E14 is growing from strength to strength. This brings trade and employment opportunities to any area. Employees who also need places to live. Preferably not too far from where they work. But living and working in some of London’s most exclusive developments or even on the fringe of them is just a pipe dream. Or is it?
Opportunity for first-time buyers in Limehouse, E14
The government’s shared ownership scheme is designed to help people buy a property on the open market in an area where they already work or live. It is also known as part buy, part rent because in essence, this is what you do.
If we take a typical two-bedroomed flat for sale in the attractive Limehouse marina it will generally go for between £600,000 and £700,000. Consequently, this may seem way out of budget for the average worker. If however, shared ownership is put into place, it finally becomes a possibility. You could buy a share of this same new home from £160,000.
How Shared Ownership Works
Buyers need to have saved a 5% deposit. They basically receive an equity loan of up to 40% the cost of the home from the government. Applicants then avail of a mortgage to pay the remaining percentage of the price. Capped rent is paid on the governments portion and standard mortgage payments are in place on the rest. It really can be an affordable solution to live in the area you love. There are terms and conditions but ultimately most of the leading lenders are offering London help to buy and can give you advice.
What’s The Catch?
This is a great scheme. It can be used to buy properties with a market value of up to £600,000. You do, ultimately have to buy back the government’s shares however. The sooner you do it the better. The percentage they own is always the percentage of the current market value of the property. Not the percentage value at the price it was bought.
With that in mind it is worth having a future plan in place. You can buy the shares back by ‘staircasing’, which is basically buying it back in stages. Up to four steps including your initial purchase and that amazing property could be all yours!
Interested in buying an apartment in E14?
For any other information on this scheme or to see if we have any available properties that would match the criteria, please give our Canary Wharf Office in E14 a call or click on the links below. We have your dream area covered.