Ways to Fund Your Leicester Property Purchase
If you’re new to the property market or are simply seeking out your next great Leicester property investment, you may be thinking about how you’re going to pay for what will almost certainly be one of the biggest purchases of your life. If this is the case, take a look at some of the options you may have when it comes to paying for your first or next Leicester property purchase.
This is a simple way of purchasing property and will make you a very attractive proposition for many vendors, giving you plenty of scope for negotiating a great price for the property of your choice.
This may be a great option for you if: you have money in the bank from a previous property sale, if you have released equity from one of your other properties, if you are downsizing and find you have enough equity from the sale of your previous or have benefited from an inheritance or another windfall payment.
The advantages of a cash purchase are:
– The property will be owned outright by you.
-You won’t have to pay extra costs for interest or loan arrangements, for example.
-You can buy properties that are not eligible for a mortgage.
-You won’t have to ask a lender’s permission to make changes to your property.
-Buying a property should be a faster process.
-Interest rate changes won’t affect you.
A mortgage will allow you to spread out the cost of your property purchase and may allow you to buy a property that you simply wouldn’t be able to afford if you were just paying in cash.
Family and Friends
Family or friends may be able to help you take your first step on the Leicester property ladder. It may be that a loved one or trusted friend could lend you some or all of a deposit, for example, or act as a guarantor on your mortgage.
You could also consider co-buying, meaning you buy your chosen Leicester property with friends, a sibling or a partner. This will enable you to split the deposit and the overall financial commitment of getting on the property ladder.
The Lifetime ISA scheme allows you to save as much as £4,000 each year towards paying for your first home, and the government will then add an extra 25 per cent of this amount as a bonus. This means that if you save £4,000 a year, you will be eligible for a tax-free boost of £1,000 in that year.
The downside is that the scheme can only be used if you are aged from 18 to 39. If you can start a Lifetime ISA in this period, you can then keep paying in until you reach 50.
Are you looking to buy property in Leicester? Why not call us today at our office at Hinckley Road 01162 544 555, or Queens Road 01162 544 543? A member of our property team will be able to discuss your options and help get you moving.