237 Brixton Hill SW2
This project comprises of the demolition of an existing single storey building and the construction of a new 5 story block with commercial unit on ground floor and 13 apartments above.
Project Value: £3.2m
Project Start Date: 7th October 2019
Estimated Completion Date: January 2021
Client: Tailored Living Solutions
LATEST NEWS; EVENING STANDARD 'HOMES & PROPERTY' REPORT ON 28TH OCTOBER 2020
Double dip on state help for your first flat
Ruth Bloomfield explains how pairing Help to Buy with the stamp duty holiday can give buyers on tight budgets a leg up
For the next five months first-time buyers can take advantage of a double whammy of government support to knock thousands of pounds off their buying costs and reduce initial deposit requirements to just five per cent.
The stamp duty holiday runs until the end of March next year and there is no tax to pay on properties priced up to £500,000 – a saving of up to £15,000.
Meanwhile the Government’s Help to Buy scheme, which runs until 2023, helps new buyers without a huge pot of money behind them to get on to the property ladder.
In London the scheme allows first-timers to spend up to £600,000 on a newly built property, putting down a minimum five per cent deposit. They can then take an equity loan from the government of up to 40 per cent, and get a mortgage to cover the rest.
What this means, in real terms, is that if you spend £500,000 on a first home you won’t pay any tax and your minimum deposit is £25,000. Furthermore, buyers using Help to Buy are managing to sidestep the current shortage of mortgages for people wanting to borrow 85 or 90 per cent of the value of a property. As far as lenders are concerned between your deposit and your government loan you are putting down a large chunk of the value of the property, making you a safe bet to lend to (and allowing you to access lower interest rates).
There is plenty of choice of homes available under the scheme, even though £600,000 doesn’t go particularly far when you are talking brand new homes in the capital. The real stumbling block is the loan. After five years you start paying interest on your loan. The idea is that you will have a better job or a few pay rises over five years, but in the current economic climate this simply can’t be taken for granted.
If interest repayments do prove a problem then Help to Buyers have an option: as long as the property is worth more than they paid for it they can sell up and take their share of any capital growth with them. Last month Savils predicted that the capital’s property market would rise 12.7 per cent from 2020 to the end of 2024.
WHAT YOU COULD GET WITH HELP TO BUY
You might think you’d be priced out of Brixton but at the boutique Two Three Seven Brixton Hill development (tailoredlivingsolutions.com) you could use H2B to pick up an open-plan, loft-style flat from £450,000. A heat recovery system promises low running costs plus residents can access a private garden; some flats also have balconies. Ultra-fast broadband is great for WFH, and little extras include a Sonos wireless sound system. Trains from nearby Streatham Hill station take a swift 18 minutes to Victoria
Senior Site Manager