If you can’t afford to buy your first home there are two Government Schemes which can help.
Firstly, an Equity Loan, where the Government assist with a loan towards the purchase price and no fees are payable for 5 years.
Secondly, there is Shared Ownership whereby you buy a share in the property, usually 25%, 50% or 75% of the full market value. The Housing Association retains the remaining share and you pay rent on that share. Shared ownership properties are always leasehold and you have an option to “staircase” at various stages.
This involves paying a further premium to your Landlord to acquire up to 100% of the leasehold interest. If the property that you are leasing is a house, once you have acquired 100% of the leasehold interest in the property, you often have the facility to purchase the freehold.
The residential property team at Baches Solicitors LLP have experience in dealing with shared ownership Leases and are able to advise you regarding the different options regarding Stamp Duty Land Tax and the implications for you.