Help To Buy Deadline Brought Forward
Published: 15/06/2022
The government recently confirmed that the Help to Buy scheme deadline for applications has been brought forward a few months, with the new deadline now being 31st October 2022.
This means that homebuyers will now have to reserve their properties by the end of October in order to take advantage of the government scheme.
Homes England has now updated the guidance on their website to confirm the 6pm deadline on 31st October 2022, with Help to Buy ending completely on 31st March 2023.
Prior to this, the original deadline was due on 31st December 2022, giving potential homebuyers the opportunity to both find the house of their choice and put down a holding deposit.
What is a help to buy equity loan
First launched in 2013, the Help to Buy equity loan scheme is designed to help those who are struggling to save up for a deposit for a home to get on the housing ladder.
An equity loan, worth up to 20% of a property’s value (or up to 40% in London), is used by potential buyers to increase their deposit amount.
Who can currently apply for the loan
The rule on who can apply for the loan changed in April 2021, meaning only first-time buyers can apply for the scheme.
In order to apply for the scheme, you will need to be purchasing a new-build home. Help to Buy equity loans can only be used to purchase new-build homes worth up to £600,000 in England and up to £300,000 in Wales.
A minimum deposit of 5% will be required from the purchaser to be eligible for an equity loan. The purchaser will also need to obtain a mortgage for the amount not covered by the deposit and equity loan.
Repayment of the equity loan
Our introducer and client feedback confirm that one of the biggest draws of the equity loan scheme is that the loans are interest free for the first five years.
Following this point, clients may rethink their options outside of simply repaying the equity loan from savings and paying interest.
Our conveyancing and remortgage teams, made up of specialists with years of experience and expertise can assist your clients with:
1) Remortgage services to partially or fully repay the equity loan together with Deed of Release or Postponement
2) Sale and associated purchase: when the property is sold the Government loan will have to be repaid in full
Who are GWlegal?
GWlegal are a property solicitors based in Liverpool, specialising in buying or selling, remortgage, declaration of trust, bridging and buy-to-let landlords.
If you have a legal matter you wish to discuss don’t hesitate to get in touch. You can call us on 0345 373 3737 email us discuss@gw.legal with your question.
Who are GWlegal? We’re a national firm with local values.
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