What if I don't have enough money to pay the required 8.5% deposit?
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1
What is the Affordable Property Program?
The Affordable Property Program, or Rent To Buy Property Solution, is a solution designed for people who want to buy a residential property but do not have enough money to pay a sufficient deposit required by banks, have a bad credit history or too low earnings and are unable to obtain a mortgage.
2
Who can participate in the Affordable Property Program?
To take part in the Affordable Property Program you must be over 18 years old, have money for a deposit of 8.5% of the price of the property you are choosing to buy, and money for Stamp Duty Land Tax (SDLT).
3
What is Stamp Duty?
Stamp Duty Land Tax (SDLT) is a tax you might have to pay if you buy a property in England or Northern Ireland but you’ll only have to pay it if the house you’re buying is over a certain price. You’ll pay Stamp Duty on residential properties costing more than£250,000, unless you qualify for first-time buyer’s relief.
Eligible first-time buyers will pay no Stamp Duty on properties costing up to £425,000, and a discounted rate on property purchases up to £625,000 (tax £10K).
4
Do I have to pay Stamp Duty?
If you’re buying a residential property or piece of land in England or Northern Ireland, you’ll have to pay Stamp Duty Land Tax (SDLT) if your purchase is over the threshold of £250,000.
The Program Participant, the Tennant Buyer, is required to pay Stamp Duty costs. The Stamp Duty is usually 3% of the property purchase price.
To find out if you can reduce your SDLT, please contact your consultant.
5
How much does it cost to participate in the Program?
There is no fee to join the Program, however a registration fee of £1,495.00 is payable at the time of application. The registration fee is fully refundable to the Participant once the Participant has paid the first rent on their property.
6
What if I don't have enough money to pay the required 8.5% deposit?
Please ask your consultant if you are eligible to take advantage of the option to pay your deposit through the instalment-payment plan.
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