First-Time Buyer Incentive Launched At Old Kent Road Site

Developer Avanton has just launched London @ Last, a unique triple-boost incentive for first-time buyers to help secure a dream home off-plan at a major development in the south-east of the capital.

Ruby Triangle will deliver over 1,400 homes on a five-acre site in the regeneration area of Old Kent Road: sales have launched off-plan for the first scheme THE BeCa, a £150million Manhattan-style tower, and Phase 2 homes will launch Spring 2024, offering 350 further off-plan homes.

With the London @ Last scheme, firstly, properties can be reserved with a £500 reservation fee, with 15 working days for a finance affordability review. Buyers then reserve on a 5% conditional exchange. The money will be held with Avanton’s lawyers and if at any point the buyer’s situation changes, they will be returned the deposit plus their initial £500 reservation fee. The developer will make interest payments on the deposit of 10% annually to be paid upon completion, so the buyer’s money works for them whilst they wait, comparable to keeping it in a high interest savings account.

The second boost is a 5% deposit contribution from Avanton for any purchases at asking price. Together with the buyer’s 5% deposit, this means they are eligible for loan-to-value 90% mortgage deals. The developer will cover the legal fees if the buyer uses their recommended solicitor.

The third boost, a unique offering in today’s market, is Avanton will guarantee a 4.99% interest-only mortgage rate for one year. The combined triple boost savings can be up to £40,000 depending on the home chosen. The conditional exchange offers security and can help alleviate some anxiety for first-time buyers should their circumstances change.

As an example, for a £450,000 apartment being reserved two years ahead of completion, a buyer would pay £22,500 for their 5% deposit. The 10% annual interest on this deposit would be £4,500, to be paid upon completion. This gives a combined £27,000 deposit from the buyer. Secondly, Avanton will contribute a further £22,500 (5% deposit) plus legal fees, an average of £1,500 value. Thirdly, the developer will guarantee a 4.99% interest-only mortgage rate for one year. This all combines for a total saving of £30,000 and mortgage payments of £1,665pcm. This is highly competitive compared to the local average rent which can be in excess of £3,000pcm for a one-bedroom apartment in Elephant & Castle.

Inspired by Manhattan’s iconic Tribeca neighbourhood and with architecture by award-winning Farrells, THE BeCa is an 18-storey red brick tower providing 170 private sale apartments, a mixture of studios, one- and two-bedroom apartments alongside landscaped public realm, gym, co-working space and games room. THE BeCa marketing suite will open in the new year to showcase the high-quality specification and design-led homes available.

Research from a leading global agent shows the typical domestic buyer doesn’t tend to reserve new build properties until closer to completion, with over 50% of UK buyers reserving up to six months before completion compared to 65% of international buyers reserving more than 24 months from completion. The majority of owner-occupiers also reserve up to six months out, whilst over 70% of investment purchases reserve 24+ months from completion.

Appointed agents Knight Frank explain the barriers to domestic off-plan reservations include uncertainty in mortgage availability, a high percentage of deposit required, inability to access their money if circumstances change, the need to see and experience the real product and the idea that their money doesn’t work for them whilst they wait.

David Ronson, sales & marketing director of Avanton, said: “Avanton aspires to build homes for Londoners. Hard working Londoners should be able to afford a home within a 20-30 minute commute from all major employment hubs, with the quality that Avanton stands for. We have decided to launch this offer across our portfolio, only to support the domestic purchasers who have been losing out to international investors since the government discontinued the Help to Buy programme. Since launching THE BeCa in the summer we have sold over 25% of the homes off-plan and we are aiming to sell more homes in London going forward.”

Each home at THE BeCa will benefit from a high specification with fully integrated European appliances, thoughtful design to maximise light and flexibility of space. To the bathrooms, red tiling will recall the tower’s striking red brick design, whilst raw concrete and exposed brick detailing will help make industrial statements throughout the homes. The development is looking to achieve BREEAM “Excellent”. Every home will have a private balcony as well as access to three landscaped rooftop gardens offering panoramic views over the London skyline.

Borough station is 15 minutes away by bike, and South Bermondsey is 15 minutes on foot. The proposed Bakerloo Line extension would see one of the two new stations right by the Ruby Triangle masterplan, perfect for residents. Prices start from £450,000 for a one-bedroom and £585,000 for a two-bedroom apartment. Find out more at thebeca.co.uk.

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