First Time Buyers Conveyancing Solicitors

FTB discount Now £72 inc VAT (excluding Right to Buy matters)

This page has been set up by Campion‘s  Conveyancing Solicitors and Estate Agents, Nottingham and Derby, with the aim of helping First Time Buyers.

We understand that there are issues which are unique to First Time Buyers. Equally some of the matters that First Time Buyers will be concerned about will not be specific to them.

First Time Buyers Relief – SDLT (formerly Stamp Duty for a First Time Buyers)

In November 2017 the government introduced First Time Buyers relief for SDLT (Stamp Duty Land Tax). If First Time Buyers buy a property for £500,000 or less then they pay no SDLT on the first £300,000. After that figure first-time buyers will pay SDLT at the  rate of 5%. So by way of example if first-time buyers bought a property for £400,000 then they would pay £5000 being 5% of the amount between £300,000 and £400,000.

If two individuals are buying a property then both must be First Time Buyers to obtain the relief. However it would be possible for one partner to buy the property and they would not lose the benefit of this relief even though their partner, whether married or unmarried, was not a First Time Buyer. This is subject to the following numbered paragraphs.

  1. However if the partner is Married or in a Civil Partnership with a First Time Buyer and has an existing property (not a past property) then the following applies.
  2. Even if  the first time buyer is buying in his or her own name then they have to pay the Second Home Charge and do not get FTB relief.
  3. This is because married partners or those in a Civil Partnership are classed as one for the purposes of Second Home Charge. Second Home Charge overrides FTB relief.

The basic definition of a First Time Buyer is an individual who has not owned a residential property whether in England and Wales or any other legal jurisdiction. Special rules apply where an individual has inherited property. If an individual has inherited a property then he or she will not be a First Time Buyer. If that individual has inherited money from an estate in which there was a property then that individual might still be a First Time Buyer if he or she never became an owner of the property. We can advise further on this issue which is complex.A first time buyer must live in the property or have the intention to do so to obtain the relief. Therefore a buy to let property would not qualify for this relief. An intention will suffice if the buyer cannot move in initially because the property is not in a habitable state. We can advise on any issues arising from SDLT and if you have questions you should email Jwhitmore@campions.co.uk.

Gifts to assist with buying the property

It is a cliche but many First Time Buyers will obtain their deposit from the “bank of mum and dad“. Lenders will not tolerate loans for deposits and therefore the deposits can only be provided by way of a gift.

We must ensure that those giving money are fully aware that it is a gift and as such is not returnable. We shall do this by sending to The Giftor or Giftors.

The Giftor will then be asked to sign this form stop you will see that the Giftor is asked whether or not he or she would like independent legal advice stop paragraph the Giftor has to comply with money laundering regulations (MLR). Therefore the giftor Will have to provide proof of funds in the same way as any buyer e.g. six months bank statements. This is under the Money Laundering Regulations 2017.

What happens if the property is bought in joint names and one owner dies?

Here the position differs as to whether the property has been bought as a joint tenancy or as a tenancy in common. If the property is bought as a joint tenancy then the right of survivorship applies. That means that the survivor will take the entire property regardless of any will made or whether whether the parties are married or not. The position is different if there is a tenancy in common regardless of whether the tenancy in common is in equal or unequal shares. In these circumstances the  property will go to the estate of the owner of part who has died. In the case of parties who are not married then the share will  not go to the other party. In those circumstances it might be best to make a will leaving shares in the property to the other party.

How does the type of ownership of a property become recorded?

Above we have referred to the different types of ownership, for instance, joint tenancy, tenancy in common equal shares, and tenancy in common unequal shares. The first way in which such ownership is recorded is in the Transfer document or TR1. That document at paragraph 10 sets out the ownership of the property. If there is a tenancy in common unequal shares, then we recommend a deed of trust.
Then after completion we register the Purchase at the Registry. The registry are informed of the type of ownership. If the ownership is a tenancy in common then the following appears on the Registry Title in B. This is referred to as a Form A Restriction.
Please note though that all that states is that the property is owned as a tenancy in common. The restriction does not give the degree of ownership, for instance whether in equal or unequal shares, and if the latter the shares of the parties.
It is therefore extremely important that a copy of the trust deed is retained by the parties themselves.

Help to Buy ISA

The scheme is closing on the 30th November 2019
Under this scheme announced in 2015 you save and the government will add 25% to your savings. The minimum you must save is £1600 so the government will add £400. The maximum you can save is £12,000 and on that amount, the government will add £3000.
Conditions of the Help to Buy scheme include:
  • You must be over 16,
  • You must be a First Time Buyer,
  • The property must be in the UK,
  • The maximum cost of the house is £250,000 or £450,000 in London,
  • It is not a Second Home or a Buy to Let property,
  • It must not be rented out when bought,
  • It must be bought with a mortgage.

When acting for First Time Buyers Campions will apply for the government bonus, which will then be added to the money that will pay for the property.

Help to Buy: Equity Loan

This is a loan that is available from the Government. The government will lend you up to 20% of the cost of the property. It is only available for new build properties. If and when you repay you will have to repay the same proportion of the property as the original loan. So if you had an original HTB Loan for 20% of the property then you would pay 20% of the value  when you redeem the Charge.
In London the maximum amount you can borrow under the Help to Buy scheme is 40%.
This scheme is not limited to First Time Buyers. Full details can be found under help to buy.gov.uk

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For a payment of £60.00 including VAT upon instruction, you can rest assured that should your conveyancing transaction fall through, for whatever reason, you will not be charged any solicitors fees. This fee is payable per transaction and therefore if you had a sale and purchase with us you would need to pay £60.00 for each.

Should your sale or purchase fall through without having taken the No Move/No Fee option we will charge a fee as is reasonable for the amount of work done by that stage.

A discount of £20.00 plus VAT (£24.00) is available on all transactions if you are one of the following:

First Time Buyer
Cash Buyer
Buy to let Landlord
Previous client (where we acted for over the last 3 years)
If you qualify for this discount, simply deduct this amount from your total online quote and advise us of your circumstances on instruction.

Terms and Conditions

Only one deduction per transaction (e.g if both cash buyer and buy to let landlord we deduct £24.00).

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