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Differences Between Help to Buy and CrowdToLive®

CrowdToLive® and Help To Buy are two different schemes that assist you in purchasing a property, but do so in very different ways.

Help To Buy is ending on the 31st March 2021 (extended to 31st May but only to allow existing applications to be completed) and being replaced by a first-time buyers only version – it is a popular program introduced by the government to help those struggling to get on the property ladder. They do this by allowing you to secure ownership of a property with just a 5% deposit and offer you an equity loan that will be interest-free for 5 years. Taking part in the Help To Buy scheme means that you will be subject to mortgage and interest payments, as well as running up debt.

Helptobuy comparison tobuy-comparison

Help to Buy is ending for all but first-time buyers, we have the perfect alternative for everyone – CrowdToLive®

CrowdToLive® is looking to eradicate these issues from the process of becoming a homeowner, hoping to make it a quicker, easier and more flexible experience.

CrowdToLive® is a brand new, innovative scheme that has transformed the housing market from the perspective of both homeowners and property investors. Similar to the Help To Buy program, this unique concept also allows potential homeowners to secure a property for a minimum of 5% of the purchase cost, or £10,000 if the property cost falls below £200k, but instead of loaning them the remainder, it is sold to a group of investors. You then pay rent on the percentage of the property that you do not own, which is where the investors will earn their dividends.

Read on to discover just how different CrowdToLive® is to the government’s Help To Buy scheme.

No mortgages, debts or interest

One of the main differences between CrowdToLive® and the government’s Help to Buy scheme is that CrowdToLive® will not cause you to go into debt or require you to pay mortgages or interest, which could be a real benefit to first-time buyers.

The CrowdToLive® scheme allows you to own your own property with a minimum initial purchase of 5% of the purchase cost or £10,000 if the property cost falls below £200k. This is similar to how the Help To Buy scheme assists first-time buyers secure their property with a 5% deposit. However, CrowdToLive® does not include an equity loan that must be repaid.

The way in which CrowdToLive® works means that your house will be fully paid for; partly by you and partly by a group of investors. How much of the property you want to own is up to you, as long as it is at least 5% or £10,000 if the property cost falls below £200k. This means that you won’t have to deal with any mortgages, loans or interest rates that you would if you were part of the Help To Buy Scheme as your property is still fully-owned.

Flexible purchase

Buying a property through CrowdToLive® means that you can be flexible with how much you want to buy.

You can purchase a minimum of 5% of the purchase cost, or the equivalent of £10,000 if the property cost falls below £200k, then the other 95%, or whatever the balance in your situation is, will be owned by a pool of investors. You will pay rent on the part of the property that you do not own, which will go to the investors. It is up to you how much of the property you wish to own. If you are looking to reduce your rental rates, you can simply buy a larger share of the property so you no longer need to pay rent for that amount.

If you become a CrowdToLive® Champion, the amount that you own and pay is completely up to you, depending on your preferences and your situation.

You even have a clause in the agreement that allows you to purchase a larger proportion of your home at a later date if you choose to.

Help to Buy

No limits on property purchase

Being a CrowdToLive® Champion does not only allow you to be flexible on how much you want to purchase but it is also flexible on which properties you can buy compared to the government’s HelpToBuy scheme.

The Government scheme may also limit potential homeowners into only being able to purchase certain new-build properties. 

In terms of a long-term investment, new-build properties can be an issue. The Financial Conduct Authority (FCA) has previously warned Help To Buy Equity Loan users that they may well be faced with negative equity if property prices see a decrease, due to up to 20% of premium buyers buying these brand new homes at a cheaper price. This means that unless the price rise of local homes outpaces this, owners of new-build properties are likely to end up selling their home for a lower amount than they paid originally.

CrowdToLive® does not limit you to certain property types, allowing you to be able to purchase the home of your dreams as part of a unique and flexible scheme. However, we can not accept the following:

  • Auction, HMO, Off-Plan or Retirement Properties
  • Properties which are part of the following schemes: Shared Ownership, Help to buy or Over 60s housing scheme
  • Leasehold properties

Help and guidance throughout

Buying a house can be a complicated, stressful and lonely experience, especially for first-time buyers. Going through a new experience not knowing what you are doing, spending a lot of money and knowing that you are running up the debt of a lifetime can be more than a little bit stressful, so we are here to help you through the tough bits.

CrowdToLive® acknowledges this and strives to offer help every step of the way throughout your property purchasing journey. We understand that this is a unique program and a new concept to most people, so we are here to guide you whenever you may need it.

CrowdToLive® promises to be there to help you find your perfect home and guide you through this unique buying process. We will also be there to arrange the home-buying partnership that you are going to form with the pool of investors that co-own your property.

We hope that this post has taught you everything that you need to know about how different CrowdToLive® is from the Help To Buy program. However, if you have any more questions then don’t hesitate to contact us with any questions, or sign up to become a CrowdToLive® Champion today.

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RISK WARNING: Investing in property and property crowdfunding involves downside risks as well as the possibility of rewards and should be considered to be a long-term investment strategy. The downside risks could include a loss of capital, illiquidity and a lack of income. The investments should only be made as part of a diversified portfolio. The value of a property may fluctuate. There is no secondary market for investments made in unlisted securities and it may not be possible to sell your securities to third parties in a simple and timely manner, thus putting your capital at risk. Forecasts, estimates, and past performance data are not reliable indicators of future results. Investment made on the CrowdToLive® website site are not covered by the Financial Services Compensation Scheme (FSCS). Investing in the opportunities shown on this platform should only be made by investors who fully understand and appreciate the risks involved (please read the full risk warning here). Elite Capital and Management Services Limited takes no responsibility for any recommendations, estimates or opinions and will not in any circumstances advise individuals on the merits or risks of any investment or whether the potential investment is right for any individual. Any individual looking to make an investment should always seek independent advice before committing. CrowdToLive® is a product owned and promoted by Elite Capital and Management Services Limited, which is authorised and regulated by the Financial Conduct Authority (Reference Number: 822039). Elite Capital and Management Services Limited (Companies House number: 10347767) is registered in England and Wales with its registered office at Chester House, 1st Floor, Office 122, 81-83 Fulham High Street, Fulham Green, London, SW6 3JA