So, the time has come when you're looking to sell your help-to-buy property. The Help to Buy scheme has been a lifesaver for many first-time buyers; however, the process of selling and how this would affect your equity loan.
This is why Derbyshire Properties is here to answer some of the most popular questions that are asked when it comes to selling a help-to-buy property.
Can I sell my house after using the help-to-buy scheme?
As usual, there are some conditions that you must meet in order to place your property on the market, and you may also need to get permission from the scheme provider.
Before you sell the property, you will need to pay back the help-to-buy equity loan. The first five years of a Help to Buy equity loan are interest-free, but after ten years, the expenses of the loan may skyrocket.
So, if you can, try to pay it back as quickly as possible.
The loan must be repaid according to the terms in 10% increments of the existing value of the property at a time. Therefore, if you borrowed 20%, you might pay back 10% or 20% of the property's current value all at once.
Selling your Help to Buy house will be the same as selling any other property if you have already repaid the equity loan, either through a remortgage or your savings.
The situation becomes more challenging if you haven't repaid the equity loan, as the HCA gets involved in the selling process. You must inform the HCA via its representative, Target, when you accept an offer on your house. Target handles all Help to Buy administration for the HCA.
A chartered surveyor will also need to value the property. That surveyor must be a member of the Royal Institute of Chartered Surveyors (RICS), or else the HCA will reject your assessment and you will have to pay for another survey.
When can you sell your help to buy a property?
You can sell your property at any time. It is your property, and you can sell it when you wish.
However, there are a few points you may want to consider before you think about selling.
You might want to wait until you have built up equity in your home before starting to pay off the mortgage while the property price rises.
We also suggest you get that equity loan paid off in the meantime. This will make the process a lot easier when you come to sell the property.
For more advice when it comes to selling a property, whether it is a help-to-buy or not, you can either visit our website for more information or contact our team of property experts.
