Help to Buy

Are you a buyer considering Help to Buy?

IF YOU’RE A BUYER ON THE CURRENT HELP TO BUY SCHEME:

  • The closing date for submitting your application for Authority to Proceed for the existing Help to Buy scheme was Tuesday 15 December.
  • Once you have completed a reservation, there are a few key timeframes to work towards:
    • The Property Information Form needs to be submitted to a Help to Buy agent (by your mortgage broker or yourself)
    • Authority to Proceed will be issued within 8-9 working days
    • Following the issue of the mortgage offer and near completion of conveyancing, your solicitor will apply for Authority to Exchange from a Help to Buy agent; this will take 3-4 working days to be issued
    • Once contracts have been exchanged, your solicitor will apply for Confirmation to Provider, which will take 2 working days to be issued and legal completion can then take place
    • You have until 31 March 2021 to reach practical completion on your purchase
    • If you reserved your future home before 30 June 2020, you have until 31 May to reach legal completion

IF YOU’RE A BUYER ON THE 2021 - 2023 HELP TO BUY: EQUITY LOAN SCHEME:

  • Help to Buy 2021 - 2023 is for First Time Buyers only; that means that anyone who has already acquired a major interest in a dwelling or residential land anywhere in a world will not be eligible
  • If a property is being bought by more than one individual then all purchasers must be First Time Buyers
  • The property value is capped at £600,000 in London and varies across the country depending on region
  • Applicants will be required to undergo a sustainability check with a Help to Buy Agent to ensure they can afford to sustain their home ownership
  • Upon reservation, the purchaser is required to immediately apply to the relevant Help to Buy Agent for the Help to Buy: Equity Mortgage
  • If the purchaser’s application is ineligible, the reservation will be cancelled and the reservation fee of £500 will be refunded in full
  • Eligible Purchasers will be able to apply to access a Help to Buy: Equity Mortgage for up to 20% of the Full Purchase Price outside of London and up to 40% in London (this is subject to the Regional Full Purchase Price Cap for the relevant region a new build property is located in)
  • There is no cap on the Eligible Purchaser’s household income
  • Eligible Purchasers will be required to raise funding, (comprising a First Charge Lender Mortgage with an Approved Lender plus a deposit of at least 5%) of at least 80% (60% in London) of the Full Purchase Price
  • It is a strict condition of the Help to Buy: Equity Loan 2021 - 2023 programme that Eligible Purchasers must always contribute a 5% cash deposit (5% of the Full Purchase Price) to their purchase upon exchange of contracts

Our team of New Build development experts are on hand to answer your questions, whether you are a buyer or a developer applying for a Help to Buy allocation.

London Residential Development

newhomes@hamptons.co.uk

020 3451 1544

Country Residential Development

hamptonsnewhomes@hamptons.co.uk

What our research team has to say

What will be the impact of the new Help to Buy scheme? Read the forecast from Hamptons Research.