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The Help to Buy scheme is a government initiative aimed at helping first time buyers purchase a home.
It offers an equity loan of up to 20% of the property's value (40% in London) for new-build homes, enabling buyers to secure a mortgage with a deposit as low as 5%.
The Help to Buy scheme can only be used for properties with a purchase price of up to £300,000. The scheme aims to make homeownership more accessible and get people on the property ladder.
At Huggins Lewis Foskett, our Help to Buy conveyancing solicitors in East London can help you navigate the Help to Buy scheme and ensure you receive the maximum amount of assistance you are eligible for when buying your first home.
We can help you comply with the scheme, review your contracts, and handle the property transaction on your behalf.
We can also offer guidance on the legal implications of the scheme, such as eligibility criteria, mortgage agreements, and the terms of the equity loan.
If you would like to talk to our Help to Buy solicitors in East London, ring us on 0208 989 3000. Or use our simple contact form to request a call back and we will be happy to answer your questions.
Our Help to Buy services
Help to Buy, Equity Loan
The Help to Buy equity loan scheme allows first time buyers to claim up to 20% of the purchase price of a new build home (up to 40% in London) from the government.
There are conditions for a Help to Buy equity loan, the buyer must contribute a minimum 5% cash deposit and obtain a mortgage for the rest of the purchase price.
However, the buyer won’t be charged any interest or fees on the equity loan for the first five years.
If you buy a home with an equity loan scheme and decide to sell it further down the line, the government will recover the same percentage of the sale price that it put into the purchase.
Help to Buy, Shared Ownership
The shared ownership scheme is a government-backed initiative designed to help people get on the property ladder.
It allows buyers to purchase a share of a property (usually between 25% and 75%) and pay rent on the remaining share. This makes homeownership more affordable by reducing the initial deposit and mortgage required.
Over time, buyers can purchase additional shares (a process known as ‘staircasing’) until they own the property outright. The scheme is aimed at first-time buyers, those who have previously owned a home but can't afford to buy now, and existing shared owners.
Help to Buy ISA, for existing account holders
The Help to Buy ISA scheme is no longer open to new accounts, but anyone who opened a Help to Buy ISA before 30 November 2019, can continue saving until November 2029.
The Help to Buy ISA is a savings account specifically designed for purchasing a new build property. The government will increase the buyer’s savings by 25% up to a maximum of £3,000 and they can save up to £200 per month.
When a buyer decides to buy a house and instructs a solicitor, the conveyancing solicitor will apply for the government’s contribution which will be added to the completion monies. The bonus cannot be used for a deposit or any other costs.
Everything you need to know about Help to Buy
What is the process of buying with a Help to Buy equity loan?
The Help to Buy conveyancing process with an equity loan differs slightly from the typical conveyancing process.
Once you have secured a property, you will need to apply for your equity loan and fill in a Property Information Form to send to your Help to Buy agent.
If your application is approved, your Help to Buy agent will give you an Authority to Proceed and you can then apply for a Repayment Mortgage.
When you have the Authority to Proceed, your conveyancer will receive the necessary legal information and forms for you to fill in and send to your Help to Buy agent, you must then pay at least 5% of your deposit.
Your Help to Buy agent will then review the paperwork and confirm that you have Authority to Exchange.
You will then reach the completion stage and pay the rest of your deposit.
Your details will then be passed onto the equity loan administrator to manage the repayment of your loan going forward.
How long does the Help to Buy conveyancing process take?
The conveyancing process for buying a property with a Help to Buy equity loan is slightly different from the typical conveyancing process as you need to obtain permission to proceed at several stages from your Help to Buy agent.
Once you receive the Authority to Proceed from your Help to Buy agent, you have three months to exchange contracts for your property purchase.
You must then complete the purchase within six months of exchanging contracts.
If you decide to back out after exchanging contracts, you may have to pay costs.
Can my partner and I get a Help to Buy equity loan?
The Help to Buy equity loan is only available if both you and your partner are first-time buyers.
Unfortunately, you cannot use the scheme if either of you has previously owned a property.
If you are married or in a civil partnership, you must apply jointly, therefore, if one of you was a first time buyer and wanted to use the scheme alone, this would not be possible.
Speak to our Help to Buy solicitors in East London
Need clear, sensible guidance on the Help to Buy scheme or any related issues?
Call our Help to Buy conveyancers in London now on 0208 989 3000. Or use the simple contact form below and we will get back to you soon.
