January 19th, 2018
When you separate or divorce, housing is often a real issue. How can you afford to re home? Sometimes there are enough funds to enable this to happen, but often the money available is a little short. So in this series of blogs, I am looking at the options available. In my last blog, we looked at the help to buy ISA. Another scheme is the Help to buy scheme.
Again, I reiterate, we are not financial advisers and this blog only seeks to highlight options for you to consider with your independent financial adviser.
The government call this scheme the help to buy equity loan assistance scheme from the Homes and Communities Agency (HCA).
The help to buy scheme is not a scheme just for first time buyers - it is available to all home buyers who wish to buy a new home, but may for example be struggling to find a deposit. They must, however, be able to sustain a mortgage.
So the key facts:
Up to a maximum of 20% in England and up to 40% in London of the purchase price is available to the buyer through an equity loan funded by the government through the HCA.
The offer is only available from house builders registered to offer the scheme. The scheme started in 2013 and currently is extended to 2021, unless all the funding is taken up.
The maximum you can borrow is £120,000 in England (£240,000 in London). There is no minimum amount.
You must provide a deposit minimum of 5% of the full purchase price of the property.
After 5 years you will be required to pay an interest fee of 1.75% of the amount of your help to buy shared equity loan, rising each year after that by the increase if any, in the Retail Prices Index plus 1%. The loan itself is repayable after 25 years or the earlier sale of the property. Additionally, you must pay £1 per month from the start of the loan until it is repaid.
The total amount repayable by you will be the proportion of the market value of your home that was funded by this loan, plus interest and charges. The amount you ultimately repay will depend on the market value of your home when you repay the Help to Buy loan.
For more information, have a look at the government website at:
Please also make sure you take independent financial advice before making any financial decisions.
Jo qualified as a solicitor in 1992 having completed her training at leading Cambridge firms Taylor Vinters and Thompson and Co. After qualification, Jo moved to J Garrard and Allen in Olney where she established the family department. In 1994 Jo was made a Partner at J Garrard and Allen and continued to build and develop the practice. Jo trained as a mediator with Resolution in 1996.
In 2001 Jo decided to set up independently and created a purely family law practice in Stony Stratford recognising that in fact the skills required by family lawyers and the expectations of clients experiencing relationship breakdown and separation were different from those required in other areas of the law.
Hawkins Family Law fields 'a very professional team that delivers a high-class service and has strength-in-depth from senior to junior level'. Managing director and team head Jo Hawkins provides 'clear and accurate advice and moral support through often testing times for her clients; she focuses on deriving the best long-term outcome for her client and other parties'. The practice has particular strength financial matters, including divorce and ToLATA proceedings. Other key figures include Loraine Davenport, who has strong collaborative law expertise and handles complex children cases and high-net-worth ancillary relief matters; Annabel Hayward, who focuses on complex financial provision and co-habitation matters; and Stacey St Clair.
For more information please click here.
What the team is known for
Boutique family law firm that punches above its weight in terms of high-value and complex matrimonial finance instructions relating to business assets, pensions and substantial property portfolios, including assisting with the handling of assets abroad. Also represents clients in the negotiation of wealth protection agreements and private law childcare arrangements. Fields a team trained in collaborative law and alternative dispute resolution.
An impressed client says: "The team's personal service and individual care is a great asset,"adding that the lawyers are "always available to assist and understand the occasional need for immediate advice and guidance, providing a very reassuring service."
For more information please click here.