If you're a first time buyer, you might be able buy a home for between 30 and 50 percent less than its market value. This offer is called the first homes scheme and is only available in England. The home can be:
- a new home built by a developer
- a home you buy from someone else who originally bought it as part of the scheme.
First homes eligibility
To be eligible for the first homes scheme, you must:
- be registered with the Affordable Housing Scheme
- be aged 18 or over
- be a first time buyer
- have a household income of £80,000 or less
- applicants who can afford to purchase without a mortgage will not be eligible. All purchasers of first homes must use a mortgage or home purchase plan (if required to comply with Islamic law) for at least 50 percent of the discounted purchase price
- use a mortgage or home purchase plan for at least 50 percent of the discounted purchase value
- use the first home as your main residence
- not own any other residential properties
- have no current or previous rent arrears or history of anti-social behaviour with the council
- have lived in the Bury borough for the last 6 months or more before applying
- for joint applicants, only the main applicant must meet this criteria
- for members of the armed forces, the divorced or separated spouse or civil partner of a member of the armed forces, the spouse or civil partner of a deceased member of the armed forces (if their death was caused wholly or partly by their service) or veterans within five years of leaving the armed forces are exempt from this particular criteria.
If you are applying as joint applicants, you must both be first time buyers. This means that you have not previously acquired via purchase, gift, trust or inheritance a major interest in a dwelling or an equivalent interest in residential land situated anywhere in the world and/or benefited from any form of sharia mortgage finance. The full 'first time buyer' definition is set out in paragraph 6 of schedule 6ZA of the Finance Act 2003 for the purposes of Stamp Duty Relief.
First homes availability
You can apply for new homes in your area that are advertised by developers as part of the first homes scheme, these can be found on our available properties page.
Every home sold is valued by an independent surveyor to make sure the discount is based on actual market value. These homes cannot cost more than £250,000 after the discount has been applied.
First home owners may only sell the home to someone who is eligible to buy from the first home scheme and you must give them the same percentage discount that you had, based on the market value at the time of sale.
When your first homes application is approved, you'll need to:
- hire a conveyancer
- apply for your mortgage
- make sure your conveyancer follows any council instructions
- complete any legal documents the council sends you.
After you've got a mortgage offer and agreed a contract with the developer, your conveyancer will ask the council if you can exchange contracts. The council will check the conveyancer's request to make sure it's legal and tell you when they've decided.
Your mortgage lender may take action against you if you fail to make mortgage payments.