Buying your first home can be a daunting task, and it can be very difficult to raise enough funds without financial assistance. Thankfully, the Scottish government contributes to a percentage of the cost through the Low-cost Initiative for First-Time Buyers (LIFT) scheme.

Let’s take a closer look at what the LIFT scheme is, who is eligible, and how you can apply to become a part of the scheme.

What is the LIFT scheme?
The LIFT scheme, which replaced the Help to Buy scheme in 2023, is a shared-equity programme aimed at helping people purchase their first home in Scotland. Although the LIFT scheme is split into two very similar sub-schemes, the New Supply Shared Equity (NSSE) scheme is the only one that is currently open for new applications, as the Open Market Shared Equity (OMSE) scheme is not taking any new applications until next year’s budgets have been decided.

The NSSE scheme allows first-time buyers to purchase a new-build property from a council or housing association. This scheme requires buyers to cover just 60 to 80% of the property’s cost, while the Scottish government holds the remaining share. The buyer owns the home outright and has their name on the title deeds, but to ensure the Scottish Government's share is safeguarded, there will be a mortgage (also known as ‘standard security’) on the property.

Who is eligible?
The NSSE scheme is open to all first-time buyers in Scotland, as well as:

• Disabled people
• Members of the armed forces
• People aged 60 or over
• Veterans who have left the armed forces in the past 24 months
• Those who have previously owned a home and have had a major change in circumstances

How to apply
To apply for the NSSE scheme, you need to get in touch with your local council or the appropriate registered social landlord directly to receive more details about the scheme and instructions on how to submit an application. The social landlord will require information about your current income, the size of mortgage you can afford, the amount of personal contribution you can make to the costs, details about your household, and your current place of residence as part of your application.

Increasing your share
After purchasing a home through the LIFT scheme, you will have the option to buy a larger share of your home further down the line. If you wish to do this, you must increase it by 5% per year. You can normally increase the share all the way to 100%, but in some cases, the government may retain up to 20%. This is known as the 'golden share', and it primarily occurs when you live in an area with less affordable housing. Your local estate agent will be able to determine whether your shared equity arrangement includes a 'golden share'.

Selling your home
You are free to sell your home at any time, no matter what share percentage you have in the property, as long as you obtain a home report and get in touch with the administering agent for your region of Scotland before listing it for sale. Your equity ownership in the property will determine what proportion of the sale price you receive. For example, if you had a 90% stake in your home, you would receive 90% of the sale price, with the remaining 10% going to the Scottish government.

How your agent can help
A trusted estate agent will help you with all aspects of your LIFT scheme application. They will assist you in determining how much of a share you can afford to buy and locating a property that can be purchased from a council or a housing association. They will help you get in touch with the council so that you can give them your details and complete the application. Additionally, they will help you calculate whether or not you can afford to increase your share and help you sell the property for a good price if you decide to do so in the future. When the OSME scheme reopens for applications later this year, your estate agent will let you know what opportunities arise as a result.

 

Looking to buy your first home? Contact us today

 

 

Love is in the air at this time of year. Although you may still love your home, ask yourself, Are you ‘in love’ with it? If the answer is no, here are some ideas to bring back those special feelings. Or is it time to move on by finding a property you adore?

Seek inspiration
Your friends, family, magazines, online articles, and favourite home improvement TV shows are all fantastic sources of inspiration. Open your mind and consider homes that are completely unlike yours. Nature and art can not only add a new dimension but also give you plenty of ideas. Amid this, it is important not to forget the most important things, and that’s you and the people who share your home. So, express yourself and add a bit of you, whether that’s your love of weathered furniture or photography of local scenery.

Experiment with your layout
Do not underestimate the massive impact that rearranging your furniture can have. Perhaps there is a better use of your space. You could start by changing the location of larger furniture, such as tables, chairs and sofas. If rearranging isn’t enough, you could introduce new themes, such as antique contrasted with modern minimalism, and change the whole feel of a room. Although ‘de-cluttering’ may be tempting, it is important to retain items and furniture which have joyful memories attached to it.

Home improvements
Many homeowners are improving their homes with future buyers in mind. There are hundreds of ways to add value to your home. On trend for 2024 are al fresco living spaces, glass door walls, smart technology, efficient kitchens, and eco-friendly upgrades such as solar panels. Adding another room by converting existing spaces and removing walls can make your home feel much larger. With the right renovations and decorations, your entire home will feel like new.

Discover a nicer house
Sometimes it’s easier to move to a better home. Home improvements can be far more stressful than moving. And if you know you would be happier in a different home, it’s an easy decision. Fulfil your desire for improved garden space, a beautiful bathroom, better views all in your ideal location by simply moving. Many UK homes have undergone vast improvements, and good agents make moving easy. All you have to do is decide which home you love more—your existing home or your next!

 

Whether you’re on the market for your first home, or looking for an investment property, one of the key things to consider is: how much work are you willing to put in once you’ve been handed the keys?

If you’re on the fence between buying a fixer-upper or a move-in ready home, here are some pros and cons for both:

Fixer-uppers
A ‘fixer-upper’ is a property which requires thorough renovation and repairs before it can become a comfortable living space. Because of this, fixer-upper homes are generally sold for a much lower market value than homes which are ready to live in.

This type of home may be an ideal purchase for a first-time buyer or an investor, as they may be able to make a substantial profit by renovating and reselling.

Pros

• Lower upfront costs: Fixer-uppers can command much lower asking prices than similar homes that are move-in ready. Those selling fixer-upper homes usually wish to achieve a fast sale, so you might be able to snag a good deal if you get your offer in quickly.
• Personalisation and customisation: For some, the allure of a fixer-upper comes from the ability to use the home like a blank canvas and customise it to their exact liking.
• Adding value: Transforming a fixer-upper is a great way to achieve a return on investment, as there is plenty of scope to add substantial value to the property. From replacing outdated features to improving the home’s aesthetics, you can potentially profit from a fixer-upper home when the time comes to sell.

Cons

• Time: Time is our most valuable commodity, and renovating a home requires a lot of it. If you’re hoping to move in and get settled down quickly, a fixer-upper might not be for you.
• Costs: While the initial savings can be enticing, remodelling a home might cost you more than you expected. Even if you have budgeted thoroughly, there may be some costs for repairs which you hadn’t planned for. It’s important to carefully consider your financial standing before investing in a home which needs serious restoration work.

Move-in ready homes
‘Move-in ready’ is a broad term as it can cover many degrees of readiness. But fundamentally, a move-in ready home requires little to no maintenance or repair before its next owners can move in. The homes have plenty of appeal, as they may have been recently renovated, and buyers may be able to unload their furniture and get settled in right away.

Pros

• Convenience: One of the key advantages of move-in ready homes is the convenience they offer. Buyers can save time and effort as they don't need to deal with extensive renovations or repairs before moving in. This is particularly appealing to those with busy schedules or those who want to start enjoying their new home immediately.
• Cost savings: While move-in ready homes may have a higher upfront cost, they can often save buyers money in the long run. The expenses associated with immediate repairs or renovations are avoided, preventing unexpected financial burdens.
• Faster occupancy: The name itself implies that these homes are ready for move-in day. This can be advantageous for those who need to move quickly, whether due to job relocation or other personal circumstances.

Cons

• Higher initial costs: Move-in ready homes often come with a higher price tag compared to fixer-upper properties. Buyers may pay a premium for the convenience of not having to invest time and money into renovations. This can limit the options available for those on a tight budget or looking for more affordable housing solutions.
• Limited customisation: While move-in ready homes may be aesthetically pleasing, they often lack the level of customisation that some buyers desire. Some may find these homes restrictive, as major renovations may not be necessary but are also not easily accommodated.
• Potential overlooked issues: Even though a home is labelled as move-in ready, there's still a risk of overlooked issues. Buyers should conduct thorough inspections, as cosmetic upgrades might mask underlying problems. When house-hunting, it's important to ensure that the home is not just visually appealing but structurally sound to avoid unexpected maintenance costs down the line.

Whether you’re looking for an investment property or your dream home, contact our expert team today

 

Whether you’re an experienced landlord looking for new investment opportunities or looking to take your first steps to becoming a landlord, the market is looking promising as we settle into 2024. Let’s look at how the rental market is shaping up and how you can benefit from it as a landlord.

Rental prices are on the rise
One of the main reasons you should be feeling optimistic as a landlord is that rent prices are predicted to continue rising. According to Zoopla’s rental index, average rental prices increased by 9.7% across 2023, increasing income for landlords.* It is predicted that average rent prices will increase by a further 5% this year*, further maximising return on investment for landlords, who could use this added income to expand their portfolio or make improvements to their existing properties.

Mortgage rates have decreased
More positive news for landlords is the recent announcement that mortgage rates have decreased, making property investment more affordable. These days, it’s possible to get a 5-year fixed-rate mortgage below 4%, meaning you can obtain a better deal when investing. As banks fight for business, increasingly attractive deals are becoming available.

Better deals on buy-to-let mortgages will also appear, which will help you expand your portfolio and increase your rental income. With lower interest payments, a larger proportion of your rental income can be distributed towards property maintenance and upgrades to increase the value of your existing properties and enhance the overall profitability of your portfolio. You also have the option of refinancing your existing mortgages at the new interest rates, reducing your overall borrowing costs for the entire duration of the mortgage.

There is plenty of choice
Now is an opportune time to search for new properties to invest in, as there is currently a high volume of properties on the market. On Boxing Day 2023, over 10,000 new properties were listed on the market, which is the largest number of new listings in a single day since 2011.** With an abundance of properties to choose from, you can select those that align with your investment goals, budget, and target market.

 

This high supply of properties will allow you to diversify your portfolio and spread your investments across several types of properties. For example, you may decide to buy a larger property and convert it into a Home for Multiple Occupancy (HMO), which often produces higher rental yields than regular lettings.

How an estate agent can help you
If you’re looking for properties to invest in, an experienced estate agent will conduct a thorough market analysis to understand the trends and dynamics affecting property prices in your area. This knowledge will allow you to set the right rental price, maximising your rental income while remaining competitive in the market.

Additionally, an estate agent will identify strong investment opportunities and negotiate a competitive price for any properties you may be interested in, maximising your return on investment.

 

With the arrival of sub 4% mortgage deals, banks are attempting to outdo each other by setting headline-grabbing rates. And with better deals on the horizon, with lower rates for those with smaller deposits, homemovers are starting to make a move.

Your property’s value will increase
As interest rates lower, demand for your home increases. Your home has become more affordable to buyers who need a mortgage to purchase it. A rejuvenated property market, which is enduring a shortage of homes, means your property's value increases. But as prices rise, you may have to borrow more, so it could be worth making an early move to get ahead of buyers returning to the market.

A quicker sale
With more buyers returning to the market, you are more likely to achieve a quicker sale. Let’s be honest: once you have decided to move and have found the right home, you want the entire process over and done quickly. Better mortgage deals mean more buyers are in a position to move. This also applies down the chain, meaning you are less likely to encounter delays.

An increase in certainty
The UK property market performed far better than many expected in 2023. In the aftermath of so many interest rate increases, the steadying of the base rate towards the end of last year came as a big relief to many homeowners and homemovers. Lowering interest rates and a positive outlook for the year ahead mean you can feel more confident as confidence in the market increases.

Lower mortgage payments and faster equity growth
Lower rates mean lower mortgage payments, with more of your payment contributing to the outstanding balance of your mortgage. This means you can build up equity far quicker. If you are planning on moving to your forever home in a few years, lower rates mean that you can move up the ladder more quickly. Financing home improvements also becomes more affordable.

There are other ways to save
Moving to a better home and making good investments has a hugely positive impact on your life. There are plenty of ways to make moving a viable financial option to counter slightly higher interest rates. If you can save on your commute, enjoy greater energy efficiency, have a better work-from-home space, and make your family happier, you will save money.

Your property story can begin
Are you a first-time buyer, downsizing, planning on retiring to a holiday home, or want to boost your pension while living in a more compact, energy-efficient property? Perhaps you love restoring and improving properties, like living in them for a few years, then moving on to the next project. Maybe you could be a fully-fledged buy-to-let investor?

 

Become the author of your moving success story by contacting us