Help to avoid catch 22 deposit trap

Show apartment at Peninsula
Show apartment at Peninsula
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An innovative scheme at Sheffield’s Peninsula apartments development means that a deposit of just 4% of the purchase price is needed to take the first step on to the property ladder.

For many would-be homebuyers, the size of the deposit required to secure a new home is preventing them buying their first home. Lenders typically are asking for deposits of between 10% and 25% which makes it impossible for many young single people and couples to fulfil their dream of home ownership.

“The problem is that on apartments – often the most affordable of starter homes – lenders are asking for the biggest deposits,” says Phil Hill of property company S Harrison Developments. “It’s a real catch 22 situation.”

S Harrison, developers of the Peninsula apartments at Cross Bedford Street in the city, have teamed up with mortgage advisors Eastwood and Company in an innovative shared-equity scheme which means that first-time buyers may be required to provide as little as 4% of the asking price to buy their first home at Peninsula. Prices for studio apartments start at £70,000.

“Obviously,” said Eastwood and Company’s Stephen Rennie, “we have to look at the individual circumstances of each applicant and we’ll tailor packages to suit. For many this is the ideal route to home ownership in a very desirable development close to the heart of the city.”

Peninsula has proved popular with homebuyers in the city, with its good design, quality internal specification and excellent location. There is a small selection of apartments still available – studio apartments from £70,000, one-beds from £85,000 and two-bedroom apartments from £115,000 – with no stamp duty to pay on many of the units.

Phil Hill said: “The market is picking up but we want to give every help we can to first-time buyers and we believe this scheme with Eastwood and Company will provide the step up that many need.”

A new show apartment is now open every Saturday between noon and 4pm. Viewings at other times can be arranged through leading city agent Saxton Mee on 0114 266 8365.

More details of the scheme are available by contacting Eastwood and Company on 0114 231 9830.