Shrewsbury, Abbey House 01743 285 888
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Newport 01952 810 307
If you bought your home with the aid of a Help to Buy loan, you will currently have this loan secured on your property as a second registered charge. You will have to repay the loan, together with the first registered charge in favour of the Bank or Building Society, when you sell your property (assuming you haven’t paid it off in full in the meantime).
Your repayment amount for the Help to Buy loan is calculated as a proportion of either the current market value or the sale price of your property (whichever is higher). For example, if you received 20% of the initial purchase price of the property through Help to Buy, the amount you will have to pay back (provided you haven't already repaid some of the equity loan) will be 20% of either the current market value or the sale price of your home (whichever is higher).
You should bear in mind that Help to Buy Agents deal with high levels of applications and are unable to speed up the transaction process. Therefore, in order to ensure that exchange of Contracts and completion is not delayed by the need to comply with the strict procedures set out in the repayment process, you must take the following steps as early on in the transaction as you can:
Before instructing your chosen valuer, you must ensure they are RICS qualified and current members. Failure to do so, may mean that the Help to Buy Agent is unable to agree to your chosen valuer.
Please note that the valuation is only valid for three months. Therefore, if the loan has not been redeemed within three months, either a re-valuation or an extension will be required. Your valuer may charge for this. If the figures alter, then so will the redemption amount.
If you have any further queries regarding redemption of equity loans, the following website is most helpful - www.orbitheartofengland.org.uk. Alternatively, please contact the Conveyancing Department on 01743 285888.
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