HUnters Bring To The Market For Sale This 3 Bedroom Terraced Home On Ainsford Way, Ormesby - With No Chain.
An excellent opportunity for first time buyers or as an investment with over 7% Rental Yield. Having recently been accepted as part of regeneration in the area, the property will be undergoing external rendering and will also benefit from a new energy efficient central heating system as part of assisted Government funding. The property briefly comprises; Entrance Hall, WC, Lounge/Dining Room, Kitchen, Bathroom, 3 Bedrooms, landscaped Garden to front and Patio to rear. Upvc double glazed windows and doors, On Road Parking. No Chain.
Call Brian @ Hunters Ormesby on to view or information 7 days a week from 8am to 8pm.
(3.66m x 0.91m) - (12' 0" x 3' 0")
Upvc double glazed glass insert entrance door to Hall, WC, under stairs storage cupboard, door to Lounge and Kitchen
(0.94m x 1.55m) - (3' 1" x 5' 1")
With WC, wash hand basin and Upvc double glazed window.
(6.10m x 3.66m) - (20' 0" x 12' 0")
With Upvc double glazed bow window to front aspect, double glazed sliding door to rear patio and garden. Airing cupboard housing gas central heating system and door to Kitchen.
(2.74m x 2.13m) - (9' 0" x 7' 0")
Fitted with a range of wall, floor and drawer units with roll top laminate work surfaces. Space for free standing gas/electric oven, plumbing and space for washing machine and refrigerator. Upvc double glazed window to rear aspect. Stainless steel sink and drainer.
(2.44m x 0.64m) - (8' 0" x 2' 1")
Giving access to loft via hatch, Three Bedrooms, Bathroom and Airing Cupboard (housing water cylinder).
(2.46m x 3.66m) - (8' 1" x 12' 0")
To front aspect, with Upvc double glazed window.
(3.05m x 3.66m) - (10' 0" x 12' 0")
To rear aspect with Upvc double glazed window.
(2.13m x 3.05m) - (7' 0" x 10' 0")
To rear aspect with Upvc double glazed window.
Consisting of a coloured 3 piece suite comprising; Panelled bath with electric shower over, wash hand basin and WC. Upvc double glazed window.
Garden & Patio
Fenced landscaped/low maintenance garden to front. Patio to rear, with shed and entrance gate.
Help To Buy Scheme
Help to Buy Guide - Your Questions Answered
Buy with as little as a 5% deposit
Help to Buy – what's that
The scheme announced by George Osborne in March's budget is the Treasury's attempt to encourage banks and building societies to offer mortgages to homebuyers with small deposits for properties of up to 600, 000. The first part of the scheme began in April. It allowed first-time buyers, and movers who want to purchase a new-build house or flat, to borrow 20% of the property's value from the government. Those loans were interest free for the first three years; all borrowers needed was a 5% deposit and a 75% mortgage.
So how is phase II different
It will see taxpayers underwrite up to 15% of a mortgage for loans where a buyer has only a small deposit, of 5% (or more) of the property's value. Lenders who want to offer mortgages of up to 95% loan to value (LTV) but do not want to take on all of the risk will be able to buy a guarantee from the government for up to 15% of the loan. This allows the lender to claim on the guarantee if the property is ever repossessed and sold at a loss. This second phase was expected to launch in January 2014, but the government now says it will go live in the coming days – although it is not clear when lenders will start to use the scheme.
What will the 'mortgage guarantee' guarantee
The government will compensate the lender if the property is repossessed and it is unable to recover all its loan from its sale. The deposit would be lost first, and then the government would cover the next 15% of loss. But the lender will also have to take a 5% hit on the government's compensation, to deter it from making reckless loans.
How Does That Work In Practice
For example, a customer takes out a 95% mortgage on a property costing 100, 000, providing a 5, 000 deposit. The lender takes out a guarantee with the government for 15% of the property's value.
Subsequently, the lender repossesses the property, and only raises 65, 000 by selling it. The deposit is wiped out, and the guarantee then pays out 14, 250 – the 15% of the loan covered by the guarantee, less a 5% cut. The remaining 15, 000 loss falls on the lender – which would have lost 30, 000 without the guarantee.
How long does the guarantee last
It will be valid for up to seven years after the mortgage is taken out.
What if the property goes into negative equity
The guarantee will not help the buyer or lender if the property falls in value. It only kicks in if the borrower falls into difficulty with the mortgage and their home is repossessed.
How much will it cost lenders
This is still the big question, as the price of the guarantee is fundamental to the scheme's success. If it is too expensive, there will be no point in lenders using it. If it is too cheap, it could potentially break European rules on state aid. The Treasury has said it will offer bands of prices based on the Ltv of the mortgage, with higher LTVs likely to cost the most as they are the riskier deals.
Will every lender offer it
Probably not. Industry insiders predict that some lenders will not take part in the scheme. Just three have signed up so far – Royal Bank of Scotland, NatWest, and Halifax.
How much will it cost the taxpayer
The government has said it will put 12bn into the scheme, which is expected to run for three years. It would lose money in cases where a mortgage holder defaults, and a repossessed property is sold for less than the outstanding mortgage value, even after the mortgage holder's deposit is wiped out. But it should make a profit on loans where the guarantee is not triggered.
Who Will Be Eligible
Both first-time buyers and movers can apply for the scheme, but they will need to be able to afford the mortgage repayments and will need a reasonably clean credit history: anyone who has a county court judgment against them for more than 500 in the three years before they apply for a loan will be barred. It is not available to people buying second homes.
What type of properties can they buy
The scheme is available on both new and existing homes costing up to 600, 000. Lenders have their own rules about what type of properties they will lend on – for instance, some will not offer loans on homes above shops – and these criteria are likely to still be applied.
As the scheme is not available on second homes, borrowers will be asked to sign a declaration that they do not own another property anywhere in the world. It also is not available on buy-to-let properties, and cannot be used in conjunction with the government's NewBuy scheme.
How will people apply
It is possible that borrowers will not know that they are applying for a loan through this part of the Help to Buy scheme as the guarantee will be bought by the lender and the deal could happen behind the scenes – lenders might just advertise 95% loans with no mention that they are being backed by the taxpayer.