The End of Help to Buy (HTB)

What was the HTB Scheme?

There were a few different ones but the one which most people will know more about was the one which applied when buying a New Build. Buyers would need just a 5% deposit and the Government would provide an Equity Loan for up to 20% of the Property Value or 40% if it was in London. The balance was then provided from the buyers own funds, typically from a Mortgage. This was available on for New Builds under a certain amount. It was an interest free loan for 5 years and it was registered against the Property in the same way as a Mortgage was.

When does it end?

Scotland stopped accepting new applications as of 5^th February 2021.

The scheme in England & Wales was closed to new applicants 31^st October 2022.

I am currently buying a Property with HTB, what does it mean to me?

To qualify, homeowners must legally complete the purchase on or before 31^st March 2023.

It was announced by the Government on the 26^th January 2023 that Developers have until the 17^th March 2023 for Properties to be build-complete and to have reached practical completion, This is to allow sufficient time for completion before the scheme ends on 31^st March 2023.

Funding for HTB will not be available after the 31^st March 2023.

The Government have complied an FAQ page which can assist with any other queries please see https://www.gov.uk/government/publications/help-to-buy-equity-loan-buyers-guide/help-to-buy-equity-loan-2021-2023-applications-closure-frequently-asked-questions-accessible-version?dm_i=4I3I,1HDO3,6RLMAH,6VE19,1

How do I redeem an Equity Release Charge?

If this applies to you, then you will find the Governments guidance helpful: https://www.gov.uk/government/publications/repay-your-help-to-buy-equity-loan

There is a form you will need to complete and you will also have to provide:

• A Property Valuation carried out by the Royal Institute of Chartered Surveyors
• You will need to have paid any outstanding payment or any arrears
• You will need to provide your solicitors contact details and provide them with authority to act on your behalf.

This is very much a process but essentially when they have everything they require they will write to your Solicitors who will then have to submit what we call an “Undertaking” in which we promise to do certain tasks.

They will then send an Authority to Complete which allows your solicitor to complete the transaction. Following repayment, the Charge is then removed at the Land Registry although this can sometimes take a while.

We can happily assist with any redemptions, if you require assistance please contact me, or a member of our team. We have offices in Market Bosworth, Hinckley, Stoney Stanton, Leamington Spa and Warwick.