London Home Show Countdown: JLL
Did you know owning your own property might be easier than you think?
Welcome to JLL’s Help to Buy guide that will demonstrate how you can get onto the property ladder, whether you are buying alone or have a dual income.
The Help to Buy scheme is an Equity Loan Assistance Program provided by the government (Homes England) that is designed to assist first time buyers get onto the property ladder. It only applies to registered new build homes in England and is available to all first time buyers who have a minimum deposit of 5% of the property value. You can also combine your income with a spouse, partner or friend to increase your affordability.
The government will lend a maximum of 40% (up to £240,000) in London and up to 20% (up to £120,000) outside of London. It is important to note that regional property price caps are in place across the country and will differ. In London, for example, the maximum value of a property on the Help to Buy scheme is £600,000.
We have put together three scenarios of how you can use Help to Buy to purchase your first home either on your own or with a spouse, partner or friend*:
Scenario 1: Sally is a single bookkeeper earning £55,000pa.
With a cash deposit of £22,500 saved, Sally would be able to purchase a property in London valued at £450,000. Here’s how:
- 40% Help to Buy equity loan amount: £180,000.
- After the deposit and Help to Buy portion, balance she will need to mortgage: £247,500.
- Given her annual earnings, Sally will be able to borrow between £192,500 and £247,500.
These are some of the developments with apartments that Sally would qualify for buying:
- Clapham House, Clapham: One bedroom apartments from £335,000.
- Jigsaw, Ealing: One bedroom apartments from £430,000.
- Evergreen, Haringey: One bedroom apartments from £440,000.
Scenario 2: Denise and Matthew are a recently married couple. Denise owns her own yoga studio, and earns £30,000pa, Matthew is a sales manager and earns £35,000pa.
With a cash deposit of £25,000, the newlyweds would be able to purchase a property in London valued at £500,000. Here’s how:
- 40% Help to Buy equity loan amount: £200,000.
- After the deposit and Help to Buy portion, balance for a joint mortgage: £275,500.
- Given combined annual earnings, Denise and Matthew will be able to borrow between £227,000 and £292,500.
They have an excellent choice of new homes available with JLL Help to Buy:
- Dock East, Canary Wharf: One bedroom apartments from £379,000.
- Verdo, Chiswick: One bedroom apartments from £423,000.
- Stratford Mill, Stratford: One bedroom apartments from £425,000.
- Bluenote, Hayes: Two bedroom apartments from £410,000.
- Heart of Hale, Tottenham Hale: One bedroom apartments from £425,000.
Scenario 3: Sasha and Violet are a couple in their 30s looking to buy an apartment after renting in Central London for the past five years. Sasha is a junior solicitor earning £50,000pa and Violet is a personal trainer earning £40,000pa.
Over the years, they’ve saved a deposit of £30,000 which enables them to look at properties on the maximum end of the London Help to Buy scheme of £600,000. Here’s how:
- 40% Help to Buy equity loan amount: £240,000.
- After the deposit and Help to Buy portion, balance for a joint mortgage: £330,000.
- Together, Sasha and Violet will be able to borrow between £315,000 and £405,500.
JLL Help to Buy schemes available to them around the £600,000 mark include:
- Samuel Square, West Kensington: One bedroom apartments from £515,000.
- Jigsaw, Ealing: Two bedroom apartments from £580,000.
- The Makers, Shoreditch: Studio apartments from £595,000.
- Lock No19, Hackney Wick: Two bedroom apartments from £590,000.
- Evergreen, Haringey: Two bedroom apartments from £570,000.
There are many more scenarios where owning your own home is possible with a joint income and deposit savings. JLL has an extensive collection of developments available on Help to Buy. If you are looking to buy your first home, speak to us and we will help you through the process, from location and property type to affordability and minimum requirements.
*Examples are indicative only and do not reflect real-life scenarios. Eligibility and affordability will differ depending on personal circumstances. Always consult a mortgage advisor.
The capital’s no.1 first time buyer event is returning to the QEII Centre in Westminster on Saturday 18th September! Register for your FREE ticket to the London Home Show to find out more about Shared Ownership, Help to Buy and the buying process.