How does a Help to Buy: Equity Loan work?
With a Help to Buy: Equity Loan the Government lends you up to 20% of the cost of your newly built home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest.
You won’t be charged loan fees on the 20% loan for the first five years of owning your home.
Is Help to Buy just for first-time buyers?
You do not have to be a first-time buyer to be eligible for the Help to Buy scheme. Equity loans are available to first time buyers as well as homeowners looking to move. The home you want to buy must be newly built with a price tag of up to £600,000. You also can’t own another home at the time of buying through the Help to Buy scheme.
How does buying through the Help to Buy Scheme affect the purchase of a property?
The procedure for buying under the Help to Buy scheme can be complex and it is therefore very important that your solicitor is familiar with how the scheme works. In addition, when buying a new build house, buyers may purchase a property before construction has begun or before the property is completed, this may mean that contracts are exchanged before the property is built and therefore a fixed completion date may not be given.
The conveyancing process can be slightly different for new build properties and proper checks on planning permission for the property and development will be necessary along with checks that appropriate agreements are in place relating to the adoption of the roads and sewers, the access rights, and routes for other services.
If you are thinking of purchasing a new home through the Help to Buy scheme contact a member of our experienced conveyancing team today for more information.