news for house builders and workers in the construction industry too – David Thomas, Chief Executive of Barratt Developments, recently issued a buoyant trading update and noted, “The Government continues to focus on

increasing housebuilding by improving land availability, streamlining planning and supporting consumer demand. We anticipate a continuation of this supportive environment for housebuilding, as evidenced by the increase in the Help to Buy government equity loan proportion to 40% in London this year.” Nationally, a third of Barratt sales now use equity loan, and since the introduction of the larger loan in the capital, Thomas has seen the percentage of customers using the scheme in London going up from a quarter to 38%. Other housebuilders have noticed similar improvements; at Bellway, Chief Executive Ted Ayres announced, “Another record performance this year. Market conditions are robust and customer demand

HELP TO BUY HELP TO BUY IN BRIEF

Help to Buy Mortgage Guarantee: 9 The Government offers lenders a guarantee to help them to grant mortgages of 95%-80% of the home purchase price at a reasonable cost, helping buyers with a small deposit 9 Available to first time buyers, home movers and for re-mortgages in England, Scotland, Wales and Northern Ireland 9 The buyer borrows the full amount of the mortgage so must have sufficient earnings (the mortgage must be less than 4.5 times income) 9 Valid on new or pre-owned homes worth up to £600,000 9 Available from approved mortgage lenders 9 Ends in December 2016 Help to Buy Equity Loan: 9 You raise at least a 5% deposit and the Government loans you up to 20% interest-free for five years (up to 40% under Help to Buy London and up to 15% in Scotland), meaning you only need a 75% mortgage 9 Available to first time buyers and house movers 9 Can be used only on brand new homes from approved builders 9 It can be used to buy a home up to £600,000 in England, up to £300,000 in Wales and up to £230,000 in Scotland this year, although the maximum amount in the Scottish scheme will reduce annually until it reaches £175,000 in March 2019 9 There is no interest charged on the Government loan for the first five years, but after that there is a fee of 1.75% per annum on the outstanding amount. This fee will increase each year by Retail Price Index (RPI) plus 1% of the fee 9 The fee does not repay the capital – you must repay the loan when you sell, redeem your mortgage or after 25 years, whichever comes soonest. You can also pay it off at any time but at a minimum of 10% at a time 9 You must repay the same percentage of the property value that you borrowed – so if you borrowed 20% of the value you must repay

for new homes remains positive, assisted by good accessibility to affordable mortgage finance.” Since the introduction of Help to Buy London, 14% of Bellway’s London buyers were using the scheme, up from 4% a year earlier. But while Help to Buy London makes life easier for buyers in the capital, there are still challenges in other parts of the country. An investigation by the BBC found that the £250,000 cap on the property that can be bought using a Help to Buy ISA (£450,000 in London), means that many people will have to settle for a smaller property than they would ideally like. The BBC discovered that in 67% of areas in the South East, 65% of areas in London, 61% in the South and 53% in the East, the average two bedroom starter home exceeded the cap. For unlucky wouldbe buyers in parts of Buckinghamshire and Hertfordshire even one bedroom flats routinely exceed the limit. However, there’s no doubt that Help to Buy has become a vital source of help for first time buyers and others who are struggling with rising prices. A recent external evaluation of the equity loan scheme for the Government revealed that 82% of buyers using Help to Buy would not

20% of the current value at the time you repay. If your house has gone down in value this will mean you repay less, but if it goes up you will have to repay considerably more. A valuation charge will apply 9 You cannot extend the property or make any substantial improvements to it Help to Buy ISA: 9 A tax free scheme designed to help people save for their first home 9 Available to any first time buyer aged 16 or over 9 You can put down an initial deposit of up to £1,000 then up to £200 each month. The Government tops your savings up by 25% up to a £3,000 bonus. You must save at least £1,600 to qualify 9 The funds and bonus can be put towards the purchase of any home costing up to £250,000 (or £450,000 in London) Help to Buy Shared Ownership: 9 You buy a share in a new home, ranging from 25% to 75%. A housing association owns the remaining share, on which you pay a reduced rent 9 Available to English households earning £80,000 a year or less (£90,000 in London) and who cannot afford to buy a property outright without government assistance 9 Available to first time buyers, non-property owners and existing shared owners only 9 Schemes are also available in Scotland, Wales and Northern Ireland, but eligibility is more complex 9 As you are only buying part of a house you need a smaller mortgage and a smaller deposit 9 You can buy more shares when you can afford them (staircasing) and as you buy more shares, you will pay less rent. In some cases you can eventually own the whole property

have been able to buy without the scheme, 43% of new homes have been built as a direct result of Help to Buy and, best news of all for first time buyers, is that there is no solid evidence that the scheme drives up house prices. One factor that is now helping buyers in pricier areas is the increase in the income that borrowers can have and still be eligible for Help to Buy Shared Ownership. Last year it was capped at a £60,000 household income and often only available to specific groups of workers, but the widening of the eligibility in April this year to any English household earning less than £80,000 (£90,000 in London) is expected to give a big boost to numbers. Announcing the change, Communities Secretary Greg Clark said, “We’re determined to ensure that hardworking people right across the country once again see home ownership as an achievable ambition. Shared ownership schemes have proved a real help to first time buyers, but punitive restrictions have locked too many out of this opportunity to buy. These changes will open the door for thousands of people across the country to help them buy their own home.”

L AT E S T F I G U R E S

From the Department for Communities and Local Government 9 In the first 3 years (to 31 March 2016), 81,014 properties were bought (legal completions) with the support of the Help to Buy: equity loan scheme 9 The majority of sales were to first time buyers (65,474 representing 81% of total sales 9 The average (mean) purchase price was £222,830 9 The top 6 local authorities in terms of completed sales are Wiltshire (1,355), Leeds (1,235), Central Bedfordshire (1,177), County Durham (1,081), Wakefield (1,000) and Bedford (995)

First Time Buyer August/September 2016

HELP TO BUY CA S E S T U DY

Christopher Williams, 27, and fiancée Sophie Da Costa, 25, never imagined that they would be able to move out of their rented two bedroom flat in south London and not only buy their own home, but upsize into a three bedroom house. Thanks to the Government’s Help to Buy London scheme, however, that is exactly what they have done, and as well as relishing the extra space, they are £250 a month better off. When the couple started looking, they assumed they would struggle to buy a similarly sized flat to the one they were renting in Putney – especially as recent research by Zoopla had suggested that owning a home in London costs around £15,216 more per year than renting. However, that doesn’t take into account the fact that with Help to Buy London the buyer only needs to put down a 5% deposit and take out a 55% mortgage – the remaining 40% is a loan from the Government that is interest-free for five years. The couple chose to move to a brand new three bedroom house by Barratt Homes, at Cane Hill Park in Coulsdon, where similar properties cost around £522,995. Sophie, a financial administrator, explains, “The London extension of Help to Buy has not only made our move possible but it has meant that we can buy a home that we can see ourselves living in for the foreseeable future. Without it, making a move like this just wouldn’t have happened any time soon. The scheme also gives us plenty of time to repay the equity loan.” Christopher, a structural engineer, said, “It’s amazing really to think that we will be saving at least £250 a month on our mortgage to buy a three bedroom house compared to what we have been paying for our rent in a moderately sized flat. Help to Buy London has meant that we have been able to buy our first real home and somewhere that we can stay for more than just a couple of years. We loved the houses and hill top setting at Cane Hill Park and after doing all the sums it didn’t take us long to know it was the right move for us.” barratthomes.co.uk

HOMES FOR SALE WITH HELP TO BUY WATFORD Leggatts Green Taylor Wimpey’s development Leggatts Green in Watford offers a collection of 29 one and two bedroom apartments plus 15 affordable FROM apartments. The town £267,500 offers a wealth of shopping, entertainment and leisure opportunities, including a weekly market and a great selection of bars, restaurants and clubs. Woodside Leisure Park is close by and is great for families with its bowling alley and multi-screen cinema. There are excellent transport links into central London as Watford is at the end of the Metropolitan line, which takes you to London Euston or Kings Cross. There is also the Overground line from either Watford Junction or Watford High Street stations, which takes from around 15 to 40 minutes depending on which service you get to London Euston. The apartments feature an integrated fitted kitchen with an open plan living/kitchen area and all apartments have a Juliet balcony. The apartments also come with a parking space. Help to Buy is available on selected one bedroom apartments in Beall Court, the price is £267,500 with a 5% deposit of £13,375 and a 20% equity loan of £53,500. taylorwimpey.co.uk 020 8236 3800

26 First Time Buyer August/September 2016

FRIMLEY, SURREY

FROM £495,000

Woodbridge Woodbridge from Thames Valley Housing offers a collection of four bedroom houses set in lovley mature landscaped grounds and close to the local shops and station. They feature designer kitchens equipped with the latest appliances and the master bedroom comes with an en suite shower room. Bi-fold doors open out from the living area on to a patio and rear garden and each home has two private parking spaces. Ideal for commuters, Frimley station is less than a quarter of a mile away with trains taking a little over an hour to London Waterloo. Prices start from £495,000 for a four bedroom house and with Help to Buy it means that a deposit of only £24,750 is required. woodbridgehomes.co.uk 01276 538 991

SHARED OWNERSHIP

GET ON THE LADDER WITH SHARED OWNERSHIP Confused by shared ownership? Think it’s just for key workers? Or just for ﬁrst time buyers? Then think again! A week long national campaign is returning for its fourth year, to raise awareness of the affordable alternative to homeownership. It starts on Thursday 15th September, to help homebuyers understand how they could be eligible to secure a property with this pioneering scheme Shared Ownership Week which runs from 15th to 21st September and is backed by many of the major housing associations including Guinness, L&Q, Notting Hill Sales, East Thames, Newlon, Southern, Hyde, Circle, Moat, Metropolitan and Network Homes. Each will be showcasing their new build shared ownership developments throughout the week, sharing their expertise with potential buyers, and

First Time Buyer August/September 2016

providing information on how the scheme works and where it is available. The dedicated website sharedownershipweek. co.uk contains a wealth of information for prospective buyers too, including real life first time buyer case studies, videos and links to shared ownership homes that are currently available. Shared ownership has been available since the 1980s, governed by local councils with their own eligibility criteria. This

year, the Government relaxed eligibility criteria and now the scheme is open to people of any occupation, while income caps have been be raised, meaning families earning up to £90,000 in London and £80,000 outside the capital could be eligible. Second steppers can also now benefit from shared ownership when trying to climb the property ladder, with equal priority as first time buyers, and the cap on the number of bedrooms has also been lifted.

SHARED OWNERSHIP CA S E S T U DY

Keen to stop renting and get on the property ladder Sasha Tandon, a brand ambassador for LG and her partner, Kwadwo Korang, a personal trainer, have just bought an apartment through shared ownership at East Thames’ East Plaza development in Stratford, E15. Sasha said, “Previously we were renting privately but decided we wanted to progress and buy our own place. We looked at buying outright but realised that if we did this, the only way we could afford something was if we moved further out of London, which we didn’t want to do. It is really difficult to get on the property market in London so we decided to explore the option of shared ownership and looked into the homes available through East Thames. They were incredibly helpful and talked us through the whole process, explaining what shared ownership involved and the future options available to us including staircasing as well as what our monthly outgoings would be. It seemed the best option for us to get on the property ladder.” Kwadwo continues, “We looked at other areas in east London including Tower Hamlets but when we came to Stratford and discovered how well connected it was, we decided straight away it was the better option for us. The leisure and shopping options are so good in the area and it means that we didn’t have to travel into central London to go out in the evening or to go shopping, making our lives much easier. Shared ownership gives you the opportunity to buy a property in a sought after location.” Sasha and Kwadwo purchased a 30% share of their apartment for £136,500 with rent payable on the remaining equity. The full market value of the property is £455,000. Sasha said, “We would absolutely recommend East Thames. They answered all our questions and were always in touch with updates. They made it really simple and such a smooth process.” All the homes at East Plaza are now reserved but go to east-thames.co.uk to find out more about their other shared ownership properties.

EXPERT COMMENT

HOW IT WORKS Shared ownership or part buy/part rent is where you buy a share of your home – usually between 25% - 75% - and then pay a subsidised rent on the part that you don’t own. Over time and when you can afford it, you can buy more shares, until you own your property outright. This is called staircasing and the more shares you buy, the less subsidised rent you pay.

ELIGIBILITY You can buy a home through shared ownership if: 9 You are a first time buyer (or you used to own a home, but can’t afford to buy now) 9 Your household earns £80,000 a year or less with the exception of London where the threshold is £90,000 a year

KEY FACTS 9 You will need a smaller deposit, as you only need to find the deposit for the share you buy 9 You will need a smaller mortgage, as you are only buying the percentage you can afford 9 There will also be a service charge on the property, so it is important to check what this is likely to be 9 You will need to take out a mortgage

to pay for your share of the home’s purchase price 9 Shared ownership homes are always leasehold 9 You can sell your home at any time. The housing provider will have eight weeks to find you a buyer and during this time you cannot sell your home privately or through an estate agent. If they find a buyer, they will usually charge you an administrative fee, so you should ask them whether this is a fixed price. If they cannot find a buyer after eight weeks, you will be able to sell your home privately or though an estate agent 9 Housing associations offer resale properties, which have already been bought through, shared ownership in the past, and the owner is looking to sell their share and move on. You buy the share they are selling and pay a subsidised rent on the remainer. It is unlikely that you can buy fewer shares than the current owner has, but it may be possible to buy more. Remember that these homes will obviously be older and in more established communities

Shared ownership is a great affordable option for first time buyers who may not have a large enough deposit to buy a new home or for those on lower incomes where home ownership is unaffordable. The costs of this part buy/part rent scheme can be less than renting on the open market and in the future when you can afford it, you can buy more shares in your home until you own it 100%. Buying a new home through shared ownership is now more popular than ever. This year the household income levels were increased to £90,000 in London, and the restrictions were lifted to allow you a choice of property size and where you can buy. Buying your first home can be a stressful experience. Buying with Guinness Homes means you have support and advice of our team throughout the process.

APPLYING FOR SHARED OWNERSHIP

Julie Stafford

To buy a home through shared ownership you should contact the Help to Buy agent in the area where you want to live. See page 90 for details.

Guinness Homes

Head of Sales & Marketing,

First Time Buyer August/September 2016

SHARED OWNERSHIP CA S E S T U DY

Tomomi and Joao had lived in Bermondsey for 10 years and started their family there, but as the area became increasingly fashionable rents went up and the couple assumed they would be forced out. Now they are settled into a brand new four bedroom apartment by L&Q close to Elephant and Castle and London Bridge stations. Their shared ownership home is costing them less per month than they were paying when they were renting. Joao, who is 35 and works as an architect, said, “It’s still hard to believe today as we never thought we would be able to afford to live in a place like this in London. We have two children, we were renting and it was expensive. The situation in London is quite precarious in terms of renting - rent can be upped at any time.” Rio, who is five, and Maira, one, are enjoying everything that their new home has to offer. “For the children there are many small parks nearby as well as Burgess Park. There are also lots of playgroups for toddlers. There is even a mini nature reserve where they involve children in gardening and planting bulbs.” Tomomi said, “The travel connections are absolutely amazing. Zone One has 26 bus routes and you are right next door to the Bakerloo Line and the Northern Line. We are a 10-minute cycle from the Southbank Centre or the river. We very much feel like we are living in London. And we are right next door to East Street market where I can actually do all the grocery shopping every day. Because we are here to stay, we are all really friendly with the neighbours. We want to develop good relationships with each other because we all bought here, and that’s really nice.” For more information on L&Q’s shared ownership properties go to lqpricedin.co.uk

EXPERT COMMENT As one of the UK’s largest housing associations, we are very proud to be supporting Shared Ownership Week, which this year will run between the 15th and 21st September. Shared Ownership Week was set up to help raise awareness of the scheme, which is becoming an increasingly popular route on to the housing ladder

EXPERT COMMENT

for first time buyers. The scheme moved even further into the spotlight

Shared ownership is becoming

earlier this year, when eligibility

an increasingly popular route to

criteria changed – with maximum

homeownership, providing people

income levels increased and some

with an alternative to renting which

restrictions on living or working in a

allows them to buy their home

particular borough relaxed. Now,

in stages as they can afford to.

more people than ever can benefit

East Thames are very proud to

from the scheme. Here at L&Q, we

be an award winning Housing

have one of the largest programmes

Association, with a growing build

of shared ownership homes in

programme covering affordable

London, with several schemes

rent, shared ownership and private

due to launch later in the year –

sales – visit our website at east-

visit lqpricedin.co.uk for further

thames.co.uk to find out more.

information.

Olivia Moss

Tony Harker

Marketing Director,

Director of Sales

L&Q

and Marketing, East Thames

CA S E S T U DY

Senior reporting manager Scott, 31, chose to buy through shared ownership at Rathbone Market to solve his property nightmare. Keen to move out of rented accommodation and into a property of his own, Scott was disconcerted by his initial property search. Scott said, “I had a look into house prices and areas in London where I might be able to afford on the open market; I even looked outside of London and outside of the neighbourhoods where I wished to live but there wasn’t really anywhere suitable. I’d been renting for the best part of 10 years and I got to the point where I really didn’t want to keep putting my money into someone else’s pocket each month. I feel I’m too old for house shares now, I wanted my own place and, for me, the only way I could do that was by going down the shared ownership route.” Like many first time buyers Scott’s main issue with buying on the open market was his inability to raise the funds for a deposit on a full market value property. “It wasn’t about affording the monthly mortgage payments, it was the deposit. Owning 40% is better than owning nothing at all and wasting money on rent. At least this way I am building up some equity and have more of a chance of moving on to the open market in the future,” he added. Scott bought a 40% share of a one bedroom apartment valued at £272,500 in 2015. He paid an £18,000 deposit on his share of £109,000. Scott’s monthly mortgage and rent payments come to £800 excluding service charge and bills. Rathbone Market is a new, architecturally striking development at the heart of the Canning Town and Custom House regeneration programme. Located on Barking Road, the development will deliver 650 new homes, as well as extensive new commercial and retail facilities, including a new market square, offices and an attractive courtyard garden and ample cycle storage. The homes are all designed with urban living in mind, with modern kitchens and bathrooms, and outdoor spaces in the form of balconies or terraces to many. Ideally located for easy access into the City, Rathbone Market is a five minute walk to nearby Canning Town station, in Zone 2/3, offering both the DLR and Jubilee lines. The area is also well-served by local bus routes and nearby Custom House will soon be home to Crossrail. The third and final phase at Rathbone Market comprises 45 one, two and three bedroom shared ownership apartments, due to launch later this year. Discover more shared ownership homes with Notting Hill Sales including Rathbone Market, please visit nottinghillhousing.org.uk/shared-ownership

First Time Buyer August/September 2016

SHARED OWNERSHIP

HOMES YOU CAN BUY THROUGH SHARED OWNERSHIP FROM £86,250*

WOOLWICH Drummond House, Royal Arsenal Riverside

The latest addition to the £1.5billion regeneration of Royal Arsenal Riverside in Woolwich, Drummond House is Notting Hill Sales’ brand new scheme of one and two bedroom apartments, available through shared ownership. Apartments are modern in design, with a quality specification and spacious, open plan living areas. Nearby Woolwich Arsenal Pier offers quick and easy riverboat services into central London, including stops at London Bridge, the Southbank (London Eye) and Blackfriars, which is ideal for commuters opting against trains and buses as a method of commuting. The development will offer additional onsite facilities including shops, a museum, gym, cafes, restaurants, all within easy reach from the development. One bedroom apartments available, ready to move into now. nottinghillhousing.org.uk/drummondhouse 020 3815 1111 *Based on a 25% share with a full market value of £345,000

EXPERT COMMENT Hyde New Homes provides London, Kent and South East

LONDON ROYAL DOCKS, E16

England. A home is one of the most

Royal Albert Wharf

affordable properties across

FROM £172,000*

expensive purchases many will ever make and the last thing buyers want is to compromise on their priorities. Our homes are within easy reach of schools, amenities and within commuting distance to London and other major cities. Purchasing through shared ownership has brought a new level of affordability to the housing market that helps buyers meet their aspirations. Shared ownership allows house hunters the opportunity to

Boasting a superbly connected location on the water just a short walk from Gallions Reach DLR station in the heart of London’s historic Docklands, Royal Albert Wharf from Notting Hill Sales offers two and three bedroom apartments, which are ideal for those looking to get on the ladder in an exciting new neighbourhood a wellconnected location in East London. The contemporary new homes enjoy spacious, open plan living areas filled with light from full height windows and modern kitchens fully fitted with a range ofappliances. All apartments benefit from outdoor space with either a terrace or patio, or access to the winter garden.

purchase the type of home they want and need with a series of

royalalbertwharf.com 020 8357 4579

small affordable stepping-stones. It also gives people the opportunity

*Based on a 40% share with a full market value of £430,000

to staircase and resell to progress to a larger, more comfortable home at a time when many are thinking about starting a family. This is particularly true of house

FROM £84,000*

SITTINGBOURNE Heron Fields

hunters who need a first foot on the property ladder, or have young families and burgeoning financial responsibilities, who may use shared ownership to buy a new build property in a fantastic, convenient family-friendly area.

Hyde New Homes have just launched Heron Fields, which offers a selection of two, three and four bedroom terraced, semi-detached and detached homes, set within attractive landscape gardens. Close to the market town of Sittingbourne with its wide range of shops, pubs and restaurants the homes are designed with family living in mind with spacious interiors, fully fitted kitchens with integrated appliances and an allocated parking space. Very well connected, it takes just over an hour to London Victoria and Bluewater shopping centre is just 35 minutes away.

Minnie Dando Head of

hydenewhomes.co.uk 0345 606 1221

Marketing, Hyde New Homes

First Time Buyer August/September 2016

*Based on a 40% share with a full market value of £210,000

SHARED OWNERSHIP

LONDON, E14 Canary Gateway

FROM £115,500*

Canary Gateway is a cosmopolitan canalside development, which offers one, two and three bedroom apartments through shared ownership. They come with fully fitted kitchens and integrated appliances including an oven, fridge/ freezer and dishwasher. The en-suites, shower rooms and bathrooms come with ceramic floor and wall tiling. Just a 10-minute walk to Canary Wharf, Westferry DLR station is only five minutes away. To buy a Metropolitan property you need to be registered with Homematch, homematch.org.uk mho.co.uk 0203 535 2555 *Based on a 35% share with a full market value of £330,000

GREENWICH

FROM £98,750*

Enderby Wharf

L&Q has launched 13 one and two bedroom shared ownership apartments at Enderby Wharf, a striking new riverside presence on the North Greenwich Peninsula, which will play host to London’s first international cruise liner terminal in 2017. Consisting of 770 new apartments, the development has a distinctive exterior and homes come with fully integrated appliances in the kitchens and every property has a private balcony. Residents will have access to stylish communal landscaped gardens, an on-site crèche, and an eclectic mix of shops and restaurants. Bicycle storage is available throughout the development. Greenwich has excellent transport links with Maze Hill station, just a few minutes’ walk from the scheme, offering frequent fast services into central London – only 12 minutes to London Bridge, and less than half an hour to Charing Cross. *Based on a 25% share with a full market value of £395,000

lqpricedin.co.uk 0844 406 9800

FROM £83,250*

LEIGH-ON-SEA Albany Court These contemporary one and two bedroom apartments feature stylish, fully fitted kitchens with integrated appliances and some apartments also benefit from an en-suite bathroom to the master bedroom, bay windows and all come with an allocated parking space. Leigh-on-Sea has plenty to offer with a good choice of shops, bars and restaurants plus arts and cultural venues. Nearby there is a nature reserve at Two Tree Island and there is also a centrally located beach. Direct trains run to London Fenchurch Street taking between 45 minutes to just over an hour. guinnesshomes.co.uk/our-developments/albany-court 0300 456 0522

*Based on a 45% share with a full market value of £185,000

First Time Buyer August/September 2016

SHARED OWNERSHIP

LONDON NW1

FROM TBC

Camden Court Newlon Home Ownership is due to launch Camden Court offering 17 one and two bedroom apartments through shared ownership. The design of the apartment block has been carefully planned to create two beautiful courtyards surrounding a lovely water feature and the dual-aspect apartments are light and airy. In addition to the private balconies there are also two rooftop terraces, providing communal outside space exclusively for residents, with enviable views across north London. The open plan apartments have been carefully designed to provide plenty of storage and kitchens come with fully integrated appliances including an oven, hob, fridge/freezer, washing machine and dishwasher. Camden Town underground station is only a few minutes away, giving easy access to the whole of London and beyond. To register your interest go to camdencourt.co.uk 0800 058 2544

CAMBRIDGE The Blossom

FROM £121,600*

This stylish new selection of one and two bedroom apartments and three and four bedroom houses is conveniently located within walking distance of Cambridge city centre, the river Cam and Midsummers Common. Set around a secluded landscaped area the kitchens come with integrated oven, hob and extractor fan and parking is available. Perfect for commuters it takes just 50 minutes to London Kings Cross. One bedroom apartments are from £121,600 for a 40% share; two bedroom apartments are from £152,400 for a 40% share and three bedroom houses are from £204,750 for a 35% share. centraliving.org.uk 0845 304 1002 *Based on a 40% share with a full market value of £304,000

COLINDALE The Bureau

FROM £73,750*

The Bureau, built on the former site of the former Colindale Newspaper Library, is a collection of 33 one, two and three bedroom apartments available to buy through shared ownership. These beautiful new apartments, due to launch in September have a high quality interior specification, contemporary kitchens and bathrooms, as well as private balconies or terraces. The Bureau is conveniently located near to a range of local amenities including supermarkets, shops, parks and leisure centres. For shopping trips further afield, Brent Cross Shopping Centre is just over two miles away and the popular London Designer Outlet is around three miles away. Colindale tube station – on the Northern line – is a one minute walk away with services to Oxford Street taking just 25 minutes, and Bank Underground station 33 minutes. The area is also well connected by buses with frequent services to Watford, Stanmore, Edgware, Kilburn, and Hendon. Register your interest at networkliving.co.uk/development/bureau 0208 782 4213 Based on a 25% share with a full market value of £295,000 excluding parking

34 First Time Buyer August/September 2016

SHARED OWNERSHIP

SHARED OWNERSHIP – YOU’LL NEVER FIND A MORTGAGE! REALLY... LET’S SEE IF WE CAN CHANGE YOUR MIND? Metro Finance work with 26 housing associations and live, love and breathe shared ownership, helping to get ﬁrst time buyers into new affordable homes. Managing Director, Jon Lord explains how to get a mortgage The way it works is like this – you spot your dream home, go along for a viewing and fall in love with it or just like it a lot! 9 The housing association will then ask you to call Metro Finance and one of our mortgage advisers will carry out an affordability check. 9 Their job is to make sure the right share size is affordable. 9 They also search through all the shared ownership lenders for the best product - that’s 17 different shared ownership lenders – so no shortage! 9 At this point they then inform the housing association what your maximum share would be and that it is likely you could obtain a mortgage. 9 Thereafter, hopefully the housing association will tell you ‘it’s yours’ – we say hopefully because sometimes its eight buyers to one property! It may sound like a regimented process but you’ll probably find it very informing and one buyer said, ‘it was more enjoyable than I expected!’. If you are worried about this process, you can see live feedback from current

buyers at metrofinance.co.uk. Why do we tell you this? So we can give credibility to what I’m about to tell you next. Currently there are roughly 17 active shared ownership lenders out there, with between them a massive range of mortgage products. ‘Yes, but not enough 95% products for ftbs – I keep hearing’. Just last month I counted 22 products that would offer 95% loan to value, so that leaves you needing a 5% deposit so for example a £50,000 share would require £2,500 deposit. If you have access to a 15% deposit there would be up to 118 different mortgage products available! So why do some people say it’s harder to find shared ownership mortgages or there are not enough lenders? Firstly there’s the obvious, not all mortgage brokers or IFA’s specialise in shared ownership and this makes it harder to find mortgages and most will use ‘mortgage sourcing systems’ just like we do but will not realise when a specific lender doesn’t show their products. I’m genuinely not finger pointing,

36 First Time Buyer August/September 2016

think about it, how would they know for example that Mansfield Building Society do shared ownership when it does not show on a sourcing system. Really – I think it’s a combination of the above and an illusion caused by some lenders limiting the product types which is not to be confused with product numbers, for example: One well known mainstream lender only offers two and five year fixed rates for shared ownership, missing out on three year rates and tracker rates, so when you search for products this can cause the ‘illusion’ that some lenders are missing from shared ownership when really they just don’t offer the product type you are

hunting for. So, effectively this means a good shared ownership mortgage adviser needs to know what is not there! In my opinion, we have a fully functioning shared ownership mortgage market with lenders that are fiercely competitive and eager to lend to you – the shared ownership buyer. Your home may be repossessed if you do not keep up repayments on your mortgage. We charge no upfront fees, when your mortgage is submitted to the lender our fee of £399 is payable. Metro Finance is Authorised and Regulated by the Financial Conduct Authority ref 301701

SHARED OWNERSHIP

TAKE YOUR PICK

38 First Time Buyer August/September 2016

LOCATION FAC T F I L E

HOTspot

Average property price (April 2016) – £450,301 Property breakdown:* (Cambridge) Detached – £865,250 Semi-detached – £523,112 Terraced – £453,237 Flat – £303,910 *According to the UK House Price Index, April 2016

Cambridge - Top of the class S O M E FA M O U S RESIDENTS

Photos © Visit Cambridge

• Scientist Stephen Hawking • Actor Richard Attenborough • Pink Floyd’s David Gilmour • JLS singer Aston Merrygold • Comedian Stephen Fry • Author Ted Hughes

Famed worldwide for its stunning university spires and lively arts scene, Cambridge is a popular and pretty place to live and work. As new affordable homes emerge in the area, the green and compact city is becoming a top choice for ﬁrst time buyers The beautiful city of Cambridge, known for its spired colleges and prestigious alumni, has become synonymous with academic excellence. The 31 colleges dot the landscape and make up the famous university that has nurtured some of the world’s most famous academics, including Stephen Hawking and Charles Darwin. But though its heritage may be somewhat serious, it is far from stuffy. The young, innovative population keeps a thriving arts and entertainment scene buzzing, while the cafes, restaurants and bars continue to offer some of the best food and fun in the country. It’s also a green-focused and relaxed place to live and work – with walking and cycling encouraged by the many pedestrianised streets and cycle ways.

Punting on the River Cam

First Time Buyer August/September 2016

The compact and beautiful city is surrounded by stunning countryside, but is also just 50 miles north of London and is well connected to the capital, with trains running between the two cities within 50 minutes. So, with so much on offer, it’s easy to see why Cambridge regularly features at the top of the newspapers ‘best places to live’ lists – and with many new homes springing up in the suburbs, its popularity is continuing to grow.

HOMES AND RESIDENTS The city of Cambridge lies to the south of the county of Cambridgeshire and has drawn academics from the 13th century, when the famous university was founded. University life is a big part of the city’s identity, and students and staff make up a big part of the population, ensuring a lively and youthful culture. Property prices vary throughout the districts, and there are many interesting thriving communities in the outlying areas. Away from the grand buildings of the city centre, there is a good spread of new and old throughout the city and suburbs. The pretty villages of Fulbourn, Girton and Ickleton, for example are home to

chocolate-box perfect thatched cottages, while to the west, the new town of Cambourne, which was established in 2012, is home to hundreds of new affordable houses and apartments, and continues to grow, attracting increasing numbers of first time buyers to the area.

OUT AND ABOUT From high-end restaurants to budgetfriendly cafes, student pubs and pop-up bars, Cambridge is simply brimming with great places to eat, drink and be merry. In summer months, book a table at The Roof Terrace at the Varsity Hotel. Enjoy a peaceful dinner as you admire the stunning skyline as the sun sets. For some hustle and bustle, locals love to visit the Mill Road area, described as the bohemian side of the city. Mill Road is lined with a good range of cafes, food shops and restaurants serving menus from around the globe, as well as good pubs. While on Mill Road, pop into The Sea Tree. This award-winning restaurant serves a topclass seafood menu starting from just over £5. Visit cambridgefoodtour.com, a website dedicated to helping locals and visitors find the very best culinary treats on offer.

LOCATION

Away from the foodie scene, performing arts and entertainment play a very big part in Cambridge’s identity, and the city’s stages have been the stomping ground for many of the country’s most recognised actors and comedians, many of whom began their careers in the famous Cambridge Footlights (John Cleese and Emma Thompson to name but a few). Comedy lovers must visit the ADC Theatre, while a wider range of entertainment can be found at the Corn Exchange, the Arts Theatre and the Junction – all just a short distance apart. The compact city is incredibly green, with rolling countryside and outdoor pursuits very easily accessible. The River Cam is famed for punting, but the scenic riverside along with the many fens, also offer endless walking and cycling routes. Download walking routes, which take in historic sites, wildlife, canal and riversides from nationaltrust.org.uk.

SHOPPING Cambridge is a shopper’s paradise, with a wide variety of shops, boutiques and markets that cater for all tastes and budgets. Head to cobbled Market Square, where stalls sell everything from books,

bikes and plants to fresh organic produce and delicious street food. The city is also home to several big malls, including Grand Arcade in the centre of town, which is home to 60 high street and luxury retailers including a huge John Lewis and Apple Store. The Grafton shopping centre also offers a good choice of stores as well as a state-ofthe-art cinema. For a boutique shopping experience, travel slightly out of town to Burwash Manor, a converted barn that is now home to several independently owned shops, including children’s wear and unique gift retailers.

TRANSPORT There is no better way to get around Cambridge than by bike – the city has the highest number of cyclists in the country – one in four cycle to work – and its relatively flat landscape and cyclefriendly infrastructure makes it a safe and enjoyable place to ride. Both commuter and leisure cyclists can enjoy an impressive 80 miles of dedicated cycle routes to explore and get around. Public transport is also great, with an extensive bus network serving the inner city and outlaying towns, and frequent

Cambridge Cathedral

trains to local areas. Cambridge’s location also makes for fast commuting times to several major cities including London (50 minutes) and Norwich (1 hour 18 minutes). Of course, if you’re looking for a slightly more relaxed journey, take a punt down the River Cam to see the city from an entirely different perspective.

5 REASONS WE LOVE… …CAMBRIDGE • Punting on the River Cam • World-famous heritage • Buzzing entertainment scene • Laid-back culture • Beautiful architecture

HOMES on offer in the area… CAMBRIDGE

CAMBRIDGE

GREAT KNEIGHTON

Magna

Ninewells

Virido

FROM £395,000

FROM £345,000

FROM £350,000

Just a 15-minute walk from Cambridge rail station, for direct trains to London King’s Cross, sits this new collection of almost 100 new homes ranging from one to three bedroom apartments. The four, five and six storey buildings are arranged around communal, landscaped gardens, while inside, residents enjoy the bright and spacious living areas with at least one private balcony. The city centre lies within easy reach, for fast access to the many great restaurants, bars and entertainment venues on offer. A great base for those looking to enjoy the best of the city.

The 162 new homes at Ninewells form an entire new community just a few miles from the city centre. The homes fit beautifully with their natural surroundings, where residents will have amazing views out over Gog Magog downs. The properties here range from one bedroom apartments to five bedroom homes and offer the best of both country and city life. All of the homes are finished to a high specification, with wellsized rooms, en suites in the larger properties as well as outdoor space in the form of a balcony or garden. Residents also benefit from private parking.

Great Kneighton is a brand new community of over 200 new homes just four miles from the centre of Cambridge. The ecofriendly homes are perfectly located for enjoying the city, while making the most of the countryside and consist of apartments, duplexes and townhouses – which are arranged around communal green space. Each home incorporates a number of eco features, making for a sustainable and forward-thinking community. Getting around is easy, buses into the city centre run every 15 minutes, and by car the journey takes under 20 minutes.

hill.co.uk

First Time Buyer August/September 2016

AFFORDABLE HOMES

A NEW SPIN ON HOME OWNERSHIP When he’s not spinning decks as a DJ in his spare time, local Nottingham resident Jack and his partner Emma are kicking back, relaxing in their brand new, two bedroom home at Hollygate Park in Cotgrave. The couple recently moved into their new home after buying through shared ownership When asked why they decided to buy a shared ownership property, Jack’s response is quick and to the point, “Both Emma and I decided to buy a shared ownership property because it meant that the initial outlay of deposit funds were significantly less than if we bought something in its entirety.” Jack had heard about the property through an advert at a local estate agent and partly through his full-time job as a Commercial Property Surveyor. Both he and Emma, who works for a local charity organisation, had been planning to buy a home of their own for a while. Emma adds, “We had been thinking about buying a house for a few years, however, the actual decision to buy this house was quite spontaneous. We only really left the house that day to get some fresh air. As we lived a 10-minute walk from the scheme, we decided to have a look. The rest is history.” Jack said, “Having rented nearby before buying, it’s interesting to find out the difference between the monthly outlay while renting, compared

to that of owning a home through shared ownership in the Cotgrave area. We were paying £550 a month before and now we are paying around £570. So it’s a little bit more, however, the extra money is well worth the improvement in lifestyle for a bigger house with a garden and driveway. I’m paying into something where we will both see rewards from the equity over the years. It will certainly pay off.” As for the buying experience, Emma adds, “We were unfamiliar with the process initially, Jack knew a little about shared ownership but I had never really heard about it before. However once the affordability check was complete we found it quite smooth from then on. The whole process from start to finish took approximately three months.” The two bedroom home built by David Wilson comes with a fitted kitchen including Zanussi appliances, a fitted bathroom, carpeting and flooring and a 10 year NHBC warranty, giving the couple everything they need to be able to just move their things

in and enjoy their new home. Because buying a new property means there’s no chain involved, the buying process is simpler and more straightforward than buying an older property on the open market. Looking back on their experience buying with shared ownership from Metropolitan, the couple say they would recommend it to a friend. “Absolutely, I think it’s great and gives people, who may not be able to afford a full deposit on a house, the chance to buy a share they can afford, and eventually the rest!” Here Jack refers to staircasing, the term used for the process of buying some or

“WE WERE PAYING £550 A MONTH BEFORE AND NOW WE ARE PAYING AROUND £570. SO IT’S A LITTLE BIT MORE, HOWEVER, THE EXTRA MONEY IS WELL WORTH THE IMPROVEMENT IN LIFESTYLE FOR A BIGGER HOUSE WITH A GARDEN AND DRIVEWAY” 46

First Time Buyer August/September 2016

all of the remaining equity in a shared ownership home. And what does the future hold for Jack and Emma? “We intend to stay here for a good few years, whilst we climb our career ladders. It will be interesting to see how the rest of Hollygate Park develops and eventually we might even upsize into something bigger.” Metropolitan’s new homes in Cotgrave and East Leake are already generating plenty of interest. The Rushcliffe villages provide a perfect setting, offering a relaxed, semi-rural location for living within easy reach of major regional towns and cities including Nottingham, Loughborough and Leicester. To find out more about Metropolitan’s new homes, call the sales team on 020 3535 2555 or email mhosales@metropolitan.org.uk metropolitan.org.uk

OPEN MARKET

MOVE TO THE EAST FOR A BRIGHTER PROSPECT IN E15 The economic map of London is shifting and the population is heading eastwards with more Londoners living east of Tower Bridge than west, according to Transport for London (TFL)¹, and this is projected to increase by a further 600,000 over the next 15 years. This migration east was acted on by TFL, when it rezoned eight tube stations, including Stratford from Zone 3 to Zone 2/3, reducing the cost of travel for residents. This heralds good news for home buyers seeking to buy new, affordable well designed homes like those at Prospect East in up-and-coming Leyton Road E15, developed by East Thames Prospect East is now over 70% reserved and has proven particularly popular amongst young professionals, families and creative hipsters, keen to take advantage of an affordable property option and excellent investment opportunity boosted by the added cachet of living in a Zone 2 postcode. The latest collection of townhouses has recently launched, with prices starting from £742,500 – making them some of the most affordable townhouses in Zone 2. Prospect East is imaginatively arranged around a central landscape designed garden, and the scheme will benefit from planned communal amenities including a local grocery store and café. Its boutique collection of townhouses offers six terraced four bedroom houses and one standalone house with a private rear garden. Tony Harker, East Thames’ Director of Sales & Marketing said, “More than £13 billion of Olympics related investment was bound to make a difference and new infrastructure projects such as Crossrail are adding to the allure of East London; the change is astonishing and ongoing. Prospect East’s innovative neighbourhood concept reflects the local community, which is an eclectic mix of business, creative and artistic worlds. Our development is creating stylish housing to suit the varying needs of incoming homebuyers, who want contemporary, flexible living space, which is well designed, safe and secure, and situated in a vibrant up and coming area with easy access into central London.” The clever design layout of the townhouses offers spacious highly flexible living space arranged over three floors, with two separate terraces off the second floor. Large inset windows maximise the flow of natural light and intelligent planning

48 First Time Buyer August/September 2016

includes practical and useful storage across all three storeys. The townhouses all boast four good sized bedrooms. The master bedroom has an en suite shower room with a further two bedrooms on the second floor and the fourth bedroom occupies the entire third floor. The stylish kitchen is fitted to a high specification with quality integrated appliances. A finishing touch that creates an even greater sense of space

and connects the inside space with the outdoors is the two individual sunny roof terraces that can be enjoyed year round. Each property has bike and bin storage and parking spaces are available to purchase. Prospect East has excellent transport connections with nearby Stratford station now in Zone 2/3 and just a 10 minute walk away. From here fast services link to the West End, City, Canary Wharf and to the east via London Underground, DLR and National Rail. Prices for the four bedroom townhouses start from £742,500. For further information or to register your interest visit prospecteast.co.uk or call 020 8003 1718 ¹content.tfl.gov.uk/connectingthecapital-newrivercrossingsforlondon-dec-2015.pdf

HOME IMPROVEMENTS

FINDING TRUSTED TRADESPEOPLE Dave Quinton, Head Assessor at Which? Trusted Traders, gives his top tips on what to look out for when you select a trader, and what to make sure of once you’ve chosen one Chances are, when you’ve got the keys to your new property, you’ll have a list of jobs to do to make it your home. You’ll be thinking about how you can transform your kitchen, bathroom or garden, and before you know it, conflicting advice and recommendations are darted your way by friends, family members and colleagues. It can be a stressful process. We’ve heard that the biggest issue for homeowners is finding secure, honest traders who will do a professional job, at a reasonable price. Where you can’t get a personal recommendation, or if you need help choosing someone, Which? Trusted Traders can recommend local, endorsed traders who have been rigorously assessed to meet our code of conduct. But, whether or not traders come recommended, there are certain things to look out for when appointing someone to help create your new dream home: Step one – picking a trader A good trader will always be busy and you may have to plan ahead to get the best person for the job. Builders may be booked up for more than a year ahead, for example; 9 Don’t choose a trader you’re unsure about because they fit in exactly with your timetable. Be flexible with your work schedule 9 Aim to get at least three quotes for any job, large or small. Check all quotes are directly comparable – they should include all aspects of the work, such as travel and parking, removal of existing structures and disposal of waste 9 Look for traders with lots of relevant experience, and to check online for moderated reviews. Have they undertaken work similar to yours? Do they specialise in working on a particular style of property? Do they hold any qualifications? How long has the business been trading? Will they be using sub-contractors? Are they registered with relevant trade organisations particularly for safety critical work such as electrics and gas?

First Time Buyer August/September 2016

9 Not all traders will have insurance that protects their clients. Always ask to see the trader’s insurance documents, and don’t be afraid to discuss what happens if you’re not satisfied with the work. Good traders will produce insurance documents and talk about complaints procedures, ensure you have a certified ombudsman to go to for alternative dispute resolution (ADR) – if someone is reluctant to provide information, you should avoid them! Step two – once you’ve found a trader Get a proper contract agreed before the work starts for big jobs like building work. This will help avoid and resolve any disputes that may arise. For smaller jobs, a letter of agreement that is signed by both parties should suffice. Ask for, and read, the entire trader’s terms and conditions and make sure they are fair. If you agree to the contract in your home, by law you have 14 days to change your mind and you must be given cancellation rights on the right form. Don’t go ahead without it. The contract or letter of agreement should include: 9 A description of the job 9 Agreed start and finish dates 9 Agreed price for the work and how this will be paid - for example, a lump sum at the end, or stage payments as work progresses – and whether any part of the payment can be withheld in the event of a dispute arising between the parties, this is known as set-off and by law a trader cannot deny you that right 9 Requirements that the trader leaves the site in a tidy state at the end of the work and what they will do if you are not completely satisfied Step three – paying a deposit The size and nature of the work will determine whether you need to pay a deposit. Never pay more than 25% of the total cost up front, and ensure the final instalment is payable only once you’re

happy with the work. For very large projects ask if there is insurance backed deposit protection in place should the trader go bust and ask for details of the policy. Step four – protecting yourself Take precautions to protect yourself in case you are let down – by law all business documentation should contain the ownership of the business, address and full contact details. If it isn’t there, be wary about using them. Step five – make sure you’re covered Find out how much potential harm may be caused to your property as a result of the work, and make sure this is covered by your contract – check your own insurance too. Step six – be prepared Check what preparation you’re required to have done before the trader arrives including any planning permissions that may be needed and if there is going to be noise and disturbance speak to your neighbours too. To find a Which? Trusted Trader, you should visit trustedtraders.which.co.uk

AFFORDABLE HOMES

SPOTLIGHT ON: HACKNEY First time buyers shouldn’t be put off by the high price tag however, as some fantastic shared ownership developments are coming to the area, giving first timers the opportunity to get on the ladder in this thriving borough. So what makes Hackney so popular?

Over the last decade Hackney has become one of the most sought after places to live in London. This popularity has seen the borough experience the largest house price rises in London, moving up to become the sixth most expensive borough in the capital. The average house price now stands at £699,969 (Land Registry April 2016), over £150,000 higher than the London average

MARKETS AND SHOPPING Dalston Curve

Hackney is packed with independent producers and retailers, from fashion and art to furniture and books, making a refreshing change from the usual high street fare. For bargain hunters, the Burberry outlet store near Hackney Central station is paradise. Hackney is also home to fantastic markets, including Netil Market and Broadway Market. In recent years Broadway Market has become the go to place for locals and tourists to flock to on the weekend. Packed with stalls selling street food, vintage clothing and art, alongside established restaurants, cafes, galleries and shops the market has something for everyone.

FOOD & DRINK Hackney boasts some of the most innovative restaurants and bars in the city, with more joining their ranks on an almost weekly basis. From cheap and cheerful Vietnamese restaurants on Kingsland Road, to street food stalls at Netil Place, to Michelin star restaurants in Shoreditch, the restaurant scene is thriving. The borough is also home to a number of brewerys putting the area on the map, including London Fields Brewery and Beavertown.

CULTURE AND NIGHTLIFE Dalston is one of the most vibrant spots in the borough attracting a young fashionable crowd with its late night bars and clubs. However there are also plenty of pubs for a more relaxed evening or afternoon out. Local venues including Hackney Empire, Hackney Picturehouse and Oslo are some of the top spots for theatre, comedy, film and music.

GREEN SPACE Surprisingly, Hackney is one of the greenest boroughs in London with 58 parks and public gardens. Residents can enjoy the picturesque route along Regent’s Canal and the two largest parks Clissold Park and Victoria Park, great for

54 First Time Buyer August/September 2016

families needing outside space and for keeping fit.

HOUSING MIX The borough offers a great mixture of housing from attractive Victorian terraces and Georgian mansions around garden squares, to canal-side apartment blocks and warehouse conversions. This diversity in housing stock gives buyers many options to choose from.

EXCELLENT TRANSPORT LINKS The opening of the Overground in 2007 and the subsequent East London Line extension in 2010/11, was a complete game-changer for Hackney. Before the Overground, Hackney was poorly connected to central London and mainline train stations, and residents had to rely on the bus. Now, the Overground provides quick easy access to the City, central London and key transport hubs. Properties close to key stations such as Haggerston and Dalston Junction are particularly popular.

WHAT’S ON OFFER? Dalston Curve, E8 has six, one and three bedroom shared ownership apartments

available, which will launch in September 2016. Dalston Curve is within walking distance to both Dalston Kingsland and Dalston Junction Overground stations and is situated right at the heart of Dalston offering a variety of independent shops, cafes and pop-up bars. The apartments are part of the Taylor Wimpey development and offer a high specification, integrated kitchen appliances and flooring throughout. Some apartments come with their own balcony while others have access to a large communal roof terrace. The Great Eastern Building, E8, is located just behind Hackney Town Hall on Reading Lane and will offer eight lovely one and two bedroom apartments. The development is within walking distance of London Fields, which offers a variety of outdoor events and is the home to one of London’s most popular lidos. Hackney Central and London Fields stations are also a short walk providing brilliant transport links for busy commuters and those wanting to explore London. The apartments offer contemporary design and communal gardens creating an exciting new community in the heart of Hackney. To register your interest in these properties contact the shared ownership team at Currell on 020 7704 5618 or email sharedownership@currell.com

AFFORDABLE HOMES

Southall Village

WESTERN PROMISE With a thriving cultural scene and unrivalled transport links, London’s western suburbs are once again asserting their place at the top of every ﬁrst time buyer’s list For the astute homebuyer, west London has always been the place to be. It was during the 1800s, with the expansion of the railways, that the capital’s western suburbs became the most desirable and in-demand, offering links to the city centre and a lifestyle that was unmatched elsewhere. It is these same reasons that see west London retain its allure to first time buyers today. Handsome homes and plentiful open spaces contribute greatly to the quality of life, while transport links both into central London and out to the rest of the country make it one of the capital’s best-connected areas. But now there’s an added attraction: the increasingly diverse and thriving cultural scene. An influx of independent retailers, vintage fashion boutiques and pop-up traders means that the area now rivals anywhere in the capital when it comes to shopping. And at the same time, a host of cool bars, revamped pubs and must-visit restaurants have transformed nightlife and leisure options, giving much of west London a buzz, colour and life that east London would be envious of. In Hanwell and Southall, both in the London Borough of Ealing, there are two developments that reflect and complement the changing face of west London.

First Time Buyer August/September 2016

St Bernard’s Gate, on the site of a former hospital, is a project that is fusing the past and the future, creating 270 new homes in bespoke buildings that complement existing Victorian structures such as a gatehouse and chapel. St Bernard’s Gate, which is being undertaken by Catalyst, is bringing life to a previously neglected site that chimes with the vibrant and diverse local culture of the area. Follow the course of the Grand Union Canal a little further west and you come to Southall Village, another new development from Catalyst. It’s first phase will see the release of 121 homes for private sale, offering canalside, dockside and parkside living, Southall Village is transforming one of London’s most overlooked corners into one of its most desirable. As the area has changed and the buzz has increased, Southall has grown in stature and outlook; the new homes at Southall Village are the perfect place from which to experience this excitement first hand.

the opening of Crossrail in 2018 will be a transformative moment for west London. Both Hanwell – where St Bernard’s Gate is located – and Southall will have new stations, making them more connected than ever, from Reading in Berkshire to central London and beyond to Shenfield in Essex. Bond Street station in London’s west end will be just 15 minutes away by Crossrail from Hanwell (17 minutes from Southall), the city a little over 20 minutes and Canary Wharf less than half an hour. In St Bernard’s Gate and Southall Village, Catalyst is creating two developments that are perfectly located to take advantage of the changing cultural scene in west London. For the first time in a generation, it is west rather than east London that can lay claim to being the cooler half of the capital and Hanwell and Southall are at the epicentre of this shift. Throw in the area’s open spaces, great schools and transport links and there’s simply no contest. In the battle of the capital, it’s west London that wins.

CROSSRAIL

Prices are yet to be confirmed. Further information about St Bernard’s Gate and Southall Village can be found at stbernardsgate.co.uk and southallvillage.co.uk

But it is not only the Grand Union Canal that links St Bernard’s Gate and Southall Village. In much the same way as the railways kick-started the area’s rise, so

Contact Catalyst on 0300 456 2074

FOR SALE

THE CREAM OF THE CROP Each month, FTB scours the market for the best starter homes for first time buyers. Whether youâ&#x20AC;&#x2122;re looking for the home of your dreams to suit a smaller budget or a plush city pad, we hope you will enjoy our selection (Prices and availability correct at time of going to press)

BETHNAL GREEN

HOIC FIRST C

D EASTUESN IVE EXC+L + +

City life/London Homes p60-61

WA T F O R D

HOIC FIRST C

REAL LIFE

HISTOMRE IC H+O+ +

Affordable Homes p62-63

Shared ownership p64

First Time Buyer August/September 2016

FOR SALE

CITY LIFE/LONDON BETHNAL GREEN

HOIC FIRST C

EASTUESINVED EXC+L + +

Titanium Point Tucked away along the tranquil streets that run along the Regent’s Canal, this new collection of homes in Bethnal Green, a famous hub of the East End, offers a slice of exclusive London living. The location of these homes is great for getting around: cyclists have a direct route to Camden or further east via the canal, while Shoreditch and the City are very close by. The homes are beautifully designed and boast modern, luxurious features, with floor-to-ceiling windows, timber flooring, spacious balconies – many overlooking the canal. Guinness Homes 0300 456 0522. guinnesshomes.co.uk

60 First Time Buyer August/September 2016

FROM £570,000

FOR SALE CAMBERWELL, SOUTH LONDON

FROM £405,000 ADDISCOMBE, SOUTH LONDON

FROM £TBC

Camberwell on the Green The bustling corner of Camberwell is home to this new collection of 92 studio, one, two and three bedroom homes. The six-storey development sits just moments from the trendy restaurants and bars of the area as well as several supermarkets and buses that zoom into central London in under 30 minutes. Peckham is just a short

B O W, E A S T L O N D O N

walk, while Brixton is just a short bus journey away. Inside, the homes are beautifully designed to reflect their artistic surroundings. Features include wood-look flooring, beautiful tiled bathrooms and large private balconies. Frasers Property 020 7368 4836 camberwellonthegreen.co.uk

Penhurst Square Located just a mile from East Croydon station, this new development is in a great spot for commuters - trains to London terminals can take as little as 16 minutes. The homes range from one to three bedroom apartments to four bedroom family houses and offer quality fittings and fixture throughout, including fitted

FROM £420,000 ORPINGTON, KENT

appliances. There are plenty of amenities and parks in easy reach. For excellent shopping facilities, visit Croydon High Street, while foodies are in paradise at the Restaurant Quarter in South Croydon. Bellway Homes 0333 577 0664 bellway.co.uk

FROM £335,000

St Paul’s Square Right in the heart of the East End, Bow has bloomed in recent years and has become one of the most desirable places to live in the city. Transport links are great, with Central Line services running from Mile End to the West End in a matter or minutes, several DRL stations and speedy buses into Shoreditch and the City. The

homes at St Paul’s Square offer stylish contemporary design, timber effect flooring and brushed steel featured throughout. Each home also benefits from a wellsized balcony or terrace. Countryside Properties 07900 769 752 countryside-properties.com

Brunswick Square The one and two bedroom apartments available at this new development sit right in the heart of Orpington, a bustling town with many great shops and amenities. The development forms part of wider regeneration plans which are set to see the town bloom even further, as its great commuting times continue

to appeal to first time buyers. The homes are thoughtfully designed, with well-sized living/dining areas, en suite bathroom from the master bedroom and a well-sized balcony. All this just 18 minutes by train from London Bridge station. Berkeley Group 01689 669 066 berkeleygroup.co.uk

First Time Buyer August/September 2016

FOR SALE

AFFORDABLE HOMES FROM £265,000

WA T F O R D

HOIC FIRST C

HISTOMRE IC H+O+ +

Rembrandt House Rembrandt House, once a printing house for glossy magazines including Vogue has been transformed into 43 one, two and three bedroom loft-style apartments – some with mezzanine levels. The homes’ interiors will be finished to a high spec, with some beautiful features, designed to reflect the classic exterior of the building. Watford is an up-and-coming town with a lot going on, but it is also very well connected to London. Nearby Watford and Watford Junction stations connect the town to the city via the Metropolitan Line and Overground service, in as little as 20 minutes. Henley Homes 020 7368 4830 henley-homes.co.uk

First Time Buyer August/September 2016

FOR SALE FROM

CAMBERWELL

£TBC SHARED OWNERSHIP

FROM £138,750*

CRICKLEWOOD

The Gallery Due to be completed in 2018, this collection of new homes offers first time buyers a great chance to buy in a buzzing part of the city at affordable prices. The Gallery is beautifully designed and interiors are bright and spacious, with floor-to-ceiling windows and open-plan living/dining areas. Camberwell is a lively town, just

CHELMSFORD, ESSEX

moments from popular Peckham and Brixton. It is also so easy to get into central London, with regular bus services running throughout the night. You can also catch the Northern Line from nearby Oval underground station. Peabody Sales 020 7021 4842 peabodysales.co.uk

FROM £53,750*

Gladstone Village while Jubilee Line services from Dollis Hill station take around 15 minutes to reach central London. Gladstone Park is a beautiful green space with a great café and gym and offers great views over the city from the summit.

Located in a quite corner of sprawling Gladstone Park, this new collection of two, three and four bedroom houses forms part of the wider regeneration of Cricklewood. Both Cricklewood – home to a lively high street and good shopping facilities – and Willesden – for pubs and bars – are within a short walk,

Octavia Living 020 8469 1133 gladstonevillage.co.uk

*Based on a 25% share of the full market value of £555,000

FROM £292,995

THE GABLES

L&Q @ Beaulieu Set within the former parkland of the Tudor palace of Beaulieu, the 22 homes here available through shared ownership form part of the wider development of a new neighbourhood in Chelmsford. Homes range from one bedroom apartments to two bedroom homes that are set to launch in late 2016. The development will eventually

include new facilities and transport links, as well as new schools and landscaped parks. Chelmsford lies just 30 miles east of London and is a thriving city that’s just a short train journey to London and 40 minutes by car to the coast. L&Q 0844 406 9800 lqpricedin.co.uk

*Based on a 25% share of the full market value of £215,000

Peterborough The new collection of homes, located in Peterborough range from three to five bedroom houses and are designed with modern living in mind. The three bedroom homes feature separate kitchen and living rooms, two bedrooms on the first floor, with the third bedroom located on the top floor – all with private bathrooms.

Residents also benefit from private parking spaces or garages as well as good-sized gardens. Peterborough is perfectly located for getting around, with easy access to Cambridge, Essex and London. Weston Homes 01279 873 300 weston-homes.com

First Time Buyer August/September 2016

REAL LIFE

Shared ownership: Putney Only 16% of current renters envisage buying a property on their own rather than as part of a couple or with a family, highlighting how expensive the current property market is for single people¹. For two sisters from South Wales, Alexandra and Victoria Webb, buying alone was never an option, and they recently purchased their ﬁrst home together, thanks to the shared ownership scheme at Octavia Living’s Walpole Lodge, in Putney ¹uk.businessinsider.com/frist-direct-london-property-surveya-fifth-of-homeowners-say-they-will-never-settle-2016-7

FAC T F I L E

Alexandra Webb, an IT consultant, 25, had been renting in Clapham for a year whilst saving for a deposit for a place of her own. Meanwhile Alexandra’s younger sister Victoria, 23, who works in fashion, was also renting in London with their older sister Kimberley. Alexandra and Victoria were interested in new developments, but due to the rising costs of housing, their options seemed limited. That was until they learned about the benefits of shared ownership. After looking at various developments, they found Octavia’s Walpole Lodge, and immediately knew they had found their first home. Alexandra said “Most new build developments in London were out of our price range or offered very little value for money. However, Walpole Lodge was one of the few developments we saw offering a high specification and two bedroom apartments that offered plenty of space. The location was spot on too, as we know the area really well.” As first time buyers, the sisters made sure they did all their research and knew what to expect from the buying process. Alexandra added, “Buying a home was a new experience for us that we didn’t want to get wrong, so we made sure we got lots of advice. The whole process with Octavia was very simple and straightforward. We just couldn’t have asked for a better first time experience.” Now happily settled in their new

First Time Buyer August/September 2016

Property: Two bedroom apartment Market value: £505,000 Share bought: 25% Monthly outgoings: Mortgage repayments: £330; subsidised rent: £690; service charge: £160

Putney pad, the sisters couldn’t be happier. Alexandra continues, “Our apartment has two bedrooms, one double and one king size, with accompanying bathrooms and an open-plan design, which suits us very well. There is also a shared roof terrace which we’re looking forward to using!” Popular Putney is a perfect location for the siblings too, offering everything they need. “We know Putney well, and I’m a member of the local tennis club, which is very close by. Everything we need is on our doorstep; we are so thrilled that we could afford to buy our own home in such a prime location. East Putney underground station is right opposite and my commute to work is less than an hour.” The monthly mortgage for the sisters’ two bed apartment is £330 and with their combined incomes, the rent is

a comfortable £690 a month. “Buying together meant we were able to combine savings and put down a larger deposit, reducing the monthly payments from the start. When I was renting, the monthly rent was £625, so buying a shared ownership property with my sister has proven to be cost effective as well as helping us take the first step to home ownership.” The siblings have enjoyed personalising their new apartment and have plans for further decoration. Alexandra said, “I am in charge of the finances and my sister Victoria is in charge of the decorating. With our home being a new build, it didn’t need a lot done, which was great. We love having the freedom to decorate and personalise the apartment how we want. The two of us get on very well, so living together is fun. It’s so much easier when you live with someone you know and trust. We have discovered we know a few residents here already, and we’ve been getting to know our neighbours – which includes our older sister Kimberley, having bought herself a one bedroom apartment on the floor above!” The scheme is specifically designed for first time buyers whose household income is less than £71,000 a year and priority will be given to those who live or work in Wandsworth. octavialiving.org.uk 020 8354 5500

“BUYING TOGETHER MEANT WE WERE ABLE TO COMBINE SAVINGS AND PUT FORWARD A LARGER DEPOSIT, REDUCING THE MONTHLY PAYMENTS FROM THE START”

COMPETITION

The magic of Venice WIN! in Docklands What a wonderful treat to spend the night in a luxury hotel and enjoy dinner at Terrazza on the Thames at Columbia, Docklands, a Venetian-inspired pop-up restaurant. Decked out with gondolier-style booths and candlelit lanterns you will imagine that you are sipping your Prosecco in the beautiful city of Venice

A NIG DOUBLETRHT’S STAY AT PLUS DIN EE BY HILTON NER ON THE AT TERRAZZA TH AT COLU AMES M DOCKLA BIA, WORTH NDS, £350

DoubleTree by Hilton is a unique hotel with stunning views across the Thames. Spread across three buildings, including the Grade 1 listed Columbia Wharf dating back to the 17th century, the 379-room hotel sits beside the Thames and boasts London’s only dry dock and private pier with an exclusive ferry service and features two expansive riverside terraces, one with a bar and barbecue plus a 24-hour fitness centre. All the bedrooms have stunning views of the London skyline and include floating-style beds, tea and coffee facilities and complimentary WiFi. The en-suite bathrooms come with luxury toiletries made with essential oils – perfect for a little pampering! The riverside terrace features a bar and DIY barbecue menu providing the perfect spot for al fresco dining as it is covered, heated and decked with couches and blankets for chilly days or nights. The fitness centre is open around the clock and is perfect for a work out to start off the day or a spot of yoga in the evening to wind down. This is the only London hotel to have its own private pier and a cross-river shuttle ferry to the Canary Wharf Pier, which runs approximately every 10 minutes.

PROSECCO COCKTAILS Peppered along the waterside terrace, choose a drink from a list that focuses on Venetian Prosecco, Prosecco-based cocktails and wines from premium Italian wine specialist Bolla, one of the most prestigious Italian wineries dating back to 1883. Prosecco is one of the most widely appreciated wines in Italy and has become famous all over the world. The Bolla Prosecco Extra Dry is a delicious wine that pairs seamlessly with cicchetti (Venetian tapas) and pizza as well as many Prosecco-based cocktails. It’s only fitting to serve Venice’s signature cocktail, the Bolla Bellini, featuring peach purée, topped up with Bolla Prosecco. The bar will also be serving an array of cocktails including the Rossini and the Bol-jito,

66 First Time Buyer August/September 2016

a refreshing twist on summer staple, the Mojito, both of which are topped up with Bolla’s signature fizz.

VENETIAN TASTING PLATES The food menu is shareable and finger-friendly. Bruschetta with tomato, truffle, wild mushroom, ricotta and almonds; arancini balls with arrabbiata dipping sauce; and polenta chips

with salsa verde and garlic mascarpone dip make up a few of the small plates available. Soak up all those cocktails with the Bolla Prosecco pizza: hand-stretched to perfection and layered with Prosecco-marinated buffalo mozzarella, Parma ham, rucola and a spicy tomato sauce before being crisped in a special, outdoor pizza oven. hilton.com/London

COMPETITION

HOW TO ENTER Answer the following question:

What year does wine specialist Bolla date back to? Send your answer with your full, name, address and telephone number to: lynda@firsttimebuyermag.co.uk Closing date: 19 August 2016

THE PRIZE… 1ST PRIZE – WORTH £350! One lucky reader will win one double room with breakfast for two guests sharing, dinner at Terrazza on the Thames with two Bolla cocktails, a bottle of Bolla to share and a sharing platter, two Pizzas and two digestifs. Check in after 3pm, check out by midday. T&Cs This prize does not include the mini bar or room service. The prize has to be taken by 29 September 2016. The prize is non-transferable and no cash alternatives will be given. Competition is open to UK residents only.

First Time Buyer August/September 2016

FIRST MEAL

FIRST HOME, FIRST MEAL Summer is the time of year to enjoy salads which are perfect for a light lunch, to take on a picnic or with a BBQ. Lerrico Messina, Head Chef at Le Restaurant de PAUL, Tower 42, created this delicious recipe for the perfect sunny day With experience ranging from restaurant groups to fine dining and five-star luxury hotels, Lerrico Messina is Head Chef at Le Restaurant de PAUL, Tower 42. Following five years experience as a sous chef in a number of restaurants in his native South Africa he moved to the UK in 2010. He first joined the Wolseley in Mayfair as a senior sous chef serving modern European cuisine and was also part of the restaurants training programme. He then moved into more casual dining with stints at Havana in Brighton and The Roebuck in Chiswick before returning to central London. Still in his late twenties, Lerrico joined PAUL at their original restaurant in Covent Garden, before overseeing the opening of their new restaurant, at Tower 42 last September.

SALADE FRISEE AUX QUINOA

Ingredients (Serves 4) For the honey mustard dressing 20g wholegrain mustard 20ml cider vinegar 60ml extra virgin olive oil (I normally use 40ml rapeseed and 20ml olive oil) 20ml honey For the salad 1 head of frisee 1/3 cup uncooked quinoa, rinsed 1 small aubergine, diced 1 small courgette, diced 1/2 small butternut squash 1 tablespoon olive oil Maldon salt to taste 2 tablespoons chopped fresh basil leaves 2 tablespoons chopped fresh mint leaves 40g pomegranate seeds

METHOD FOR THE DRESSING 1

Put the mustard into a clean bowl and whisk in the cider vinegar. Whisk in the honey then slowly whisk in the olive oil. Mix well and season to taste. Pour the dressing into a jar with a tight-fitting lid and store in the fridge. It generally lasts up to a week.

METHOD FOR THE SALAD 1 2

Preheat oven to 220Â°C. Place the aubergine and butternut squash into a roasting dish and drizzle with 1 tablespoon of olive oil and toss. Add a little more if necessary; you want enough to lightly coat the vegetables. Sprinkle with salt and pepper. Roast for about 12 minutes and add the courgette and finish cooking

68 First Time Buyer August/September 2016

until they are softened and beginning to brown (roughly about 12 â&#x20AC;&#x201C; 15 minutes). Set the roasted vegetables aside to cool. To cook the quinoa, combine the uncooked quinoa with 2/3 cups of water in a small saucepan. Bring to boil over medium/high heat, then cover and reduce heat to low. Simmer until the water is absorbed, about 15 minutes, then remove from heat and let the quinoa steam with the lid on for 5 minutes. Remove lid, fluff the quinoa with a fork and set aside. Add the roast vegetables, quinoa, basil and mint into a large serving bowl. You can add half the pomegranate seeds now or save them for the garnish on top. Then add 20ml of the dressing and the frisee. Gently stir to combine. Season generously with salt and pepper. Store in an airtight container in the refrigerator for up to 3 days.

FIRST MEAL

FTB’S FAST FOOD Summer is a time to be outside with friends and family enjoying a delicious BBQ. We tested a range of BBQ food from the leading supermarkets to see which are the tastiest

TEST WINNER

BBQ FOOD

ASDA

Relish selection, £2.99; chipotle barbecue coleslaw, £1.99; 12 piri piri piglets, £4.00; 2 piggy in the middle burgers, £4; 6 Thai salmon mini burgers, £4

Good & Balanced American smoky chipotle pulled chicken salad, £2.00; maple bacon flavour ketchup, £1.00; butcher’s selection prime beef sirloin steak, £3.69; butcher’s selection world flavours chicken wings, £5.00; butcher’s selection 4 British pork & steak top dogs, £2.00

TESCO

finest* limited edition Brazil sausages, £2.50; sweet & smoky BBQ pulled chicken crown, £4; finest*ultimate slider kit, £5; halloumi vegetable kebabs, £2; Padron peppers, £1.50 FTB SAYS: A really unusual selection to suit everyone’s

SAINSBURY’S

M&S

BBQ pork & pepper kebab, £3.50; 2 TtD beef burgers with caramelized red onion, £3; 2 TtD brioche burger buns, 90p: TtD giant cous cous & feta salad, £2; king prawns in garlic & parsley, £3; BBQ sweet chilli chicken thighs, £3.50

6 pastrami posh dogs, £4.50; asparagus spears, £3; smokehouse beef brisket firepit beans, £5; ragin’ Cajun chicken flatties, £4.50; 4 steak & cheese burgers, £4

tastes. We thoroughly enjoyed

FTB SAYS: The chicken flatties were really flavoursome and

WAITROSE

the brisket and beans had

the peppers, which came

FTB SAYS: We really enjoyed

good-sized chunks of meat and

FTB SAYS: The piglets were

FTB SAYS: For meat lovers

with olive oil and sea salt.

the kebab, which came with a

the paprika helped give them

good and spicy and we liked

the sirloin steak was delicious

The chicken crown was well

good amount of BBQ sauce.

a good bite. The burgers were

the addition of the lemon and

and very well priced. The

marinated in a blend of spices

The sweetness of the brioche

an unusual and interesting

oregano. The Thai burgers were

chicken wings included

and was very easy to shred.

buns worked very well with the

combination but unfortunately

also delicious and you could

tandoori, Chinese, Caribbean

For veggies, the delicious

burgers and the addition of the

we couldn’t taste any cheese.

really taste the lemongrass and

and Brazilian flavours and

halloumi kebabs came with a

red onion added real flavour.

The asparagus were delicious

coriander. The three relishes

would be ideal for a large

great selection of vegetables

There was a good amount of

especially cooked on the BBQ

were a little bland and rather

gathering. The salad was a

and we loved the addition of

feta in the salad and we loved

and came with a lovely chilli

on the small side so wouldn’t be

little lean on the chicken and

aromatic rosemary.

the giant cous cous!

and garlic drizzle.

ideal for a bigger party.

rather bland.

+++++

++++

+++

PERFECT FOR SMALL KITCHENS If you are short on space, but cooking is still a priority then a versatile, multi-tasker pan is the perfect solution. Stellar’s new chefs pan with its wide flat base and tall sloping sides will work as a frying pan or wok. Made from heavy-duty stainless steel, it is suitable for use on all hob types, is oven safe up to 201oC and is dishwasher safe. The pan is also easy to clean and store. Stellar chefs pan from £20. sales@horwood.co.uk 0117 940 0000

First Time Buyer August/September 2016

LEASEHOLD

WHAT YOU NEED TO KNOW BUT DIDN’T KNOW WHERE TO ASK!

Roger J Southam, Non-Executive Chair of Leasehold Advisory Service

The excitement of your new home is all consuming. It is like the ﬁrst weeks with your partner, or the excitement of the shiny new toy – it is all embracing. Of course as with any consuming thing there is a reality behind it Does your significant other pick their teeth, leave their clothes scattered or obsessively tidy up? These are the things you notice when the excitement wains, when the newness wears off. Your home can be the same. You go around the new development, see the show flat, fall in love with the dream of the furniture. The view is ideal. But in reality the home is the walls and the fixtures, all the other stuff comes from you - not some interior designer. Of course, the experience of communal living can come as a shock. Communal living? Well not in the sense of sharing space but in reality if you buy a flat in a block then you have to respect what other people do and how other people live. Recently Leasehold Advisory Service (LEASE) initiated a survey sponsored by Brady solicitors. The survey conclusions are fascinating and illuminating. Basically the message is property managers need to keep improving and communicating with the leaseholders more but there is also the necessity for more education for leaseholders to help them understand what they are buying into. First Time Buyer magazine is incredibly far-sighted in the guidance, articles and information it provides for you to help you buy your first home. In the last issue of the magazine there was a great article on service charge. Service charge is one area where you can never know enough and there will always be suspicion on the expenditure or someone saying

First Time Buyer August/September 2016

they could undertake work cheaper! What LEASE is continually endeavouring to do is provide the education to help and assist leaseholders and prospective leaseholders to better understand their rights, responsibilities and ownership. This is an ongoing journey of course and in reality never ending. We have relaunched the LEASE website as part of this which is cleaner, crisper and with much easier navigation. We would recommend you search the website to answer any questions you may have on all matters leasehold, find out your rights and responsibilities along with understanding what you are buying into. There is a one page document that estate agents should be handing out to all prospective purchasers which you can find on the website. It was produced in conjunction with residential property trade bodies and organisations to give an understanding of what it means to buy leasehold. There is also a two page version, which gives more information. From there it is

making sure that you get answers to any questions you have. In fact every question you could possibly have will be answered on the LEASE website. There are a number of factors that will result in more leasehold property and therefore it is highly likely your first home will be leasehold. The Housing Act 2016 is introducing a commitment on starter homes. This is in addition to the Right to Buy which has been extended to renters of housing association homes. Given that a lot of housing association property is flats then the renters will become leaseholders and need to know their rights and obligations. The starter homes are being forecast to mainly be developed in leasehold blocks of flats. The reasons for this are ones of economics and development profitability. To achieve the desired discounted prices for the starter homes there has to be the maximum development on a site and that usually means blocks of flats. The result is more leasehold properties coming through and the probability that your first home will be leasehold. Therefore knowing your rights and obligations would seem sensible. Having easy access to them is what LEASE offers. The advantage of having knowledge of leasehold is that when you come to viewing prospective homes you can wallow in the show home, get lost in the views, and dream of your life in your new home with eyes open and clear understanding. When you have bought your home LEASE will be there to help with initial advice and the website will be there for questions as they arise and occur. Of course First Time Buyer magazine gives you the wealth of information as well to guide you. lease-advice.org

FINANCE

Mortgage Clinic As a ﬁrst time buyer, understanding mortgage terminology and knowing what mortgage is right for you can be difﬁcult, so David Blake at Which? Mortgage Advisers has joined up with First Time Buyer, to answer your mortgage-related questions

As a first time buyer, is it possible for me to consider a buy-to-let property that I could rent out?

It is possible for a first time buyer to purchase a buy-to-let (BTL) property, but it’s important to note that only a handful of lenders will consider this. The lender will typically assess the mortgage like a residential mortgage, with income playing a major part in how much you can borrow. Along with personal income, the anticipated rental income of the property will also be a determining factor on how much can be borrowed. Most lenders won’t lend more to a first time buyer on a BTL basis than they would on a residential basis - this is, of course, to stop people taking out a BTL mortgage and then living in the property. Bear in mind that you can’t live in the property without your lender’s consent. Typically, a larger deposit of at least 25% is required. We often see both a first-time buyer and an existing owner buying a BTL property together - a parent and child for example. It’s crucial that you have a contingency plan in place in case you experience ‘rental void’ (having no tenants) and find yourself without a rental income. You should also factor in the cost of property repairs and consider taking out landlord insurance. Owning a BTL property is likely to have tax implications, both in the form of income tax from your rental income and, if you go on to purchase additional property, you could be liable for increased stamp duty. If you borrow money on a residential basis in the future, you could also find that a BTL mortgage could impact on this. If the BTL property is self-financing, then this is usually OK, but every lender has their own way of assessing a borrower who has a BTL mortgage in the background.

If I’m buying a house that needs renovation work, can I factor in the cost of this work into my mortgage?

A mortgage and the cost of renovation are two different things - a lender won’t lend to you on the basis of you carrying out work on the property. These costs would need to come from you.

First Time Buyer August/September 2016

David Blake has more than nine years experience in the financial services industry and prides himself on helping first time buyers get on to the property ladder. In his current role at Which? Mortgage Advisers, David and the entire team provide independent, impartial advice and search thousands of mortgage deals, to help buyers find the deal that is right for them.

If you have enough money in the form of a deposit, you could hold some of this back to pay for improvements, but as a result of having a higher loan-to-value mortgage, you’re likely to pay a higher rate of interest on the mortgage. Although it doesn’t solve the immediate issue, it could be feasible for the lender to provide you with additional money after the renovation is complete, on the assumption that the property has increased in value but approach this with caution! A personal loan is another option, but should be considered in the context of affordability, alongside the cost of mortgage repayments. The last thing you want to do is take out a mortgage and loans that you can’t afford if rates increase. Affordability is key, so consider this at all times.

With a few 100% mortgages coming on the market for firsttime buyers, what are the pros and cons of these products?

A number of 100% mortgages for firsttime buyers have come on the market in recent months. There are some vital considerations that you should consider when exploring them. Some 100% mortgages don’t require a deposit, and with the maximum loan-tovalue comes the likelihood of incurring significantly higher rates. Other 100% mortgages require a family member or

friend to back the mortgage by locking 5% or 10% of the property’s values into an account with the lender until a certain number of repayments are made or a set period has passed (usually 3 years minimum). Assuming the mortgage is paid on time every month, the deposited money will be accessible after this time. There are also lenders out there that can take a legal charge over a parental property to help children on to the property ladder, removing the need to put down any hard cash. When considering any of these options, you should get independent legal advice. These mortgages may help you buy faster as a result of not having to save for a deposit. Depending on the product, it may also provide an alternative from turning to the ‘Bank of Mum and Dad’. Despite these benefits, one crucial point is that with such a high loan-to-value ratio, you are more at risk of negative equity. So, if the value of the property falls, you could find yourself stuck on a high standard variable rate. Because these mortgage products are very few and far between, you would need to meet a strict set of parameters to be eligible for them. In many cases, obtaining a 5% deposit provides a much easier way to get a foot on the property ladder, but everyone’s circumstances are individual. For further help and advice from Which? Mortgage Advisers, please visit which.co.uk/ ftbmortgages or call 0808 159 4852

FINANCE

Credit Clinic Experian expert, Joe Green, answers your credit-related questions If you have a question for Joe, please get in touch by emailing us at lynda@firsttimebuyermag.co.uk and you may see your question answered in the next issue.

Debt management

More credit cards

Past bankruptcy

I am not in a position to buy my first home even though my girlfriend is very keen for us to start looking as soon as possible. I got into some debt a while ago and I have been struggling to keep up with payments, but I have kept this information from both my girlfriend and my parents. A friend suggested that I get a debt management plan to sort myself out, but I am not sure if this will help my credit rating and resolve my financial issues. What would you recommend? Oliver Dixon

I read that getting a credit card is good for your credit rating so I have just applied for one. I was accepted straight away and so I thought I might apply for another one and possibly a couple of store cards. I always stay within the limits of what I can afford so I don’t get into debt and I doubt I will ever use the cards. I am a FTB and I want to buy a home of my own, so I want to ensure I get a mortgage. Do you think I am doing the right thing? Sally Greaves

Over 10 years ago I unfortunately became bankrupt but that is all in the past. I have now got myself back on track and I have been saving hard for a deposit to put down on my first home. I am getting to the point when I will need a mortgage soon but I am worried that I will get turned down because of my past. Could you advise me please as I am getting really stressed about the situation? Matthew Bailey

If you’re struggling to keep up with your payments now, then the likelihood of being offered a mortgage soon may be minimal. Lenders like to see a positive track record of responsible credit management, so any missed payment or defaulted accounts could seriously damage your chances of securing the mortgage you want. Applying jointly with your girlfriend may not increase your chances of getting a mortgage, as lenders will want to assess you together meaning that poor credit management will affect both of you, rather than you as an individual. If you do decide to commit to a joint mortgage, then it’s best to be honest with your girlfriend now so she understands your situation before you commit to a joint application. Applying for credit together, whether it’s a mortgage or joint bank account, will link your credit reports through what’s known as a ‘financial association’, so your past issues could impact your girlfriend’s ability to get credit in the future too. So it’s advisable not to apply for credit together until you’ve got back on track and rebuilt a positive credit history. To put yourself in the best possible position to obtain a mortgage, you need to try and resolve your financial issues now and you can do this by contacting a number of free advice centres such as Citizens Advice Bureau to get free, confidential and impartial advice. They will help you get back on track towards a better financial future.

First Time Buyer August/September 2016

A well-managed credit account is likely to have a positive impact on your credit rating, especially if you’re keeping within the card’s terms and conditions and it has been open for at least six months. If you are planning to apply for your mortgage in the immediate future, then you should be aware that taking out any new credit products in the six months before you apply can have a negative impact. If you have taken out the cards recently, then it may be a good idea to wait for a bit longer before applying for your first mortgage. If you do take out a new credit product you will find that your credit rating may drop for a few months until you’ve proven that you are using the card sensibly i.e. not maxing it out and also you can afford to take on any new credit repayments. Some lenders also look at your ‘credit utilisation’ – which means how much you are using of the credit you have available. Using no more than 50% of your credit limit and certainly avoiding maxing out any single account is typically seen as a positive. If you’re not planning on using the cards, your credit utilisation should remain at 0%, so this will be seen as a positive for most lenders using credit scoring. A good place to start before you make any new credit applications is to understand your current credit rating, which you can see if you look at your own credit report and if you come to Experian, your Experian Credit Score.

It must be a great feeling having transformed your finances for the better, and being on track to putting a deposit down on your first home. As you know, a record of a bankruptcy is added to your credit report with each credit reference agency, meaning that lenders will be able to see this on your credit report. If discharged, a bankruptcy will stay on your credit report for six years from the date it was registered. A bankruptcy is likely to make it very difficult for you to access credit over this period. Many people think bankruptcy is the end of the road financially, but it’s not. With some patience, the right guidance and using credit responsibly, it is possible to rebuild your credit rating over time. Once a bankruptcy record has dropped off your credit report, lenders will no longer be able to see it and your chances of being accepted for credit, or a mortgage, should improve. However, you do need to be aware that future lenders may still ask if you’ve ever been declared bankrupt in the past – so unfortunately the impact could last longer than expected with certain lenders. I’d recommend getting a copy of your credit report to see if there is any room for improvement. You can also check out our guide, ‘The Road Back from Bankruptcy’, for more useful tips at experian.co.uk/ consumer/improve/guides/bankruptcy If you want help understanding how credit referencing works and how to improve your credit score, visit experian.co.uk/improve

FINANCE

No deposit required You no longer need to save up a 20% deposit to get a foot on the housing ladder – in fact, if you have sympathetic relatives, you can now buy a house with no deposit at all. But if things go wrong, warns Kay Hill, both you and your family could end up out of pocket Back in the pre-recession glory days, not only could you happily borrow four or five times your joint salaries, but lenders were casually dishing out 100% mortgages, and even, in the case of failed bank Northern Rock, 125% of the property value. It might seem like a buyers’ paradise, but for those with short memories, it didn’t end well… When the credit crunch began in 2007, such deals were the first to disappear, with the last no-deposit mortgage vanishing in 2008. Now, however, Barclays has become the first high street bank to dip its toes back into the market, alongside a handful of specialist lenders. The difference this time is that the lenders are not taking nearly as much risk – instead it is

being passed on to the borrower and family. What all the 100% (and most 95%) deals on the market have in common is that they ask for assistance from the Bank of Mum and Dad (which, according to Legal & General, is now a top 10 mortgage lender, set to be involved in a quarter of all property sales in the UK this year and lending more than £5 billion annually). In the case of the smaller players, Tipton & Coseley Building Society, Bath Building Society and Aldermore Bank, this help comes in the form of a second charge of 25-35% of the mortgage value over a family member’s home. This requires a valuation, sometimes a credit check, a restriction on their ability to move, and of

EXPERT COMMENT We have all seen how hard it has become for first time buyers to save for a deposit at a time when the cost of renting is increasing. I have never been a particular fan of 100% mortgages, but this is very different from pre-recession lending. Barclays has a robust affordability process and its stress testing is robust as well. It’s quite a clever idea – in effect Barclays still has the security of a 10% deposit, while the beauty of it for the parent is that rather than giving away their cash and never seeing it again, they are helping their kids get on the property ladder, getting a decent interest rate and their money back at the end. The more deposit you can put down the better, however. You can’t just assume that house prices will always go up, and negative equity is a danger with a smaller deposit. If you can get hold of a five or 10% deposit then there are better choices, but if you really haven’t got a deposit and your parents are happy to help then this is a good option. For those without parents who can help, it just widens the gap between the haves and the have-nots.

Andrew Montlake Director at Coreco Mortgage Brokers

First Time Buyer August/September 2016

FINANCE

H OW D O 1 0 0 % M O RT GAG E S A D D U P ?

The Barclays Family Springboard Mortgage is fixed for three years at 2.99% then reverts to a tracker of 2.49% above the Barclays Bank Base Rate (currently a 2.99% continuing rate). There is no mortgage set-up fee and the overall cost is 3% APR. According to RightMove the average first time buyer property now costs £194,224, which, according to the MoneyFacts mortgage calculator, would mean a first time buyer paying £920 a month, and a total of £276,326 over 25 years. The closest alternatives are Tipton & Coseley Building Society’s Family Assist (3.3% APR, £940 a month, £304,284 total), Vernon Building Society’s Family Assist Mortgage for those living near Stockport (4.5% APR, £962 a month, £325,269 total), and Bath Building Society’s Parent Assisted Mortgage Scheme (5.2% APR, £1,002 a month, £344,706 total). Interestingly, buyers with just a 5% deposit are limited to just the same handful of guarantor mortgages, while those with a 10% deposit will find themselves paying more if they want to go it alone (3.9% APR was the cheapest non-guarantor mortgage at the time of writing). Perhaps it’s time to take mum a bunch of flowers?

course the spectre that if their darling child turned out to be a black sheep then their own property would be at risk. The new Barclays Family Springboard Mortgage is more appealing from the parents’ point of view as rather than being secured on their home, it merely requires them to deposit 10% of the purchase price into a savings account, where it must remain untouched for three years. If no mortgage payments have been missed in that time they get the money back with interest, otherwise the money has to stay in place longer. The account tracks 1.5% above the Bank of England base rate, so currently pays 2.02% APR – a better rate than all but a handful of three-year bonds on the market. Of course, the parents must have sufficient savings. The thought of a 100% mortgage will certainly be appealing – no one likes to wait for what they want - but it’s worth considering the downsides: Lack of a savings habit – It sounds old-fashioned, but if you haven’t had the willpower to put any money aside for a deposit, are you really ready for the monthly commitment of a mortgage? There might be good reasons, like sky high rents or a period out of work, but ask yourself some tough questions. “Loans of this sort require prudence on the part of the borrower, ensuring that they have not over-extended themselves,” warns Jody Baker, Head of Money at comparethemarket.com. Risk of negative equity – The Halifax House Price Index at the time of writing was forecasting an annual rise of 9.2%; but uncertainty over Europe, a terrorist attack or even a severe weather incident could mean that prices fall and your property is no longer worth what you paid for it. The larger the deposit you put down, the more of a cushion you have. Negative equity is only a problem if you want to move, but what if

there’s an unexpected patter of tiny feet or a surprise job offer? “Some industry experts have slammed the mortgage – saying it will help people buy property they can’t afford,” says Robert Nichols, Managing Director of London estate agent Portico. “In a sense that’s true - borrowing the whole value of your property is a risk, although the risk is slightly softened in this case as it is really only a 90% LTV loan in disguise.” Family friction – these mortgages all require help from a family member over several years, so it goes without saying that you need to be on good terms with your family and willing to let them share the sensitive details of your finances. You also need to aware that if you default, your family will suffer.

EXPERT COMMENT While Barclays’ bold move to bring back 100% mortgages may help those with generous, financially secure parents; it isn’t the holy grail that many first time buyers are hoping for. Buyers will still need to find a helper able to stump up 10% of the house purchase price to lock away in a savings account for three years, so ultimately, this is a new mortgage brought to you by Barclays and the Bank of Mum and Dad which still doesn’t help the majority buy their first home. For those with parents or benefactors able to part with

So when might a 100% mortgage be a good idea? You can’t save – if every penny is eaten up in rent and paying a mortgage might actually be cheaper. House price rises – if prices are rising so much faster than your wage increases or ability to save a deposit that you might miss your chance.

this amount of money it could be worth considering, but it’s hardly a no-brainer like the Government’s new Help-to-Buy: ISA. It’s also worth remembering that if the mortgage payments aren’t met, the guarantor may lose the money held in the savings account. Really, Barclays’ new product is largely suited for families with moderate to large

“Barclays 100% mortgage looks like great news for the housing market,” says Robert Nichols, “as it will mean people who were previously unable to buy are now able to, particularly young first time buyers. For many aspiring homeowners a home is a place to live rather than an appreciating asset, and when you think about it like that, a 100% mortgage can only be a good thing.” Jody Baker from comparethemarket.com is more cautious: “While Barclays’ move adds a viable option for those looking to buy a home, we would expect these products to remain few and far between at the fringes of the mortgage lending universe by necessity - after all, it was riskier lending which caused the financial crisis in the first

savings who don’t want to wait for the benefit of a Help-to-Buy: ISA. However, considering the risk associated with 100% mortgages, and with the mortgage market being particularly competitive at the moment, be sure to weigh up all your options and get fee-free advice before taking the plunge.

Matt Sanders Head of Money at gocompare.com

First Time Buyer August/September 2016

MARKET

What Brexit means for ﬁrst time buyers? The political debate in the run up to Brexit left many voters overloaded with rhetoric but short on hard facts such as the implications for crucial issues like jobs and housing. Now the decision’s been made, fears are that Britain could be pushed into a deep recession as markets have plummeted with £trillions wiped off share prices. The dust may be starting to settle, just, but what does the UK’s departure from the European Union mean for the housing market and could it even be good news for first time buyers? CURRENT STATE OF THE MARKET The latest figures from Hometrack UK Cities House Price Index (issued in the week following the referendum result) revealed an all too familiar picture for anyone trying to secure their first home. We’re all accustomed to hearing of spiralling prices in the capital, but statistics showed that Bristol is also fast becoming unattainable and is now the first city outside of the south east to see house prices rise at a faster rate than London for more than six years (January 2010). Year-on-year house price inflation in Bristol reached 14.1% in May as it surpassed London (13.8%) and Cambridge (13.4%) to top the Index. Hometrack see this as part of a trend where large regional cities have registered the highest growth rates over the past three months, led by Liverpool (5.4%), Bristol (4.2%), Manchester (3.9%) and Leeds (3.7%). This was reportedly driven ‘by an improving economic outlook and strong demand from investors ahead of the stamp duty deadline on 1 April 2016’. London was one of eight cities to register slower year-

First Time Buyer August/September 2016

on-year growth, slowing from 14.2% in April to 13.8% in May. Hometrack expects to see what they describe as ‘a rapid deceleration in house price growth’ for the rest of 2016, particularly in London, as buyers adopt a ‘wait and see’ approach to assess the short term impact on financial markets and the economy at large in the wake of the EU vote.

EXPERT COMMENT The pressure for first time buyer

CONFIDENCE AND EMPLOYMENT

housing in London is relentless and

The full effects of the referendum are not expected to become fully clear for years resulting in continued worries over job prospects and future plans. In order to buy your own home you need to be confident of future employment, and that you can both secure and continue to be able to afford a mortgage. The current climate is a worrying one in which to make those crucial decisions, with the only surety being that nobody knows exactly what will happen. There are concerns that there may no longer be investment in the UK as jobs are lost from companies moving to EU countries. As the first time buyer market is

will make little difference. With very

in the short to medium term, Brexit competitive mortgage rates and Help to Buy available right now, buyers should be searching out the developers willing to help them on to the property ladder.

Lucian Smithers, Sales & Marketing Director at developer Pocket

MARKET

EXPERT COMMENT Brexit worries haven’t dented first time buyers’ appetite to own their own home. The result won’t change the fact that huge numbers of aspiring first timers want to buy a first home, and lots won’t want to wait out the two years until the renegotiations over the EU have been completed. In the short term, the wider market wobbles may benefit first timers, giving them the leverage to negotiate harder and get a good deal on purchase price. Canny first timers will use any Brexit-

just one part of the housing chain, if there is a slowing at the top end, then fewer homes could come on to the market as a result, which might keep prices high as demand exceeds supply.

SUPPLY OF HOMES & THE EFFECT OF SLOWING SHARE PRICES Experts may have been top of Michael Gove’s hate list; the ‘Leave’ campaign was built partially on the premise that British voters ‘have had enough of experts’ but property pundits warn that the housing market is especially vulnerable thanks to fear and uncertainty over what will happen now that the UK looks set to leave the European Union. One of the biggest hurdles facing first time buyers is the sheer lack of housing, leading to stiff competition and spiralling prices as a result. Investment from the Homes and Communities Agency helps to build around half of new homes in England each year but affordable housing starts have been on a steady decline for the last three years. At the time of writing, volume housebuilder Taylor Wimpey’s shares had almost halved since May 24th, when they hit 210.3p, the highest point since the house price bubble burst back in 2007/8. As well as plummeting shares there are concerns that leaving the EU will reduce labour supply to housebuilders who rely heavily on an influx of European construction workers to actually get homes built. The CEBR think tank estimates that, pre-Brexit, one in 20 construction workers came from other EU countries to fill the current skills shortage in the British building industry. There are fears that their right to work in the UK might be limited or even removed, depending on the terms of Britain’s exit from the EU, which is at least

two years away. And, even if their status doesn’t change, the current uncertainty might persuade European workers to leave and head somewhere more stable than the UK.

lull as a chance to snap up a good deal and get on the housing ladder.

Adrian Gill,

MOVE OR IMPROVE?

Director of estate

Home improvement marketplace Plentific. com surveyed 1,063 homeowners across the UK to gauge their feelings following the decision to exit Europe. The statistics showed that 10% of homeowners are now more likely to improve their home than sell in the current market. This ‘wait-and-see’ approach following Brexit may continue into the near future, as the survey also revealed that 12% of homeowners (around 1.7 million) are now less likely to sell in the next three years. Plentific’s survey showed that homeowners in London are also the least likely in the UK to move: 18% confirmed that they are less likely to sell in the next three years, which is 50% higher than the national average of 12%.

and Reeds Rains

agents Your Move

EXPERT COMMENT Many will be running to their nuclear bunkers now that the apparent end of the world is nigh. But before they do, they might want to take a breath and sit tight. We don’t anticipate any tangible difference where the UK property market is concerned and the supply and demand balance that is currently dangerously out of kilter will see little sign of stabilising

THE RENTED MARKET

itself. Going forward the UK market

Again, the future is uncertain but some experts believe that buy-to-let landlords and second homeowners might now decide to sell before a destabilised pound dents profit margins even further. Additional stock could lead to cooling prices, which could be good news for first time buyers. However there are concerns that the rent-to-buy market, homes built specifically for rent at more affordable prices, could suffer from the uncertainty, putting extra pressure on the diminishing resource. If these options are unavailable then first time buyers will face even greater hurdles as they face higher rent costs whilst struggling to save for a deposit.

perhaps with wobbly knees as it

will go from strength to strength, emerges from the clutches of the EU, but it will soon find its feet again. Homeownership will remain far out of reach for the average UK citizen and the overwhelming swell of demand for property will remain despite our choice to leave the EU.

Russell Quirk, CEO of eMoov.co.uk

First Time Buyer August/September 2016

EXPERTS

Agony agent Our readers put their property questions to our guest panel of experts: solicitors, mortgage advisers, property gurus and Help to Buy providers

THIS MONTH’S PA N E L O F E X P E R T S

Tony Harker Director of Sales and Marketing, East Thames

Jennifer McMahon Head of Private Client, Paul Crowley & Co. Solicitors

Simon Scott Head of Sales and Marketing, Origin Housing, and Chairman of the London Home Ownership Group (LHOG)

T E S T T H E PA N E L

We need your questions... If you have any queries, or difficulties in understanding the property buying process, our panel of experts is waiting to help. Send our team your questions on buying property, Help to Buy, legal issues, or your financial problems and we’ll find the best person from our panel to give the advice you need. Send your questions to: First Time Buyer 37 Ivor Place, London NW1

First Time Buyer August/September 2016

Co-habiting Couples

My partner and I are buying our first home together - we aren’t married and I have a young daughter from a previous relationship. I want to make sure that my share is protected for my daughter should anything happen to me or the relationship end. Will I be covered by common law marriage or is there another way to protect my investment? James Mitchell, Surbiton

Unfortunately not. The theory of the common law wife or husband is a common misconception and one that can lead to serious problems down the line if suitable precaution isn’t taken. To make sure that your share in the property is legally protected it is vital that both yours and your partner’s names appear on the title deeds. When registering the title deeds you have two options: joint tenants or tenants in common. It’s important to consider which of these options best suit your needs, as it

will determine how your ownership in the property is reflected. As joint tenants each partner would essentially own 100% of the property. The problem in this particular case would be that upon your death your share would pass automatically by law to your partner. This is known as survivorship and would happen regardless of your will instructions, meaning that you would be unable to bequeath your share to your daughter. A better option for your personal circumstances would be to register as tenants in common, where survivorship doesn’t apply, enabling you to leave your share to your daughter. Registering as tenants in common also gives the option for one partner to take a bigger share in the property, which can be helpful for many couples working on different incomes. Defining your respective shares and contribution to the purchase at the outset is vital here. This will avoid complications and legal wrangling should the relationship end. Of course, everyone’s circumstances are different. This is why it’s so important to seek legal advice and make sure that you choose the best option for your individual needs. Jennifer McMahon

EXPERTS

Re-mortgaging with shared ownership

I am taking a two year fixed rate mortgage on my shared ownership property. What will I need to do if at the end of the two years I find a mortgage lender with a better interest rate? Dionne Shaw, Hounslow If you have a fixed rate mortgage that is coming to an end, it’s always worth seeing if you can get a better interest rate from the same or a different lender. If you decide to change over to a different mortgage rate or lender, this is called re-mortgaging. You will need to advise your housing association that you are planning to remortgage your property as they have a vested interest in the property. They will need to check the mortgage offer to ensure it accurately reflects that you have a shared ownership property. When you re-mortgage, you will need to instruct a solicitor as they will need to update the Land Registry title to show your new lender. This is the same for any

re-mortgage where a lender is involved in financing your property. Your solicitor will provide the housing association or landlord with a Notice of Charge and the fee to deal with the administration of this work. Once approved the Land Registry title can be updated to register their interest. A re-mortgage is usually for a new mortgage but it can also involve changing

the people on the mortgage and property title and even to borrow additional funds for home improvements. If you wish to do this, you may require the approval of the housing association/landlord beforehand. Fees may vary and it is worthwhile checking with the housing association before starting a re-mortgage. Tony Harker

Shared ownership

I’m currently living with my parents in Kent, and working in London. I would like to move out of my family home and closer to work, but I’m hesitant to start renting in the capital. I’ve managed to save a little from living with my parents. Do you think that shared ownership would be the right option for me? Sally White, Bromley I think shared ownership would be the perfect option for you, Sally. Shared ownership schemes are great for first time buyers as they don’t require a large deposit. It’s likely that what you’ve saved from living at home will cover the deposit for a number of schemes across London. Buying through shared ownership allows you to bridge the gap between paying rent and paying a mortgage – you’ll start by buying an initial share of your new home and paying monthly mortgage payments on that share and rental payments on the rest. The total you pay each month often works out cheaper than renting – and even better, you’ll have your own brand new home to decorate as you wish without the hassle of a landlord or lettings agency. At Origin Housing, a housing association where I am Head of Sales and Marketing, we have a number of new shared ownership developments launching across London throughout 2016. You can keep up-to-date with new Origin homes as they become available at originsales.co.uk

Simon Scott

First Time Buyer August/September 2016

Buyers’ guide FTB EXPLAINS ALL THE OPTIONS TO HELP FIRST TIME BUYERS

Your options What are your funding options if you want to get on the housing ladder?

FIRST STEPS

ARE YOU ELIGIBLE FOR A GOVERNMENTBACKED SCHEME? The government runs several Help to Buy schemes to help people get on to the property ladder. To be eligible for Help to Buy your household income needs to be less than £60,000 a year. For more details, contact a Help to Buy Agent. Help to Buy Agents are housing associations that handle the application process for Help to Buy products. Details of Help to Buy Agents start on page 90.

BUYING ON THE OPEN MARKET

FUNDING OPTIONS

JARGON EXPLAINED

G O V E R N M E N TBACKED SCHEMES

EQUITY LOAN This is a loan for a certain percentage of a property’s value. If you remain in the property, you repay the equity loan within 25 years. If you sell the property, you repay the percentage of the property price the loan was for. For example, if the equity loan was originally £30,000 on a £100,000 property (30%) and you sell the property for £200,000, you’ll have to repay £60,000 (30% of £200,000).

HELP TO BUY The government will provide you with a 20% equity loan that is interest free for the first five years with interest charged at 1.75% in the sixth year and at annual RPI (retail price index) inflation plus 1% after that. The loan must be repaid when the property is sold or within 25 years. Buyers need to raise a deposit of 5% and a 75% loan-to-value (LTV) mortgage. Only new build homes valued up to £600,000 can be bought. The scheme is available for ftbs and movers.

HOMES AND COMMUNITIES AGENCY

NEWBUY Available on all newly built properties offered by homebuilders participating in the scheme up to the value of £500,000.Under the scheme, the house builder will put 3.5% of the sale price into an indemnity fund, and the government provides an additional 5.5%. The mortgage lender is then able to offer 90-95% LTV mortgages, and the purchaser only needs a 5-10% deposit.

NEW BUILD HOMEBUY, ALSO KNOWN AS SHARED OWNERSHIP OR PARTBUY, PART-RENT

Most people buy property on the open market. Homes are either offered for sale by estate agents or sold privately. These include flats, houses and former local authority properties.

This scheme gives buyers the chance to purchase as little as a 25% share in a property and pay the rest in the form of subsidised rent. In the majority of cases, there is the opportunity to own the rest of the property outright by a method known as ‘staircasing’.

PRIVATE INITIATIVES

RENT TO HOMEBUY

Some house builders offer first time buyer incentives on new build homes. These include cash back, a loan to help you with costs or paying your mortgage for a set period of time. To find out more, contact developers directly.

With this scheme you rent a newly built property for up to five years and pay a reduced rent. This gives you the chance to save for a cash deposit so you can apply to buy a share of the home later.

This is a government organisation that funds affordable homes including those under Help to Buy.

STAIRCASING This applies to New Build HomeBuy schemes and occurs when the resident tops up the number of shares they own in their part-owned, part-rented home until they own the maximum share or own the property outright. The shares can be bought in 10% increments.

FUNDING OPTIONS BUYING ON THE OPEN MARKET & P R I VA T E I N I T I A T I V E S

To buy on the open market or from a house builder you’ll need to get a mortgage from a bank or other mortgage lender. To do so you’ll need to save a deposit and meet the lender’s lending criteria.

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The ftb process TIPS

Buying your first property can be a daunting experience. It’s a big decision, so it’s important to get it right. We take you through all the steps involved

Unless you have enough money to buy a property outright you’ll need a mortgage. A mortgage is a loan used to buy a property and is normally repayable over 25 years. The loan is ‘secured’ on the property, which means the mortgage lender could repossess your home if you fail to make repayments on time. For this reason it’s vital only to buy a property you can realistically afford. Before you start, find out how much money you can borrow. A mortgage adviser at a bank will need details of your income, outgoings, savings and credit history – they will then be able to give you an ‘agreement in principle’, which will state, in theory, how much they will be able to lend you. An agreement in principle, however, doesn’t tie you, or the bank, to anything. Instead, it will just give you a rough idea of how much money you’ll be able to borrow. You’ll also need a deposit, normally at least 10% of the property price. The bigger the deposit, the better the mortgage rate you’ll be offered. Each mortgage product will have a maximum loan-to-value or LTV.

inance

APPLICATION You will need to have at least three months of bank statements, payslips or tax returns, a valid passport and information on any outstanding loans. Banks will look at your outgoings to assess how much you can afford to pay on your mortgage each month. The bigger deposit you have and the better your credit score, the better the mortgage rate you’ll be offered.

BUDGET Work out how much you can afford to repay each month. Look at your income and outgoings, including bills, council tax, food, insurance and travel. If you are buying a leasehold flat, you’ll also have to budget for service charges, so find out how much they will be.

MORTGAGE BROKERS VS BANKS CREDIT SCORE Get a credit report from Experian or Equifax, and make sure there are no default accounts, CCJs (county court judgements) or missed payments. If you are making lots of enquiries to find the best deal, make sure the lenders log your enquiry as a ‘quotation’ (soft) search rather than an ‘application’ (hard) search. Too many applications will leave ‘footprints’ on your credit score and can affect your rating. To improve your credit score, make sure you’re on the electoral roll, and pay your bills and any loan repayments on time.

You can apply for a mortgage via a mortgage broker (or financial adviser) or direct from a lender. A broker can look at the deals available and advise you which one would be best for your circumstances. Some mortgage products are only sold through brokers, not directly to customers. A broker will help you with the paperwork and deal with the lender on your behalf up until completion. You may have to pay them a fee or they may earn commission from the lender – find out how they are paid before committing to anything. Mortgage advisers in banks will only be able to sell you products offered by that particular bank, so it’s unlikely they will be able to offer you the very best deal for your circumstances. It’s important to shop around. You can compare mortgage deals yourself using websites such as SET A BUDGET

FINANCE

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Work out how much money you have for fees, deposit and the monthly mortgage you can afford.

CREDIT SCORE

Make sure your credit rating is sound, and pay off any debts you can.

moneysupermarket.com or moneynet.co.uk, then apply directly to your chosen lender.

FIXED-RATES Some mortgages are fixed-rates. This means you’ll pay the same rate of interest for a certain period of time, and your repayments won’t change. If interest rates go up, you’ll be protected from the increase, but you won’t benefit from any fall in interest rates. Normally at the end of the fixed period your mortgage rate will revert to the lender’s standard variable rate (SVR) for the rest of the term. You can either pay this rate or remortgage to another lender. Remortgaging to another lender will usually mean you have to pay a fee or early redemption charge (ERC).

VARIABLE-RATE MORTGAGES Variable-rate mortgages are either linked to the lender’s SVR or the Bank of England base rate, and the rate you pay can change. Lenders can change their SVR whenever they want, but they normally only change it when the Bank of England base rate changes. ‘Tracker’ mortgages have repayment rates directly linked to the base rate and are liable to fluctuate, so you need to be sure you could afford higher repayments if rates rise.

REPAYMENT OR INTEREST-ONLY You can either pay your mortgage on a repayment or interest-only basis. If you choose a repayment mortgage, your monthly payments will pay off some interest and some capital. At the end of the term, you’ll own your home outright. With an interest-only mortgage you’ll have smaller monthly payments, but these only pay the interest on the loan. At the end of the term you’ll still owe the original mortgage sum. If you take out an interestonly mortgage, you’ll need to have a plan in place (such as an investment) as to how you’ll pay off the capital.

SHOP AROUND

Speak to a mortgage broker, but also look at lenders’ direct products and search the internet for the best deal.

RESEARCH

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TIPS

RESEARCH AN AREA

a floor plan. Sign up with as many estate agents as you can (and your local HomeBuy Agent housing associations if you’re looking at shared ownership properties). They should send you new properties that match your description, but it’s worth phoning agents regularly.

Buying a home is a big investment. You need to buy a home you can afford and one

horough research

Check online for prices of sold properties in the area, and make sure properties you like fit your budget. You can search for recent sold prices of property in any area at nethouseprices.com, although be aware that prices have dropped significantly in the past year.

you’ll be happy living in.

LOCATION IS KEY The first step is to shortlist the locations you feel you’d like to live in, then check if you can afford the house prices in those areas. It’s also worthwhile visiting places you like: it may be that there’s an up-and-coming hot spot just down the road you didn’t know about that’s much more affordable. Ideally, you will have rented in the area before buying, but if this isn’t the case, at least spend some time there, check out the commuting time to work, and visit local pubs, shops and leisure facilities. Visit the area at night, too.

If you like a property, aerial shots of the area can be viewed at earth.google.com

VIEWING Once you see a property you like, arrange a viewing. Most people see at least 10 properties before putting in an offer. It’s worth bringing a friend or relative and also arranging a second viewing to check out any bits you may have missed. Don’t get taken in by the furnishings and décor too much. Remember that a property that is slightly run down can still be a great investment and may only need a touch of paint and a change of furniture.

Before you put in an offer, visit the street at different times to make sure it’s safe. Ask neighbours and local shop owners about the area.

BEFORE YOU BUY When looking at buying apartments, check exactly what is included in the service charge and how much it is. Also, ask about the terms of the lease and its length. If the lease has less than 80 years left, use this as a negotiating tool and make an offer below the asking price.

ESTATE AGENTS PROPERTY SEARCH Once you have found the right location, go online and check out what’s on offer. Most properties are listed on property portals such as findaproperty.com or propertyfinder.com or estate agents’ own websites. Most of the properties featured have pictures and descriptions and some have DECIDE ON A LOCATION

Be practical. Think about the commuting time and if you can afford to buy in the area.

RESEARCH THE AREA

Check out crime rates, future regeneration or new transport links.

It’s a buyers’ market, so make use of agents’ legwork in finding properties that fit your requirements. Be aware that estate agents are paid commission by the seller on the sale, so try to inspect the property yourself rather than just the parts the agent shows you. Don’t get sucked in by the hard sell. SEARCH

VIEWINGS

Look at several properties, and visit ones you like more than once and with someone else.

OFFER

When making an offer, don’t be afraid to ask for less than the asking price. If the property needs work done on it, use this as a negotiating tool.

SURVEY

BUYING

Make sure you get a survey done – it could save you money in the long run.

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BUYERS’ COSTS

uying process

SURVEYS AND VALUATIONS

Once your offer is accepted, tell your mortgage lender. They will do a valuation to ensure the property is worth the money being advanced. At the same time, instruct a surveyor to carry out a survey. If this shows problems, find out how much they would cost to rectify and use this information to renegotiate the sale price. Or, tell the seller certain repairs need to be carried out before contracts are exchanged.

SOLICITOR’S/CONVEYANCING COSTS £500-£1,500

MORTGAGE FEE £0-£1,000

VALUATION £0-£300 (depending on your mortgage deal)

SURVEY £300-£500 (depending on the type of survey you have done)

SOLICITORS After the offer is accepted, you will also need to appoint a solicitor or conveyancer who will oversee the contract, deal with the finances and exchange the deeds. Your solicitor will carry out searches, check the terms of any lease and tell you how much stamp duty you have to pay. The seller will also appoint a solicitor, and the two legal teams will be in regular contact to make sure the purchase goes as smoothly as possible.

TIPS

A QUICK SALE Push the seller to take the property off the market. This will limit the chances of being gazumped (another buyer making a larger offer). The seller can insist on continuing to show the property, especially if you haven’t offered the asking price.

EXCHANGE AND COMPLETION Once the mortgage offer is in place, the contract is satisfactory and buildings insurance has been organised, both parties will agree an exchange date. On exchange of contracts, you pay a deposit, and a completion date is set. At this point, there’s no going back – the seller could sue you if you pull out, and you could lose your deposit. The exchange can be on the same date as the completion, but they are usually a week to 10 days apart. On completion, the final paperwork is done, and the property is legally yours.

Use a recommended solicitor who you know to be reliable and can move fast. Never get pressured into an exchange and completion date without knowing all your finances and documents are in place. If you can’t complete, you may have to pay the seller’s costs. English property law is different to Scottish law: in England, if you put in an offer and then have a change of heart, you can legally back out of the deal or negotiate up until the exchange date. But, in Scotland, an agreed price is binding.

SOLICITORS

Compare quotes from solicitors, and ask your friends if they can recommend someone. A good solicitor can make a big difference to a purchase completing or falling through.

LOCAL AUTHORITY SEARCH FEES £300 (included in your solicitor’s bill)

LAND REGISTRY FEES £50-£920 (depending on the property’s value, e.g., £200 on a property costing between £100,000 and £200,000).

MORTGAGE BROKER’S FEE 0-1%

STAMP DUTY 0% for properties costing up to £125,000

2% for properties costing between £125,001 and £250,000

5% for properties costing between £250,001 and £925,000

10% for properties costing between £925,001 and £1,500,000

BUILDINGS INSURANCE £300 per year, payable monthly or in advance. Buildings insurance can cost a lot more if your property is at risk of flooding.

TIME SCALE From offer to completion usually takes about six weeks to three months, but don’t feel pressured or rush into anything you’re not sure of just because the seller or estate agent wants you to exchange.

SEARCHES

Look at the results of searches your solicitor has done. They will tell you, for example, if a main road is about to be built at the end of your garden.

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INSURANCE

After you’ve exchanged contracts, arrange buildings insurance – this will be a condition of your mortgage offer.

REMOVALS

Shop around for a removals firm, and find one that can move your possessions on completion day.

SERVICE CHARGES AND GROUND RENT ON LEASEHOLD FLATS £100-£4,000

COMPLETION

Your solicitor or estate agent will call you to tell you the property is yours. The solicitor will have some final paperwork to do, and you will then have to pay the solicitor’s bill and your stamp duty payment (if applicable).

BUYERS’ GUIDE

Home buying glossary Confused by financial acronyms and industry terminology? Buying your first house is daunting enough without having to decode property lingo. FTB’s home buying glossary is here to make the process a whole lot easier to understand AGREEMENT IN PRINCIPLE

DISBURSEMENTS

The initial document your lender will give you outlining the amount you are likely to be lent. An agreement in principle is not a guarantee of getting a mortgage.

These are additional charges incurred during the home buying process such as stamp duty and Land Registry charges. You must give the money to your conveyancer or solicitor who will then pay the charges on your behalf.

APR APR stands for annual percentage rate. It is the interest rate you’d pay over a year. It takes into account not just the interest on your loan but also any other additional charges.

EARLY REPAYMENT CHARGE

ARREARS

EQUITY

This is a term used to describe payments that haven’t been made on time.

The difference between the value of the property and the value of the mortgage you have secured.

This is an amount of money you have to pay a lender if you decide to move mortgage providers or if you pay off your mortgage quicker than expected.

BASE RATE The interest rate set by the Bank of England. Lenders use the Bank of England base rate to set their own charges.

EXCHANGE OF CONTRACTS This is when you exchange contracts with the seller. When this has happened, both sides are legally bound to complete the transaction.

BROKER A broker is someone who gives you advice on your mortgage. Some are independent, while others work for lenders.

FREEHOLD A freehold is when you fully own a property and the land it stands on.

A survey carried out by a qualified surveyor to spot any structural problems or faults in the home you are buying.

When a seller accepts an offer and then later on rejects it in favour of a higher offer from another bidder.

GUARANTOR COLLATERAL Something of value that is offered as a guarantee against a loan. With mortgages, your home is collateral.

COMPLETION The finalisation of the sale. Completion day is when all money is transferred and you become the legal owner of your new home.

CONVEYANCING The legal process of transferring ownership of a property.

This is a fee you have to pay in order to register your ownership of the property with the Land Registry.

LEASE A type of contract where you buy the right to occupy the property for a fixed period of time. You usually have to pay annual ground rent each year.

LTV This stands for loan to value – the ratio between the amount of money you have taken out as a loan and the valuation price of the property.

LUMP-SUM REDUCTION In order to reduce your mortgage, you can make a lump-sum reduction. This is where you pay more than you owe each month in mortgage repayments.

REDEMPTION GAZUMPING

BUILDING SURVEY

LAND REGISTRY FEES

A person, usually a parent, who guarantees that you can pay your mortgage repayments. You often need a guarantor if you are struggling to get a mortgage based on your own income. If for some reason you cannot pay your mortgage, your guarantor has to pay it for you.

Paying off your mortgage in full is known as redemption.

REPAYMENTS The amount you have to pay back each month to your mortgage provider

STAMP DUTY Stamp duty is a shortened name for stamp duty land tax. This is an amount of money that the government tax you when you purchase a new property. Your solicitor or conveyancer will organise the payment for you.

HIGHER LENDING CHARGE If you take out a large mortgage on a property, some lenders charge you an extra fee. This is because the more money you borrow the more of a risk the lender is taking.

TITLE DEEDS The legal documents that outline your rights and liabilities in relation to your new property. The title deeds also act as proof of ownership.

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10 legal terms ﬁrst time buyers should know Get clued up on the key legal terms you need to understand thanks to Adele Barker, Director of Conveyancing at Beaumont Legal, who’ve won First Time Buyer’s Best Law Firm for Conveyancing award for the past four years. These are the basics and you can find out more at beaumont-legal.co.uk

C onveyancing The legal process of transferring ownership of a property. With life-changing sums of money involved, there is a set legal process that must be followed so the buyer, seller and mortgage lender are all protected from a range of issues that could affect them. Each buyer and seller needs to choose a solicitor or licenced conveyancer to do this for them.

G ifted Deposit This is where some of the funds to buy a property come from someone other than the person buying a property. Most commonly this is money from a relative.

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Leaseho ld & Freeho ld These are the two basic types of property you can buy. With a freehold you buy the property and the land it’s built on. With leasehold you buy a share of what’s built on someone else’s land. Very simply, flats are almost always leasehold and houses are almost always freehold.

Disbursements and fees Disbursements are the costs, which a solicitor pays on your behalf - such as Stamp Duty - whereas legal fees are the costs you pay for your solicitor’s time.

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Sur veys & Searches

Vendor The person or people selling a home. Estate agents and conveyancers often use the word ‘vendor’ instead of ‘seller’, which avoids confusion when talking about properties that have a cellar as well as a seller.

Surveying looks at the buildings you’re buying whereas searches look at the land it’s built on. A surveyor will tell you the state of the building and any problems with it, while searches will tell you about whether there are any issues with the land that could affect you in future.

on m om C in s nt a n e /T y c n a n e T Joint If you’re buying with someone else there are two main ways to own a home – Joint Tenancy or Tenants in Common. You need to understand which is best for you and your circumstances – whether you’re buying with a partner, family member or friends.

Stamp Dut y Land Tax

Exchange (of c ontracts) The point where all details have been agreed, it’s confirmed the property will transfer to the new owner, neither party can pull out and you confirm when you can move in.

While most people refer to it as simply Stamp Duty or SDLT, Stamp Duty Land Tax is the tax you have to pay to the Government to purchase a home.

C omplet ion The point at which the final money is transferred, legal ownership of the property is handed to the new owner and you can collect your keys and move in!

Beaumont Legal has won First Time Buyer’s Best Law Firm for Conveyancing Award in 2013, 2014, 2015 & 2016. They let you buy your first home without hanging around for the paperwork – you send and receive documents online, securely and instantly, to really speed up the whole legal process. You can start your conveyancing anywhere, anytime, with any device, by visiting beaumont-legal.co.uk or calling 0345 122 8080

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