Selling a Home Purchased With Help to Buy

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If you are planning to sell a home purchased with Help to Buy, there are some essential things you need to know. Help to Buy is a government scheme to help first-time buyers get onto the property ladder. However, selling a Help to-Buy home can be more complicated than selling a regular house. This article will explain everything you need to know about selling a home purchased with Help to Buy.

What is Help to Buy?

Help to Buy is a government scheme to help first-time buyers get onto the property ladder. The scheme was introduced in 2013 and has helped thousands of people buy their first home. The scheme allows you to buy a home with just a 5% deposit, with the government providing an equity loan of up to 20% (or 40% in London) of the property’s value. This means you only need to secure a mortgage for the remaining 75% (or 55% in London) of the property’s value.

How does selling a property with Help to Buy work?

If you are planning to sell a home purchased with Help to Buy, there are some important things you need to know. First, you will need to pay back the equity loan from the government. The amount you need to pay back depends on the value of your home at the time of sale. For example, if your home was worth £200,000 when you bought it and you received an equity loan of £40,000, you will need to pay back 20% of the sale price when you sell the property. If you sell the property for £220,000, you will need to pay back £44,000.

What are the fees when selling a property with a Help to Buy equity loan?

Selling a home purchased with Help to Buy may also come with additional fees and charges. You will need to pay estate agent fees, solicitor fees, and any other fees associated with selling a property. You will also need to pay back the equity loan from the government, as mentioned above.

Can you sell a Help to Buy home before paying back the equity loan?

Yes, you can sell a Help to Buy a home before paying back the equity loan. However, you will need to pay back the equity loan from the sale proceeds. This means you may need to sell your home for a higher price than you bought it for in order to pay back the equity loan and cover any fees and charges associated with selling the property.

What happens if you can’t sell your Help to Buy home for the full amount?

If you can’t sell your Help to Buy home for the full amount you owe on the equity loan, you will still be responsible for paying back the outstanding balance. You can either pay back the outstanding balance in full or set up a payment plan with the government.

What if you want to sell your Help to Buy home and buy another property?

If you want to sell your Help to Buy home and buy another property, you can do so. However, you will need to pay back the equity loan from the proceeds of the sale of your current property. You may also be able to transfer the equity loan to your new property if you are eligible.

How can you prepare your Help to Buy home for sale?

If you are planning to sell your Help to Buy home, there are some things you can do to prepare your property for sale. First, make sure your property is clean and tidy, and consider making any necessary repairs or improvements. You should also consider hiring a professional photographer to take photos of your property for your listing.

What are the benefits of selling a Help to Buy home?

Selling a Help to Buy home can provide you with several benefits. Firstly, you can use the proceeds from the sale to pay off the equity loan from the government and any other fees and charges associated with selling the property. This can help you to clear your debts and move on to the next stage of your life.

Secondly, selling a Help to Buy home can allow you to move into a larger or more expensive property. If you have outgrown your current home or are looking to move to a different area, selling your Help to Buy home can give you the financial freedom to do so.

Finally, selling a Help to Buy home can allow you to make a profit on your investment. If the value of your property has increased since you bought it, you may be able to sell it for a higher price than you originally paid, giving you a return on your investment.

Conclusion

Selling a home purchased with Help to Buy can be a bit more complicated than selling a regular home. However, understanding the process and preparing your property for sale can make the process as smooth as possible. Remember to pay back the equity loan from the government and any other fees and charges associated with selling the property, and consider the benefits of selling your Help to Buy home before making any decisions.

FAQs

  1. Can I sell my Help to Buy home without paying back the equity loan first?
  • No, you will need to pay back the equity loan from the proceeds of the sale.
  1. Will I have to pay back the equity loan in full when I sell my Help to Buy home?
  • No, you will only need to pay back the percentage of the equity loan that corresponds to the sale price of the property.
  1. Can I transfer the equity loan to a new property if I sell my Help to Buy home?
  • Yes, you may be able to transfer the equity loan to your new property if you are eligible.
  1. Will I have to pay estate agent fees when selling my Help to Buy home?
  • Yes, you will need to pay estate agent fees, solicitor fees, and any other fees associated with selling a property.
  1. What are the benefits of selling a Help to Buy a home?
  • The benefits of selling a Help to Buy home include paying off debts, moving to a more extensive or expensive property, and making a profit on your investment.

Winfields, an autonomous group of RICS-qualified chartered surveyors, is exceptionally well-positioned to assist you in navigating the intricacies of the Help to Buy initiative. Whether you are seeking to remortgage, repay your loan, or sell your property, our team of seasoned appraisers comprehensively understands Help to Buy and can provide an accurate and unbiased assessment of your home’s current market value in just a few days. Our digital reports are compiled using cutting-edge technology, allowing us to deliver valuations with laser precision and speed. You can confidently trust that our impartial Help to Buy valuations are high-value investment that fully satisfies Target’s requirements. Don’t hesitate to reach out to Winfields today or arrange a complimentary consultation to take advantage of our cost-effective, dependable, and thorough service.

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