Buying your first home can be a bit of a minefield. From terminology to hidden costs, there’s a lot to get your head around.
In this blog, we’re delving into the expenses you can expect as a first-time buyer. This will give you an idea of how much you need to save alongside your deposit to purchase a Pocket home.
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An Income Boost is a little-known guarantor mortgage scheme that lets someone close to you – like a parent, sibling, or even a friend – help your application without giving (or lending) you money. Their income gets added to yours, so you can borrow more without upping your deposit. That extra boost could be the difference between “almost there” and “keys in hand.”
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Getting on the property ladder can feel like a daunting task for first-time buyers. With the average time to save a house deposit nearing 10 years (18 years in London), homeownership might sometimes feel out of reach. But with a Deposit Boost, you could make your dream of owning a home a reality sooner than you think.
A Deposit Boost is a type of buying scheme that allows loved ones like parents or grandparents to help give you a leg up on the property ladder, without needing to dip into their cash savings, investments, or pensions. Here’s how it works, some key benefits, and considerations to help you decide if it’s the right option for you.
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If you’re a first time buyer interested in learning about service charge, read on.
Read MoreThe UK government’s new Commonhold White Paper could mark a major shift in homeownership, aiming to replace the current leasehold system with the commonhold model. But what does this actually mean for flat owners and buyers? In this guide, we break down the key differences between leasehold and commonhold, what the proposed changes involve, and how they could impact future homeowners – including those buying Pocket homes.
A leasehold is a common form of home ownership in the UK, where you buy the right to occupy a property for a set period of time. It’s typically used for flats or homes in shared buildings, where the land itself is owned by a freeholder (more on them in a bit).
Lease lengths vary, and properties with fewer than 80 years left on the lease are unlikely to qualify for a mortgage. To sell or remortgage, the lease would likely need to be extended. Thanks to the Leasehold and Freehold Reform Act 2024, new lease extensions now typically last 990 years.
Leasehold properties can be bought and sold on the open market, just like freehold homes. However, with all leasehold properties, there is an underlying freehold, owned by the freeholder – the person or company that owns the land the building sits on.
For older leasehold properties, leaseholders often pay ground rent to the freeholder – a fee that usually increases every 5-10 years. However, since the Leasehold Reform (Ground Rent) Act 2022, new leasehold homes now come with a peppercorn ground rent – a nominal fee, often just £1.
Leaseholders also pay a service charge towards the upkeep and maintenance of the building and communal areas. This covers things like:
Part of the service charge often goes into a reserve fund to cover future major works on the building.
(Just to clarify: this refers to long leasehold properties, which is different from a short-term tenancy agreement that most renters sign.)
With commonhold, owners own the freehold of their individual unit.
As a commonhold owner, you would jointly own and be responsible for the communal areas, along with the other unit owners, through a commonhold association. This means contributing to the maintenance and upkeep costs, similar to how leaseholders pay a service charge. The commonhold association determines how much these costs will be, in line with legal requirements for residential buildings.
Some commonhold associations may choose to hire an external building manager, with the costs shared by the unit owners.
One key difference? No ground rent – commonhold owners own the freehold of their unit, so there’s no need to pay it. This is also true for newer leasehold homes, thanks to the 2022 ground rent reforms.
As it’s still early days, the government hasn’t yet outlined the full requirements that developers and landlords will need to follow once the legislation comes into force. So, we don’t know exactly how this will affect new-build homes going forward.
Once the law is in place, developers will need to comply with the new rules. However, given the scale of these changes, it’s likely to take several years before they are fully implemented.
Yes – all Pocket homes for sale are currently leasehold properties. Lease lengths vary across our developments, ranging from 125 years to 999 years.
Each Pocket development has a Residents Management Company (RMC), made up of all the owners. Once all residents have moved in, the RMC takes over responsibility for managing the communal areas – similar to how a commonhold association would operate.
The RMC also has a say in what is included in the service charge and works with external building managers to oversee the running of the common areas.
There are also some benefits to the leasehold system. For example, managing agents can enforce regulations that benefit all residents – such as preventing noise disturbances, which helps keep the peace for everyone.
Our new Charlton development, The Heights SE7, is ideally located in the heart of the Royal Borough of Greenwich, making it the perfect base to explore the area’s diverse surroundings. 45 one-bedrooms and 3 two-bedrooms homes are now available to first time buyers across all London boroughs. To celebrate this milestone, we’ll highlight the top attractions in the local area.
Where to start? Well, it is the start of time, so a stop at the Royal Observatory is a no-brainer. From there, you can wander to the National Maritime Museum, the Queen’s House, and the vast greenery of Greenwich Park. Don’t forget Greenwich Market, where the world comes to you! Think Thai food, Nepali cashmere, and South American coffee. If tea’s more your vibe, the Cutty Sark (a famous tea clipper) is just a two-minute stroll away. It’s free to admire from the outside, though you’ll need to pay for a tour inside.
Getting there: A 20-minute cycle or 177 bus from The Heights SE7 development.
Charlton’s architecture is a mix of styles that all bring something unique to the table. Take Charlton House, an impressive Jacobethan manor house that hosts changing exhibitions, inspiring interiors, and events throughout the year. On the ground floor, you’ll find Frilly’s Tea Room, plus the Old Cottage Shop Café tucked away in Charlton Park.
Getting there: Just a 10-minute walk from The Heights SE7 development.
It’s been a quarter of a century since the Millennium Dome (as it was called back then) made its mark on the London skyline. Today, the site is home to the iconic O2 Arena, the more intimate Indigo at the O2, a designer outlet mall, a cinema, and plenty of restaurants and bars. North Greenwich Station, right next door, connects you to the Jubilee line, whisking you to London Bridge in just 7 minutes.
If you’d rather stay above ground, you can climb to the top of the O2 for a thrill or take a cable car across the Thames, both offering stunning views of Canary Wharf and beyond.
Getting there: A 15-minute cycle or a 422/486 bus from The Heights SE7 development.
Stretching about a mile along Bugsby’s Way, the retail parks here offer a wide range of shopping and leisure options, just a 10-minute walk from The Heights SE7.
While it’s not as independent as nearby Charlton Village or Greenwich town, you’ll find all the essentials for setting up home. Need furniture? Ikea, Next, and Home Sense have you covered. For food shopping, you’ve got M&S, Sainsbury’s, Aldi, and Lidl. Feeling adventurous with DIY? B&Q’s the place to go.
And if you’re after a bite to eat or a movie, you’ll find plenty of restaurants and an Odeon cinema nearby.
Getting there: Just a 10-minute walk from The Heights SE7 development.
Much of Charlton falls within the ‘Charlton Village Conservation Area,’ with its commercial heart stretching east from Charlton House along the aptly named street, ‘The Village.’ Here, you’ll find The Village Greengrocers, offering a great selection of health foods and organic produce, while ‘The Bugle Horn’ is a popular pub set in a Grade II listed building. For pampered pets, head to ‘Top Paws Grooming Salon.’ Other handy services along the parade include a pharmacy, hair and beauty shops, and international food stores.
Getting there: Just a 5-minute walk from The Heights SE7 development.
Offering an Olympic-size heated pool, gym, café, and sunbathing space, there’s something for everyone at Charlton Lido and Lifestyle Club. Its enduring appeal has kept it in the area since 1939. It may seem hard to imagine swimming outdoors in winter, but the pool is heated to 25°C, and in warmer months, there are sunbathing areas to soak up the rays.
Getting there: An 18-minute walk from The Heights SE7 development.
Perched on the highest point in South London, Severndroog Castle offers panoramic views of the area. Look north and west, and you’ll see the urban sprawl of Canary Wharf blending with the historic heart of Central London. On clear days, you might even spot the iconic arch of Wembley or planes descending into Heathrow. To the south, the green expanses of Oxleas Woods and Eltham offer a peaceful contrast. The Grade II-listed Gothic castle itself, built in 1784, features turrets and ornate ceilings. Take in the views from the viewing deck, relax in the tearoom, or explore the surrounding Oxleas Woods. On the first Sunday of every month, a popular farmers’ market offers local arts and crafts, baked goods, and delicious food.
Severndroog Castle Viewing Platform and Galleries opening times: Sunday – 10:00am – 4:00pm (last entry 3:45pm)
Getting there: A 10-minute cycle or 486 bus from The Heights SE7 development.
Just a short journey east from Charlton, Woolwich boasts fascinating naval and military history and some impressive architecture. From the new Elizabeth line station (only 14 minutes to London Liverpool Street), head towards the river and explore the pedestrianized Royal Arsenal area, home to an array of eateries and a farmers’ market on the second and last Saturday of each month. ‘Woolwich Works’ is an important cultural hub where you can join dance classes, watch comedy, play chess, or relax with a hot drink at the on-site café. At ‘Punchdrunk,’ enjoy a unique theatre experience where you’re free to roam the performance spaces – you’ll likely see something new each time you visit.
Getting there: A 15-minute cycle, multiple buses, or an overground train from The Heights SE7 development.
Around 20% of the Greenwich borough is made up of green space, and Plumstead Common offers a peaceful retreat in the heart of the bustling Plumstead community. The common features a nature reserve, gentle slopes, lakes at ‘The Slades,’ and outdoor gym equipment. Just off the common, ‘The Slade Café’ offers a quirky spot for brunch – set in a converted 1930s public toilet. ‘The Plumstead Pantry’ is another beloved local fixture.
Getting there: A 15-minute cycle from The Heights SE7 development or the 53 bus.
It’s an exciting time for the borough. The Elizabeth line has recently joined the Jubilee line, DLR, overground, boat, and London’s only cable car. The opening of the Silvertown Tunnel in April 2025 will also provide free bus journeys across the Thames for those who’ve lived in the Greenwich borough for at least 12 months and offer a free shuttle bus for cyclists through the tunnel.
The Heights SE7 consists of 45 one-bedroom Pocket flats (two of which are wheelchair adaptable) and 3 two-bedroom Pocket flats. Just a 5-minute walk from Charlton Station, it’s perfectly placed for transport links – making it easy to explore Greenwich or head to the city.
Pocket offers discounted homes exclusively for locals, giving them the chance to own a piece of the city they love. Our homes are unique, we sell them at a 20% discount compared to other one-bedroom flats in the area. Pocket is an alternative to shared ownership—no rent, and you own 100% of your home from day one.
Ah, the start of a new year – the perfect excuse for a fresh start, a new diary, and a long list of overly ambitious new year’s resolutions. But if 2024 is the year you’ve decided to trade in your rented digs for a place to call your own, we’ve got some realistic, first time buyer specific new year’s resolutions to help you get there. And don’t worry, these won’t involve kale smoothies or 5 a.m. wake up calls – just a bit of planning, saving, and savvy decision making.
Unfortunately, a home deposit doesn’t just appear magically. Work out how much you’ll need to save by your target move in date, and divide it by the number of months you’ve got until then. Then set up an automatic transfer to a savings account, preferably one with good interest. You could also consider a LISA to boost your savings. Tip: treat this as a non-negotiable bill, not something you’ll ‘get around to later.’
Your credit score is like your financial CV – make sure it’s on top form. Use a free credit report tool to check your score and look out for any errors. If it’s not quite where you’d like it to be, don’t panic. There are often small changes you can make which could make a big difference when it’s time to apply for a mortgage. Tip: We often work with Censeo Financial, an Independent Mortgage Advisor, and they recommend CheckMyFile to get a comprehensive view of your credit report.
If you’re serious about buying a home (and let’s face it, you wouldn’t be reading this otherwise), your next step is to see what’s realistically within your reach. Complete an affordability assessment for the Pocket scheme you like the look of to find out what kind of mortgage you could qualify for.
Not every property will tick all the boxes. Start by identifying your top five must-haves (e.g., a location close to work or wfh space) and your deal-breakers (e.g., no outside space or too far from public transport). This will keep you focused during viewings and help you make confident decisions when the right property pops up.
Even if you’re moving into a brand-new Pocket home, life’s little surprises don’t stop once you get the keys. Whether it’s unexpected repair costs or just making sure you’re not eating beans on toast every night after moving in, having a rainy-day fund will give you peace of mind. Aim for three to six months of essential expenses tucked away in an easy-access account.
Once you’ve got your finances and priorities in order, it’s time to take the next step: booking a viewing. With Pocket Living, you’ll get access to affordable, beautifully designed homes that are built specifically for London’s first time buyers. And who knows? Your perfect home might be waiting for you just around the corner.
Buying your first home doesn’t have to be overwhelming. With the right new year’s resolutions (and a bit of determination), you’ll be well on your way to unlocking the front door to your own place in 2025. So why not start now? Create your My Pocket account, complete your affordability assessment, and make this the year you leave renting behind for good.
Happy new year!
So, you’ve got a compact balcony, a small garden, or a dainty garden plot, and you’re determined to turn it into a lush, green paradise? You’ll be happy to find that a small space doesn’t mean you have to settle for a tiny garden. With a bit of creativity and some hacks, you can create a beautiful, blooming haven right in your little corner of the world.
When space is tight, reach for the sky! Install wall planters, hanging baskets, or vertical shelves to show off your greenery. And, use trellises or lattice panels to let climbing plants like beans and cucumbers make their way up.
Maximise your space by choosing multi-functional furniture. A bench with hidden storage is perfect for stashing tools and soil, while doubling as a comfy seat. Go for tables that double as planters or get creative with stackable pots. Every bit of space counts, so make sure your furniture is working double time!
Mirrors aren’t just for checking your outfit—they can make your space look bigger too! Hang a mirror on one wall to reflect light and create the illusion of a larger space. It’s like a magic trick for your garden, giving your plants more room to shine.
Not all plants are created equal, especially in the world of small-space gardening. Opt for compact or dwarf varieties that fit well in small containers. Herbs like basil and mint, or small veggies like cherry tomatoes and radishes, are perfect for tiny gardens. And, succulents and cacti are great for adding a touch of green without taking up too much room!
Sometimes, less is more. Focus on a few key plants or a small garden design to avoid overcrowding. A well-thought-out garden with a limited number of plants often looks more polished and manageable than one crammed with everything you can find.
So there you have it—five tips to transform your small space into a garden that’s bursting with life and style. Happy gardening!
Following Labour’s landslide election victory earlier this month, we break down what the election of Labour means for first time buyers and whether there is reason for hope over the next four years.
A misconception that is often made is that a government has the power to cut or raise interest rates. This is not true. This power is in the hands of the Bank of England which is independent to the government.
However, the long-term economic forecast suggests there may be a cut in interest rates at the end of the summer. Given the continued fall in inflation and the economic stability a new government offers, things are looking promising for a cut from the 16 year high of 5.25%.
Labour’s manifesto promise is to help more than 80,000 young people onto the housing ladder over the next five years. To do this they have promised a mortgage guarantee scheme coined ‘A Freedom to Buy’.
What does this mean? In simple terms, the scheme would support first time buyers by providing a guarantee for part of your mortgage, meaning you will not need as big of a deposit when buying a new home. This is likely to replace the current mortgage guarantee scheme which is expiring in 2025.
Currently, first time buyers pay no Stamp duty land tax on properties worth up to £425,000. On any property purchase price of up to £625,000, you will pay no Stamp Duty on the first £425,000. After this first-time buyers will pay 5% on the remaining amount, up to £200,000.
This threshold commitment was made by the conservatives and will run at least until April 2025. However, labour are reviewing this position and may bring the threshold down from £425,000 to £300,000.
Although this is not official yet it’s worth bearing this in mind if you are thinking about purchasing a home in the next 12 months.
Labour has no intention of bringing back help to buy.
Labour have also promised that they will support first time buyers by giving them first dibs on homes in new developments. Labour is yet to provide any further information on how this system will work but expect announcements over the next couple of weeks.
Pocket offers affordable discounted homes exclusively for local city-makers, providing an opportunity for those on moderate incomes to get their foot on the property ladder and own a piece of the city they love. Our homes are unique and we sell our homes to first time buyers at a discount of at least 20% to other one-bedroom flats in the area. Pocket is an alternative to shared ownership, there is no rent payable on these homes, and you will own 100% from day one.
Buying your first home is exciting but can be daunting when you’re confronted with a whole new world of terminology. From “fixed-rate mortgage” to “EPCs” – the jargon can be overwhelming. Zoopla even found that a “lack of knowledge” is preventing millions from owning their own home, and it’s about time that changed! So here’s your easy-to-read dictionary and go-to guide for understanding all the terms you’ll need to know on your homebuying journey.
If you are purchasing a home before the building is ready, this is the date by which the developer expects the building to be ready for occupation and for you to be able to complete.
If you purchase a flat, this will be arranged by the managing agent or freeholder and covers the structure of the property against events such as flood. You will pay for it via your service charge. If you purchase a house, you will arrange your own buildings insurance.
The day of completion is the day you get your keys! On this day your solicitor sends your completion funds (which will mainly consist of your deposit plus your mortgage funds, which they will have drawn down from your lender in advance) to the seller’s solicitor. Once these funds reach the seller’s solicitor, the keys can be released to you.
This sets out how much money you will need to transfer to your solicitor (and from your solicitor this will be transferred to the seller’s solicitor) to allow you to complete. It is prepared by the seller’s solicitor and includes figures such as the purchase price, service charge and mortgage funds.
The contract sets the terms of your purchase and you will sign this and return it to your solicitor just prior to exchange of contracts. The seller will also sign an identical contract prior to exchange of contracts.
Recommended whether you purchase a flat or a house, this protects your possessions within your home.
Your deposit is sent to your solicitor upon exchange of contracts and will be 10% of the purchase price as standard. If your deposit is going to be more than 10%, you’ll send the remaining balance to your solicitor in time for completion.
If you are buying a new-build home, you will have a two-year defects period from the date of your completion. During this period, the developer or contractor will arrange for any defects (items which are not working as they should) to be rectified.
An EPC rates a property according to its energy efficiency and contains recommendations about how to improve efficiency. If you are purchasing a home which isn’t built yet, this will be available at completion (prior to completion, a Predicted Energy Assessment (PEA) will usually be available).
An engrossed document (this might be the contract or the lease) contains your details and is the version which is signed, as opposed to a draft version.
Detailed questions and requests for information about the property which are requested by your solicitor and answered by the seller’s solicitor before exchange of contracts. These may include questions which you have asked your solicitor to answer.
Exchange of contracts (also just known as exchange) takes place when your solicitor holds your signed contract and your exchange deposit, and the seller’s solicitor holds the seller’s signed contract. The two solicitors will speak on the phone and agree the exchange and after this point, both sides are legally bound to the sale.
If you own a freehold property, you own the property and the land on which it stands. As a general rule, houses are freehold and flats are leasehold in England.
Newly built leasehold homes typically have a nominal ground rent of just a peppercorn/£1 payable annually to the freeholder.
If you are buying a new build home, it will come with a 10-year Home Warranty. This usually continues to protect the home by insurance cover until 10 years after completion, and will usually include items such as foundations, walls and roofs.
An independent IMA or IFA has access to the whole mortgage market and so can recommend the best product for you (as opposed to if you were to visit a bank branch, you vwould only be offered products by that bank) and progresses your mortgage application through to the issuing of your mortgage offer.
A registry of the ownership of land and property in England and Wales. Once you have completed on your property, your solicitor will register it in your name at the Land Registry.
The lease sets the terms for living in your home and this will be for a set number of years. It also sets out the rights you are entitled to as a leaseholder and what you can expect from the freeholder and your neighbours (as they will also have signed a lease). If anything is unclear to you in your lease, you should ask your solicitor to explain it. Lease extensions can be agreed with the freeholder for a premium, after you have owned your home for two years.
If you own a leasehold home, you own the right to occupy the home for the number of years set out by the lease, but you don’t own the land your property occupies. In England, flats are usually leasehold as a number of flats occupy one piece of land. There will be a freeholder who owns the building itself and the land it is built on.
If you are buying your home before it is built and have exchanged contracts, this is the date after which if the home is not ready for occupation, you can walk away from your purchase and have your exchange deposit returned to you.
Your LTV is the percentage of mortgage you are taking out in relation to how much the property is worth. The percentage of your property which is not covered by your mortgage will need to be covered by your deposit. For example, if you were to purchase a property valued at £300,000 and did so with a mortgage of £255,000 and deposit of £45,000, your LTV would be 85%. The maximum LTV available will vary between property types and mortgage lenders.
If you are purchasing a flat, the managing agent is appointed to manage the building and communal areas day to day. The managing agent usually arranges the buildings insurance, and you will pay your service charge to them.
As part of your purchase, you may also become a member of the Residents’ Management Company, particularly if you are purchasing a flat. This is a non-profit company which gives members more say in the way in which the building is run. Some members may volunteer to become directors of the RMC. A managing agent will usually be appointed to carry out the day-to-day running of the building.
The MOS will be issued by the seller or their appointed agent once you have agreed your purchase and outlines the details of the sale including details of all parties, figures, and any conditions of sale. If you are purchasing a new build property, this might be in the form of a reservation form instead, which both you and the seller will sign.
The loan you take out to purchase your new home, which will come from a bank or building society and be secured against your home.
A mortgage valuation or survey is undertaken by your lender to check that the property is not being sold for more than it’s worth. Arrangements for this to take place will usually be made by the seller or their agent, and your mortgage offer will not be issued until it has taken place.
PC is a legal stage in the building process, at which point the building is ready for occupation and all of the paperwork is in place to allow you to complete your purchase (if you are buying a new build home). If you have exchanged contracts, once PC is achieved then notice to complete will be served to your solicitor, which will set your completion date.
An amount of money from your service charge payments is sometimes set aside by the managing agent to build up a fund to cover the cost of unusual and/or expensive works to the building such as external decorating or repairs. This aims to prevent leaseholders having to pay for significant one-off expenses in the future.
Your solicitor will carry out a local search and a flood search on your behalf: the local authority search covers any charges or restrictions relating to the land or the property, road/railway issues and environmental factors, whilst the flood search assesses the risk to the property from all the main types of flooding. If you are buying a new build home, the developer may provide these searches to all purchasers as this helps to speed the process up.
Your service charge will cover the day-to day management, repair, and ongoing maintenance of your building and communal areas. It will also cover your buildings insurance if you are buying a flat, and a portion of it may be set aside to build a reserve fund / sinking fund.
You should appoint a solicitor to act for you in the purchase of your home. Your solicitor will deal with all the legal aspects of your transaction including reviewing the legal pack, reviewing searches, reporting to you, liaising with your mortgage lender, handling Stamp Duty Land Tax, and registering your property in your name at the Land Registry.
A tax payable by the buyer of a property, although first time buyers receive some exemptions. Your solicitor will handle your SDLT payment for you.
The title register is registered at the Land Registry and shows important information about the property, such as the names of the legal owners, whether it is leasehold or freehold and whether there are any mortgages or rights of way which affect it. It will usually also include a title plan.
Visit pocketliving.com and get started on your homeownership journey today. By creating your My Pocket account, you can explore the range of 20% discount, 100% ownership homes tailored for you.