| In the current climate, it may appear that the market is | | | | property. |
| nigh on impossible for first time buyers to work around, | | | | This scheme is very encouraging for first time buyers |
| but the truth of the matter is, it is still very possible for | | | | and offers a new way into the market where |
| first time buyers to purchase property – through the | | | | previously it may not have been available, due to the |
| help of the Government supported Low-Cost initiative | | | | tough financial climate which is making it difficult for |
| for First-time buyers scheme. (LIFT) | | | | people to save up for a deposit. |
| The government understands the difficult situation first | | | | LIFT – Eligibility |
| time buyers face in today’s market, and as such | | | | The First Time Buyers LIFT scheme is aimed at those |
| have created the LIFT scheme for first time buyers, to | | | | with low incomes, the social landlords involved in the |
| increase chances for first time buyers to afford a | | | | transaction will carry out a means test in order to see |
| property suitable for their needs. | | | | whether or not the applicant qualifies for the scheme. |
| LIFT has a number of initiatives to aid First Time | | | | If an applicant does qualify for the aid, they are entitled |
| Buyers, one of which is the New Shared Supply Equity | | | | to purchase a home with double the bed space of the |
| Scheme. The New Supply Shared Equity scheme | | | | number of applicants purchasing the home. For |
| aims to help people on low incomes who wish to own | | | | example a couple would be eligible for a home with |
| their own home but who cannot afford to pay the full | | | | two double bedrooms, or a double bedroom and two |
| price for a house. | | | | single bedrooms. |
| LIFT is a scheme based on a Shared Equity proposal | | | | In terms of mortgage, the purchaser must contribute |
| in which two parties have a stake in the property, the | | | | the maximum mortgage they can reasonably obtain, |
| first time buyer, and the government. The buyer will put | | | | with the government making up the excess, it really |
| in as much as they can afford, usually between | | | | couldn’t be simpler. If a house is purchased for |
| 60-80% and the government will make up the excess | | | | £100,000 and the purchaser can afford a £70,000 |
| means that the government will keep a financial stake | | | | mortgage they will then own a 70% stake in the home. |
| in the property whilst the buyer will pay for the majority | | | | The share can also be increased unless there is an |
| share in the property. The scheme allows first time | | | | agreement between parties that the government is to |
| buyers a way into a property which they could | | | | retain its share. This scheme is a great way for first |
| previously not afford, and with no added risk. The only | | | | time buyers to get their foot in the door and provides |
| difference from the buyer paying for the property in | | | | no added risk whatsoever and when you buy through |
| full themselves is that on sale of the property the | | | | the New Supply Shared Equity scheme you own the |
| government will receive their percentage of the sale | | | | property outright – you will have FULL title to the |
| dependant on the size of stake they hold in the | | | | property. |