First Homes scheme: first-time buyer's guide
Selling the property
You can usually only sell the property to someone who is eligible to buy a First Home.
You must give them the same percentage discount that you got, based on the home鈥檚 market value at the time of sale.
How to sell
Follow these steps:
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Tell your local council that you want to sell.
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Find an estate agent to sell your property under the First Homes scheme.
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Get the property valued by a surveyor who鈥檚 registered with the .
The amount the surveyor values it for minus the percentage discount you originally got is what you can sell for. You cannot sell the property for more but you can choose to sell it for less.
Example
You originally got a 30% discount.
A RICS surveyor values your property at 拢200,000. You must take off a 30% discount (拢60,000).
You can sell for up to 拢140,000.
Your buyer will need to meet First Homes eligibility criteria, including any local criteria. Once your property has been on the market for more than 3 months, your buyer will no longer have to meet local criteria.
Selling your property on the open market
You can ask your local council for permission to sell your property at the full market price to any buyer if either:
- you鈥檝e tried unsuccessfully to sell your property as a First Home for 6 months or more
- selling it as a First Home will cause you severe difficulties, such as bankruptcy
The council can:
- agree to let you sell it on the open market
- offer to buy your home at the discounted price
- ask you to continue trying to sell for a further 6 months - if you still cannot sell it after this time, the council must let you sell it on the open market
If the council agrees to selling on the open market
You鈥檒l need to return the percentage discount to the local council. This means giving the council the same percentage of the sale price as the percentage taken off when you bought your home.
Example
You buy a First Homes property worth 拢250,000 for 拢175,000 after getting a 30% discount.
You later sell it on the open market for 拢300,000.
You must return to the council 30% of the money you sold the home for, which is 拢90,000.