While homebuyers are no longer able to make property purchases through the Help to Buy scheme, existing homeowners who purchased via the scheme may need ongoing conveyancing advice, particularly when the time comes for you to repay your help to buy loan.
The Help to Buy scheme was setup by the UK government to help first time buyers onto the housing ladder with the purchase of a new build property. The scheme allowed buyers to purchase with just a 5% deposit and allowed the buyer to borrow 20% of the property purchase price, or 40% in London, interest free, for five years. Depending on the area, there were limits to the maximum property price with which the scheme could be used.
The scheme closed to new applicants for new purchases on 31st October 2022. However, there are still many property owners who have Help to Buy loans that will need to be repaid in the future, so using a specialist Help to Buy conveyancing solicitor would be advantageous when looking to redeem a Help to Buy loan.
Homeowners who have bought a property utilising a Help to Buy loan, will need to redeem this within 5 years if they do not wish to pay interest on the outstanding loan amount. If the loan is not repaid within 5 years, interest will become payable on the outstanding amount. The loan must be repaid within 25 years.
A specialist Help to Buy conveyancer will be able to guide you through the process of redeeming a Help to Buy loan, either as a standalone property transaction, or as part of a remortgage.
In most cases, a Help to Buy loan will be redeemed as part of the process of remortgaging or selling the property on which the loan is secured. Holmes & Hills are able to offer a fixed fee quotation on any type of property transaction. Complete the property quote form below to request a fixed fee Help to Buy redemption quote – just select the type of transaction it will be a part of. If you would like a quote purely to redeem your Help to Buy loan, please call us to get a quote.
Holmes & Hills Solicitors have a large team of residential property conveyancers with specialist Help to Buy solicitors who have been dealing with property transactions since the inception of Help to Buy loans.