The Help to Buy scheme has provided many first-time buyers with the opportunity to step onto the property ladder. However, as circumstances change, many homeowners find themselves needing to repay their Help to Buy equity loan, a process known as Help to Buy redemption. If you’re considering redeeming your Help to Buy loan, this guide outlines the key steps involved and how a solicitor can assist you.
Help to Buy redemption refers to the repayment of the equity loan provided by the government under the Help to Buy scheme. This repayment can occur either when you sell your property or when you decide to repay the loan without selling. The amount you repay is based on the market value of your property at the time of redemption, not the amount initially borrowed.
Key Steps in the Help to Buy Redemption Process
1. Obtain a Market Valuation
The first step in the redemption process is obtaining an independent market valuation of your property. This valuation must be carried out by a Royal Institution of Chartered Surveyors (RICS) accredited surveyor. The valuation report is valid for three months and forms the basis for calculating the amount you need to repay.
2. Submit the Valuation to Help to Buy
Once you have the valuation report, it must be submitted to Help to Buy. Along with the valuation, you’ll need to complete and submit a redemption application form.
3. Receive the Redemption Figure
Help to Buy will review the valuation and provide you with a redemption figure. This figure includes the percentage of the property’s market value that corresponds to your equity loan, as well as any applicable fees and charges.
4. Appoint a Solicitor
A solicitor is required to handle the legal aspects of the redemption process. They will liaise with Help to Buy, prepare the necessary documents, and ensure the repayment is completed smoothly. If you’re re-mortgaging to fund the redemption, your solicitor will also work with your mortgage lender.
5. Arrange Payment
Once the redemption figure is agreed upon, your solicitor will arrange for the repayment of the loan. This may involve transferring funds from a remortgage, personal savings or sale of your property. The solicitor will also handle any outstanding fees payable to Help to Buy.
6. Obtain Confirmation
After the payment is made, Help to Buy will confirm the redemption of your Help to Buy loan and remove their charge from the property’s title at the Land Registry.
Common Challenges and How to Overcome Them
- Valuation Disputes: If you disagree with the redemption figure based on the valuation, you may request a review or provide additional evidence to support your case.
- Time Constraints: The valuation report is valid for only three months. If the process is delayed, you may need to obtain a new valuation, which can incur additional costs.
- Legal Complexity: The redemption process involves various legal and financial steps. Working with an experienced conveyancing solicitor ensures that all requirements and timeline are met, minimising stress and potential errors.
An experienced residential conveyancing solicitor’s role is to simplify the redemption process and ensure a successful outcome. By understanding the steps and seeking professional guidance, you can confidently manage your Help to Buy redemption and take the next step in your property journey.
Have questions? Get in touch today!
Call us on 020 7928 0276, we will be taking calls from 9:30am to 6:00pm.
Email us on info@lisaslaw.co.uk.
Use the Ask Lisa function on our website. Simply enter your details and leave a message, we will get right back to you: https://lisaslaw.co.uk/ask-question/
For more updates, follow us on our social media platforms! You can find them all on our Linktree right here.
