Questions and Answers

Q Can I buy a home off plan?

Yes, you are able to reserve a new home off plan up to 9 months before completion. However, you cannot exchange contracts before 6 months to completion of the sale. You also need to ensure that your mortgage offer is valid through to completion.

Q Will I have to pay Stamp Duty?

The Government's standard rules and procedures for Stamp Duty Land Tax (SDLT) apply to all FirstBuy purchases. SDLT is payable at the time of purchase, on the full purchase price of the home. That is, the amount paid by you (the first mortgage and any cash contribution) plus the value of the FirstBuy assistance. There is no further SDLT to pay on any 'staircasing' repayments or repayment when the home is sold. You should budget for SDLT on the full open market price of the property when you purchase a FirstBuy home.

Q Who pays for repairs and ongoing maintenance to my home?

It is your responsibility to repair and maintain your home. New homes often come with a guarantee that will cover certain defects for up to 10 years after it was built. This guarantee usually only covers defects in the house builder's workmanship.

Q Who provides the contribution for FirstBuy?

There are two contributions: one from the house builder and one from the Agency. The contributions are made equally and secured by the equally ranking second
charges on your property title registered at Land Registry.

Q If I am not eligible for help under this scheme, are there any other schemes available that may help me?

Other schemes offered through the Agency may be applicable to your personal situation and needs. Details on the full HomeBuy suite of products can be obtained from your Local HomeBuy Agent.

Q How long will it take before I can move in?

Because FirstBuy homes are generally on new developments (and may still be under construction), in common with most new home sales, you will normally be expected to arrange a mortgage and exchange contracts within one month of paying your reservation fee. Your moving in date may depend on the time required to complete construction work, which will vary from scheme to scheme. Some FirstBuy applicants may need to wait for a longer period of time for a home that matches very specific needs whereas others may buy from a development that allows earlier occupation.

Q What happens if the completion of my home is delayed?

Once you have committed to buy a home (at exchange of contracts) the house builder will have agreed to build the home and keep you informed of progress. If you are unhappy about any delays in construction you must speak to the house builder. Your solicitor/conveyancer will be able to advise on the house builder's contractual responsibilities before you agree to the sale. Funding for FirstBuy sites is time limited. You should check with your house builder that the funding will be available on the date you expect to complete your purchase.

Q Are there any restrictions on the properties that I can purchase?

All FirstBuy homes are on new build developments where the Agency has an agreement with the house builder. You can only purchase from these house builders. To ensure that growing families can access homes suitable for their needs, the purchase of a property with one bedroom more than your household's current  need is permitted. This is assessed by your Local HomeBuy Agent as part of the eligibility approval process.

Q What happens if the rules change after I purchase and I am no longer eligible? Do I have to pay all the money back?

No – eligibility status will be judged against the criteria at the time you are given financial help to buy your home. So if the scheme rules change you will not be affected.

Q Can I sublet my FirstBuy home?

No – FirstBuy is designed to assist you to get on the housing ladder. If you wish to sublet, you will first have to repay the FirstBuy equity loan  assistance. In exceptional circumstances (e.g. a serving member of the Armed Forces staff whose tour of duty requires them to serve away from the area in  which they live for a fixed period, then sub-letting can be considered, in these circumstances you would also require approval from your mortgage lender).

Q Can I own a FirstBuy home and buy a second home?

No – FirstBuy is designed to assist you to get on the housing ladder. If you wish to purchase another home you will have to repay the FirstBuy equity loan.

Q Can I use cash from my council, Housing Association or other public sector body to buy with the addition of help through FirstBuy?

Provided that your local council is satisfied that this represents value-for-money and the other funding is compatible with FirstBuy. Funding provided which must be secured against your home would not be compatible with the FirstBuy scheme.

Q After purchasing my home, can I increase my mortgage or take out another loan?

Not without permission from the Post Sales HomeBuy Agent. Further advances must be approved by the Post Sales HomeBuy Agent. Advances to be used for staircasing or repaying the equity loans will usually be welcomed and approved. Advances for other purposes will be considered by the Post Sales HomeBuy Agent on a case by case basis (see question below regarding extending or altering the property). You can transfer your mortgage to another qualifying lending institution (see page 12), following prior permission from the Post Sales HomeBuy Agent. However, you must ensure your new lender is informed that your home is a FirstBuy property with a second charge entitling both the Agency and the house builder to a share of the future sale proceeds. The Post Sales HomeBuy agent may decline permission for further advances or transfer to another lender if after assessment they consider you may be putting yourself in an unsustainable financial position.

Q Can I extend or alter the property?

Not without permission. Because FirstBuy is designed to help aspiring buyers into home ownership, you should consider repaying part or all of the Agency's
contribution before making plans for improvements or alterations. This is because the Agency is seeking to help future aspiring buyers and may use the proceeds of these repayments to make more low cost homes available. Therefore, consent will not usually be granted for significant home improvements. However, the Post Sales HomeBuy Agent will review cases of hardship if, for example, property modifications are required for a disability.
When your property is sold in the future, if improvements have been made with the approval of the Post Sales HomeBuy Agent, these will be ignored when your property is valued to work out how much should be repaid to the Agency.

Q After five years of ownership how is the fee collected?

The Post Sales HomeBuy Agent will collect your fee monthly by direct debit or standing order. They will contact you at least a month before your fees are due, to set up your repayment arrangement. You will also receive a statement each year confirming when your fees are payable. The annual statement will also show any payments you have made once you start paying the fee. Fees can be paid in a single yearly payment or in monthly instalments.

Q What if I die after purchasing a FirstBuy home?

This depends on whether you bought your home alone or with others. If you bought the house/flat on your own and you die, the home will be passed on in the normal way under the terms of your will and the payments explained in this guide will be made by your estate in accordance with the scheme. If you have not made a will it will pass under the laws of intestacy. It is recommended that a sole buyer seeks independent legal advice about this. If you bought your home with others and one of them dies, their interest in the property will either be transferred to the surviving co owner (s) or will pass under the terms of their will, or (if there is no will) the laws of intestacy. It is recommended where there are two or more owners, that they seek independent legal advice about this.

Q Can owner names be added or changed on the FirstBuy property?

Only with permission from the Post Sales HomeBuy Agent and you will be required to cover their administration costs. This will require a deed of accession and/or a deed of release to be completed by you. This is a legal document that permits name changes on the property.

Q Can I get help with benefits to pay the FirstBuy fees if, for example, I lose my job?

Because FirstBuy fees are not classified as rent, they do not qualify for Housing Benefit. You should make sure you have made arrangements to ensure you can
continue to make you FirstBuy payments if your income falls. You should seek independent financial advice about this before purchasing a FirstBuy home.

Q What happens if my partner or a friend moves into my property to live?

Any person aged eighteen years old or above must sign a form of consent that they have no interest in the property and have sought independent legal advice in relation to their rights. This will be required before the Local HomeBuy Agent consents to the exchange of contracts.

Q What happens if my partner moves out and no longer wants to be party to the equity loan agreement?

The Post Sales HomeBuy Agent will be able to arrange for a 'Deed of Release' which will release your partner from the obligation of having to repay the equity loan, but first this will need to be approved by the Agency and the house builder to whom the equity loan is owed. Assuming that your first charge mortgage lender is content for this to take place and that you are able to provide evidence that you can meet your housing costs and still have a reasonable standard of living, permission should be a formality.