Help to Buy Equity Loans are only available for those buying a newly constructed home worth under £600,000.00.
With property prices at an all-time high, buyers are finding it increasingly difficult to raise a large deposit needed to secure a home. The government is aware of this problem and in 2013 initiated the help to buy scheme as a way to help those without a large deposit purchase their first property or move into a new home.
Provided that you do not own any other property at the time that you apply for help to buy equity loan and that you have a deposit of 5%, the government will lend to you up to 20% of the property value as an equity loan. You will then be responsible for raising a mortgage of 75% of the balance of the purchase price.
The first five years of the help to buy equity loan is interest-free. From year six, interest is charged subject to the help to buy lending criteria.
Repayment of the equity loan must be made upon the sale of the property.
Our conveyancing experts can advise clients on all aspects of help to buy equity loans which include making the application concerning a proposed purchase.
Our Conveyancing team can also advise and assist when a property that is subject to an existing help to buy equity loan is going to be remortgaged or if you wish to repay the help to buy equity loan.
In cases where a property is owned by a married couple or cohabiting couples, and a separation takes place, it is often necessary to transfer the property into one of the co-owners names. There is a legal process to undertake with the help to buy equity loan provider, and that is a process which our expert lawyers can undertake on your behalf and with little fuss.
We have a range of experienced lawyers who can advise on the process of obtaining, transferring of redeeming your help to buy equity loan and completing the process of the same.
We are happy to discuss any part of the process with you as matters proceed so do not hesitate to give us a call.
For more information why not download one of our Conveyancing Guides.
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