How to purchase a First Home

Buying a First Home is similar to buying a normal market home.  The main difference is that the purchaser's eligibility has to be confirmed by the local authority near the start of the purchase process.In the case of an initial sale, First Homes applications can be made to the builder who is developing the site. In the case of resales, applications can be made to the estate agent who is selling the property.

Once you have found a First Home that you would like to purchase, the following steps would be taken to purchase the property:

Complete the application form

1)    The builder (new build properties) or the estate agent (resale properties) will assist you to complete the relevant application form and check your eligibility for the property. As part of this process it is strongly recommended that you seek financial advice about mortgage availability from a mortgage advisor. You should also have a solicitor/conveyancer to advise you on the purchase.  The builder or estate agent may suggest some names for you to try but you are free to choose your own advisors.

You will need to provide the following evidence as part of your application:

o   A mortgage Decision in Principle (Interest only mortgages will not be considered)

o   Evidence of a full year's annual income (this must be the most recent year). This will most likely be in the form of a P60 or an employment contract if a P60 is not available

o   Appropriate evidence of Local Connection (if applicable)

2)    NEW BUILD PROPERTIES ONLY - Once the application form has been completed you will then reserve the home from the builder and pay a reservation fee to the builder (maximum of £500 permissible).  This is refundable if you are found not to be eligible. 

3)    The completed application is then sent by the builder/ estate agent to the local authority for their consideration. 

4)    The local authority will check your application. If you meet all the requirements we will issue a First Homes 'Authority to Proceed' to you, the developer/ estate agent, mortgage advisor and your conveyancer.  We aim to process fully completed applications within 5 working days, however if the application is incomplete this will cause a delay.

Once your application has been approved

5)    You can now apply for your mortgage.  It is very important that you do not submit your full mortgage application until you have the 'Authority to Proceed' as submitting a full mortgage application will incur cost and you should not do this until you know you are approved to buy.

6)    Your conveyancer will work on your purchase and follow the local authority's instructions.  As part of this process you will have to make a further legal declaration that you are eligible and understand the terms of the First Homes scheme and that you can only resell the home in the future to another eligible First Homes purchaser.

Request to exchange

7)    Once your mortgage offer has been approved and the contract agreed with the builder/estate agent, your conveyancer will request approval to exchange contracts from the local authority.

8)    The local authority will check the conveyancer's request and if it is compliant we will issue an 'Authority to Exchange' and 'Compliance Certificate' to your conveyancer.  It is very important that you keep the 'Compliance Certificate'.  This shows you are eligible and entitled to be a First Homes owner.

Exchange contracts and deposit

9)    After you have received the 'Authority to Exchange' you will need to pay your deposit (usually 5%) and exchange contracts to buy.  At this point you are legally committed to buy.
Please take great care when paying your deposit to your conveyancer and follow your conveyancers instructions carefully. Fraudsters can impersonate conveyancers and request payment. 

10) At the point of exchange your builder/estate agent will have confirmed how long it will take to complete your home so that you can move in (Legal Completion). The time between exchange and legal completion (when you move in) is usually expected to be no more than six months.

Completion

11) Once the builder has given notice of legal completion, your conveyancer will get your mortgage money from your lender to pay the builder.  On the date of legal completion, you will get the keys and can move into your First Home.