First Homes

First Homes with a 30% discount to market value are available on selected new-build homes in England, subject to availability, eligibility, terms and conditions.

What is this First Homes scheme?

1.1 This is a Government-backed scheme designed to help eligible first-time buyers onto the property ladder, by offering selected new-build homes for sale with a discount of at least 30% compared to the open market value ('First Homes Discount').

1.2 This First Homes scheme is only available to first-time buyers that have first been approved by the local authority (for the area in which the First Homes property is located) as meeting the First Homes Eligibility Criteria, set out below ('you/your/buyer(s)').

1.3 The 'First Homes Provisions' regulating the use (during ownership) and sale of a First Homes property, apply to both the initial sale of a First Homes property from us to you, and then continue to apply to all future sales of that First Homes property (subject to limited exceptions). These First Homes Provisions are explained in detail in the First Homes Customer Guide, but will mean that you, and any subsequent owner of a First Homes property (subject to limited exceptions, explained in the First Homes Customer Guide), can only sell a First Homes property:

• to buyer(s) that meet, and have first been approved by the local authority as meeting, the First Homes Eligibility Criteria (see below); and

• at a price which is the market value of the property at that point in time, less the same First Homes Discount that was applied to the initial sale. This First Homes Discount percentage is fixed and cannot alter, even if you have made improvements to your home, or if the market value of the property increases or decreases over time. As the market value of the First Homes property increases or decreases over time, the actual financial amount of the First Homes Discount will also increase or decrease over time in the same way. So, the seller of a First Homes property will only receive the discounted purchase price (ie 70% of the property’s market value where the First Homes discount is 30%) not the full market value, on the sale of a First Homes property under this scheme. See the example given in the First Homes Customer Guide which shows how the financial amount of the discounted purchase price may change as the market value of a First Homes property increases or decreases over time.

This is to help ensure that generations of new buyers and the local community will continue to benefit, every time a First Homes property is sold.

1.4 'We/our/us' in these Terms and Conditions refers to BDW Trading Limited. Barratt London is a brand name of BDW Trading Limited (Company Number 03018173) a company registered in England whose registered office is at Barratt House, Cartwright Way, Forest Business Park, Bardon Hill, Coalville, Leicestershire, LE67 1UF.

1.5 For full guidance on this First Homes scheme, and the First Homes Provisions regulating the use (during ownership) and sale of a First Homes property, please read:

• the First Homes Customer Guide, using this live website link: First Homes scheme: first-time buyer's guide;

• for more information, take a look at: https://www.ownyourhome.gov.uk/scheme/first-homes/

What are First Homes under this scheme?

1.6 First Homes properties are newly built homes, which are of the same quality and meet the same standards as other equivalent (non-First Homes) newly built homes on the same development, but they are offered for sale with a discount of at least 30% of the open market value (the First Homes Discount), which will continue to be applied to any subsequent sale of the First Homes property.

1.7 First Homes are only available on selected new-build homes in England, up to a maximum price (after applying the First Homes Discount) of £250,000, or £420,000 for First Homes in Greater London (or any lower price cap set by the local authority). These price caps only apply to the initial sale of a First Homes property from us to you, so will not apply to any subsequent sale of that First Homes property.

1.8 First Homes that are flats/apartments can be sold as leasehold, but First Homes that are houses should be sold as freehold.

First Homes Eligibility Criteria - Who is Eligible?

1.9 For all First Homes sales (both the initial plot sale and any subsequent sale of a First Homes property) the following 'First Homes Eligibility Criteria' must be complied with:-

• All buyers (if more than one is purchasing, then each of them) must be a 'first time buyer' with a joint gross income of no more than £80,000 per year or £90,000 per year for First Homes in Greater London. This is known as the 'National Eligibility Criteria';

• Buyers will need to use a repayment mortgage or home purchase plan to fund at least 50% of the First Homes discounted purchase price. Interest only or buy-to-let mortgages will not be approved for use on First Homes.  The deposit with any further cash contribution from the buyer(s) and the mortgage, added together must be equal to, and no more than, the First Homes discounted purchase price;

• Buyers will need to occupy the First Homes property as their only home/main residence for the duration of their First Homes property ownership;

• Buyers may also need to meet any additional 'Local Eligibility Criteria' (if any) set by the local authority for the area in which the First Homes property is located, as specified in the legal agreement between us and the local authority known as a Section 106 Agreement. The Local Eligibility Criteria is designed to enable local authorities to prioritise First Homes according to their Area’s priority needs. Local Eligibility Criteria can, for example, comprise the following:-
  
  - at least one of the buyer(s) must have a local connection; and/or
  
  - at least one of the buyer(s) must be a keyworker; and/or
  
  - at least one of the buyer(s) is an Armed Services Member (see below for what this means); and
  
  - a lower combined household annual gross income cap.
  
  The local authority will determine the full extent of the Local Eligibility Criteria in force, and the status of any “local connection” or “key worker”, applicable at the time of any sale of a First Homes property.
  
  Our Sales Advisors will notify you of the details of any Local Eligibility Criteria that apply (if any) to your selected First Homes property. However, the Local Eligibility Criteria can change at any time, so the Local Eligibility Criteria which applied (if any) to our initial sale of the First Homes property to you, may well be different at the time you (or any subsequent owner) wishes to sell the First Homes property.
  
  If you, or any subsequent First Homes property owner, wish to sell the First Homes property, then you must first notify the local authority (before advertising the First Homes property for sale), so that the local authority can confirm the National and Local Eligibility Criteria in place at that time, and confirm the marketing instructions and First Homes application process applicable to the sale of that First Homes property, which the seller and estate agents must comply with. The First Homes property must be actively marketed using the First Homes Eligibility Criteria (including both National and, if applicable, Local Eligibility Criteria) for 3 months, but if no buyer meeting the Local Eligibility Criteria during that period can be found, then the Local Eligibility Criteria ceases to apply, at which point the First Homes property can be marketed to first-time buyers that meet the balance of the First Homes Eligibility Criteria (see above) excluding the Local Eligibility Criteria.

1.10 Buyers that are an 'Armed Services Member', includes:-

• current members or former members (if purchasing First Homes within 5 years of leaving) of the Armed Services (comprising the Royal Air Force, the Royal Navy, the Royal Marines, or the British Army); or>

• a divorced or separated spouse/civil partner of a member of the Armed Services; or

• a spouse/civil partner of a deceased member of the Armed Services (if death is caused wholly or partly by their service;

and will be exempt from needing to meet any ‘local connection’ or ‘keyworker’ requirements set as Local Eligibility Criteria (if any) by the local authority, but must always meet all other First Homes Eligibility Criteria, including first-time buyer status and the joint gross annual income cap.

1.11 A ‘first-time buyer’ is defined in full in paragraph 6 of Schedule 6ZA of the Finance Act 2003 for the purposes of Stamp Duty Relief. Effectively all buyer(s) of a First Homes property must not currently, or previously have, (either alone or with others):

• had any mortgage finance or home purchase plan (also known as sharia mortgage finance); and/or

• acquired via purchase, gift, trust or inheritance a major interest in a dwelling or an equivalent interest in residential land, situated either in the UK or anywhere in the world, including any one or more of the following:
  
  - in England & Wales, any residential freehold, commonhold or long leasehold (for a term of 21 years or more, when granted) property;
  
  - in Scotland, any land which is recorded (or capable of being recorded) as a right of absolute ownership in the Land Register of Scotland or the General Register of Sasines in Scotland;
  
  - in Northern Ireland, any freehold or long leasehold (for a term of 21 years or more, when granted) property; or
  
  - anywhere outside the UK, any equivalent interest to those above, which is in respect of a dwelling (used or suitable for use as a dwelling or in the process of being constructed or adapted as a dwelling).

How does it work?

1.12 At legal completion of the initial sale of a First Homes property from us to you, you will:

• if your First Homes property is a house, and you are purchasing with a mortgage, you will have full ownership of the freehold of the Property; or

• if your First Homes property is a leasehold flat/apartment, have full ownership of the rights to occupy that leasehold flat/apartment for the Term, subject to compliance with the Plot Lease terms.

1.13 The First Homes Provisions setting out the constraints on the sale and use (during ownership) of a First Homes property are explained in the First Homes Customer Guide (available to read via the above web-link), but are protected and secured by:

• a legal agreement between us and the local authority known as a “Section 106 Agreement” which the local authority should register as a local land charge that binds each First Homes property (this will appear in any local or personal search undertaken by a buyer(s) before purchasing a First Homes Property). A copy of the First Homes Provisions from the Section 106 Agreement will be annexed to the Plot Transfer Deed or Plot Lease documenting the initial sale of the First Homes property from us to you; and

• a restriction in favour of the local authority, which will be registered against the title to your First Homes property at HM Land Registry (your conveyancer will be responsible for registering this at HM Land Registry, on legal completion of the initial plot sale from us to you).

This enables the local authority to ensure that First Homes properties are used and sold in compliance with the First Homes Provisions.

1.14 You, and any subsequent owner of a First Homes property, must during ownership of a First Homes property, comply with the First Homes Provisions which are explained in more detail in the First Homes Customer Guide, and must be explained to the buyer(s) via their legal advisors/conveyancers as part of the conveyancing process as instructed in the “First Homes Conveyancer Pack”, but includes the following:-

• you can decorate and upgrade/improve the First Homes property as you wish, provided that this is always in compliance with planning rules and building regulations, any leasehold restrictions (if applicable), the terms of the Plot Transfer Deed or Plot Lease, and the terms of your mortgage or home purchase plan;

• you may be allowed to let or sub-let your First Homes property in some circumstances, but only:
  
  - with the local authority’s prior notification (if letting or sub-letting for up to a maximum combined total of 2 years during each ownership period), or the local authority’s prior approval (if in certain exceptional circumstances, letting or sub-letting is to be for longer than a combined total of 2 years during each ownership period); and
  
  - in any event for any letting/sub-letting of any period of time, in compliance with (if permitted) the terms of your mortgage or home purchase plan, and with the prior consent of your mortgage lender or home-purchase plan provider; and
  
  - in any event for any letting/sub-letting of any period of time, in compliance with (if permitted) the terms of your Plot Transfer Deed or Plot Lease, and with any consent required under the terms of that Plot Transfer Deed or Plot Lease;

• lodgers are permitted, as long as the First Homes property remains your only home/main residence provided always that this is permitted by the terms of your mortgage or home purchase plan and the terms of the Plot Transfer Deed or Plot Lease;

• when ready to sell the First Homes property (both the initial plot sale and all subsequent sales), a First Homes property owner must:
  
  - first notify the local authority (before the property is advertised for sale or an estate agent is appointed)
  
  - arrange for a valuation of the First Homes property to be undertaken by a professional valuer registered with the Royal Institution of Chartered Surveyors (RICS). The First Homes property owner will need to pay for this RICS Valuation to be undertaken. This RICS valuation must then be given to the local authority evidencing the full open market value of the property, at that point in time;
  
  - ensure that the First Homes property price, when advertised for sale, reflects the open market value of the First Homes property minus the First Homes Discount. The First Homes Discount that applied at the initial sale of the First Homes property must apply to any future sale;
  
  - the First Homes property owner and their appointed estate agents must ensure that the First Homes property is only marketed and sold to buyer(s) that meet the First Homes Eligibility Criteria (see above) who have first been approved by the local authority (for the area in which the First Homes property is located) as meeting the First Homes Eligibility Criteria, and must be sold at the discounted purchase price, having applied the same First Homes Discount as was applied to the initial sale of the First Homes property from us to you.

1.15 The First Homes Provisions comprising the detailed terms and conditions applying to the use and sale of a First Homes property will be made available to the buyer(s) via their legal advisors/conveyancers as part of the “Conveyancer’s Pack” supplied by the local authority to the buyer(s) conveyancers, as part of the First Homes conveyancing process.

1.16 Any non-compliance/breach of the First Homes Provisions will constitute a breach of the legal obligations relating to the First Homes scheme which will carry serious consequences. Your legal advisors/conveyancers as part of the First Homes conveyancing process are (in the Conveyancer’s Pack) instructed to advise you/the First Homes buyer(s) of the First Homes Provisions explained in the First Homes scheme: first-time buyer's guide and the consequences of any breach of these First Homes Provisions during your ownership, so that you are clear on how the First Homes scheme works, before proceeding with your purchase.

What is the Application and Conveyancing process for this scheme?

Stage 1: Applying

1.17 Find your new home: search our website for available First Homes, by looking out for the “First Homes, getting you on the ladder, backed by HM Government” logo.

1.18 Get financial advice: Buying a new home can be a daunting process, but there are many organisations that offer free advice. We have a range of New Home Mortgage Advisers who can help you seek independent financial advice and make sure you qualify financially for this scheme.

1.19 Apply for & reserve your First Homes property: If there is a First Homes property that you would like to buy, we will initially check your eligibility against the First Homes Eligibility Criteria. If it looks like you could be eligible, we will:

• work with you to reserve a First Homes property. You will pay a £500 reservation fee, which is fully refundable if you are not approved by the local authority as being an ‘Eligible Purchaser’ for this First Homes scheme; and

• work with you and the New Homes Mortgage Adviser to complete a First Homes Application Pack applying to the local authority to approve your eligibility for a First Home. As part of the First Homes Application Pack process, you will need to:
  
  - sign the legal declarations, including confirmation that you and anyone you are buying with, are all ‘first-time buyers’ and meet the First Homes Eligibility Criteria including the National Eligibility Criteria and (if applicable) Local Eligibility Criteria set by the local authority for the area in which your First Homes property is located; and
  
  - obtain and provide a ‘decision in principle’ from your proposed mortgage lender or home purchase plan provider, evidencing that you are able to obtain a repayment mortgage or home purchase plan for at least 50% of the First Homes discounted purchase price; and
  
  - provide supporting personal and financial documentation evidencing that you and anyone you are buying with, meet the First Homes Eligibility Criteria including the National Eligibility Criteria and (if applicable) Local Eligibility Criteria, including (but not limited to) your joint gross annual income (for both you and anyone you are buying with), your current address or employment details, your proposed repayment mortgage or home purchase plan, deposit and any cash contribution details, the First Homes property details etc.
  
  The information you provide to us when completing the First Homes Application Pack must be accurate and true. False or misleading details will lead to delays and may put you at risk of fraud, which is a criminal offence.

We will send your signed First Homes Application Pack together with the supporting documentation you have supplied to evidence how you and anyone you are buying with, meets the First Homes Eligibility Criteria, to the relevant local authority for their consideration. Applications will not be considered by local authorities if you have not reserved a First Homes property or the First Homes Application Pack is incomplete or missing any information or signed declarations.

Stage 2: Authority to Proceed & Eligibility Approval

1.20 Application review: the local authority for the area in which your selected First Homes property is located, will review your First Homes Application Pack and supporting evidential documentation to ascertain whether you and anyone you are buying with, meet the First Homes Eligibility Criteria

1.21 Authority to Proceed & Eligibility Approval: If the local authority consider that you and anyone you are buying with, meet the First Homes Eligibility Criteria, then the local authority will issue you and your conveyancers with an Authority to Proceed (“ATP”) & Eligibility Approval, which is an initial confirmation that you are eligible to buy the First Homes property. This is valid for only 3 months. Exchange of contracts must take place within that 3 month period (extensions of time to an ATP need to be confirmed in writing by the local authority).

1.22 Apply for a mortgage/home purchase plan: once the local authority have issued the ATP & Eligibility Approval, you are then able to submit a full application for your repayment mortgage or home purchase plan. You will need to speak to a mortgage broker or directly to the mortgage lenders to apply for your repayment mortgage or home purchase plan.

1.23 Conveyancer Pack: At the same time as the local authority issue the ATP & Eligibility Approval, your conveyancer will also receive the ‘First Homes Conveyancer Pack’ from the local authority, comprising:-

• the local authority’s instructions to your conveyancer;

• the legal guidance your conveyancer will need to advise you on the detailed terms and conditions of a First Homes purchase and the First Homes Provisions regulating the use (during your ownership) and re-sale of a First Homes property (you can only sell the home in the future to another buyer that meets the First Homes Eligibility Criteria and must apply the same First Homes Discount as that which applied to the initial sale); and

• forms to complete as part of the First Homes conveyancing process.

Your conveyancer is responsible for explaining the legal information to you, and for ensuring that these forms are completed and returned to the local authority within the timeframes required, so that you can buy your selected First Homes property.

Stage 3: Mortgage offer & exchange of contracts

1.24 Your Conveyancer will:

• explain the First Homes contract, Plot Transfer Deed/Lease terms and the First Homes Provisions to you (as outlined in the First Homes Conveyancer Pack and the First Homes Customer Guide and ATP) to ensure that you understand your legal responsibilities during your ownership and on any sale of the First Homes property. Any breach of the First Homes Provisions will be a breach of the First Homes legal obligations which will carry serious consequences;

• remind you that your First Homes Application must be accurate and true. Providing false or misleading information could be fraud, which is a criminal offence;

• ask you to sign the First Homes sale contract, Plot Transfer Deed/Lease and to sign a further Legal Declaration to the local authority confirming that you and anyone you’re buying with, meets the First Homes Eligibility Criteria including the National Eligibility Criteria and (if applicable) Local Eligibility Criteria set by the local authority for the area in which your selected First Homes property is located, and all other First Homes Eligibility Criteria (see above);

• make sure your repayment mortgage offer or home purchase plan, property price and deposit (with any cash contribution) are the same amount as agreed in the Authority to Proceed & Eligibility Approval Certificate;

• having ensured that the purchase details accord with the local authority’s requirements, submit a legal Undertaking to the local authority, together with a certified copy of your mortgage lender’s professional valuation report or (where not available) mortgage offer (confirming the valuation, and valuing the First Homes property at a sum which is equal to the property’s Full Purchase Price (ie its full market value)) and asking the relevant local authority for permission to exchange contracts.

1.25 Authority to Exchange & Compliance Certificate: Your local authority will check all the paperwork submitted by your conveyancer and if satisfactory, will issue the Authority to Exchange (“ATE”) and Compliance Certificate to your conveyancer (copied to you) so that they can exchange contracts. Exchange of contracts must take place within 3 months of the ATP (unless the local authority have issued a written extension to your ATP). You must keep the Compliance Certificate in a safe place, as this is the document evidencing that you are entitled to be a First Homes property owner and confirming the First Homes Discount applicable on the initial sale of the First Homes property from us to you.

1.26 You will then be able to progress to:

• exchange of your First Homes contract. At this point you are legally bound to buy your new First Homes property by the legal completion date. You will pay a deposit (normally between 5 and 10% of the discounted purchase price) when you exchange contracts.  Any further cash contribution (in addition to the Deposit and mortgage funds) that you may have to put towards the discounted purchase price, is then paid at legal completion.. If for example you are using Help to Buy ISA or Lifetime ISA monies to fund the deposit, it is possible to exchange contracts with a lesser deposit and then the outstanding balance would form part of your cash contribution which is paid at legal completion. Your conveyancer must ensure that your First Homes purchase complies with the Help to Buy ISA or Lifetime ISA rules;

• make sure your repayment mortgage offer or home purchase plan does not expire before the completion date;

• visit your new home before you move in, we can arrange this for you. This will give you a chance to confirm any last-minute details. Speak to us for more information about home visits.

1.27 Exchange confirmation: Your conveyancer must notify the local authority (within 2 working days of exchange) that exchange has taken place, by completing and submitting to the local authority a 'Confirmation of Exchange Form'.

1.28 At least 5 working days before the anticipated legal completion date your conveyancer will provide the local authority with a signed and dated Certificate of Title document.

Stage 4: Completing your purchase

1.29 Legal completion: The anticipated legal completion date of your First Homes property ideally will be no longer than 6 months after the date of exchange of contracts. Legal completion will take place once your First Homes property is built and ready for occupation (which may sometimes be longer than 6 months after the date of exchange of contracts if there are delays for any reason), and in accordance with the terms of your First Homes plot Contract. At legal completion you pay the rest of your deposit (if any) together with any cash contribution, and your conveyancer will arrange to obtain from your mortgage lender or home purchase plan provider its share of the funds necessary to enable you to buy your new home. Once legal completion takes place, you will:

• get the keys and can move in to your First Homes property; and

• (if purchasing with a mortgage) you will legally own your new home (if a house) or you will own the rights to occupy your apartment for the Term (if a leasehold apartment); or

• (if purchasing with a home purchase plan), your conveyancer will explain the ownership structure to you.

1.30 Restriction registration: after legal completion has taken place, your conveyancer must ensure that a restriction in favour of the local authority, is registered at HM Land Registry and shown on your property title documents to protect the First Homes Provisions contained in the Section 106 Agreement regulating the use (during ownership) and sale of a First Homes property, which will continue to apply to all future sales of a First Homes property (subject to limited exceptions explained in the First Homes scheme: first-time buyer's guide). Your conveyancer must supply the local authority with a certified copy of the updated title registers evidencing that this restriction has been registered against the title to your First Homes property.

Any promoted Barratt London offer is subject to contract and status. Offers are on selected plots only and are subject to availability. The offers advertised cannot be used in conjunction with any other offer on the same plot unless expressly stated otherwise. Prices and details are correct at time of going to press. All images are typical of Barratt London homes and are for illustrative purposes only. Please contact the development in which you are interested for further details.

Barratt London reserve the right to withdraw or alter any of these offers at any time prior to the payment of a reservation fee. Contracts must be exchanged within 42 days of reservation of your property. Failure to do so may result in the loss of all or part of your reservation fee.

The current specific offers being advertised in relation to selected Barratt London developments are also subject to the specific terms and conditions set out above (N.B. these offers may vary from time to time and you should refer to the development in which you are interested to discover which offers are available on specific plots and developments).

Barratt London will not be liable for the refusal of a mortgage based on the borrower’s individual circumstances which leads to the loss of any reservation fee. Barratt London will not be responsible for the failure of any deal due to any defects in your existing property which arise as a result of an inspection or survey, whether a part exchange deal has been agreed or not. These terms and conditions do not affect your statutory rights.

Barratt London is a brand name of BDW Trading Limited (Registered Number 03018173) which is a subsidiary of Barratt Redrow plc (Registered Number 00604574) both with registered offices at Barratt House, Cartwright Way, Forest Business Park, Bardon Hill, Coalville, Leicestershire, LE67 1UF.

If you require a mortgage, you are strongly advised to obtain advice from a regulated adviser. Barratt London recommends from a panel of New Home Mortgage Advisers who have extensive knowledge of the new build mortgage market, though you may, of course, seek such advice from your own mortgage adviser.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT