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Are you a first time buyer using the Help to Buy Equity Loan Scheme?
Tuesday, January 31, 2023
Tuesday, January 31, 2023
The Help to Buy Equity Loan Scheme closed to new applicants on 31st October 2022.
The Government has now announced that homebuilders have until 17th March 2023 to finish building your home. This means that the house must be ready to live in and have received its New Home Warranty Cover.
You must legally complete your purchase by 31st March 2023. This means paying the balance of the purchase price to the homebuilder and receiving the keys by 6pm.
The Government has advised that the deadline for legal completion will not be extended.
There are a number of steps which need to be taken before legal completion can take place and there are various parties involved at different stages.
- Your solicitor will need confirmation from the homebuilder that the property has been built and received its New Home Warranty.
- Your solicitor will need to apply to the Help to Buy Agent for Authority to Complete. As the deadline for legal completion draws close, the Help to Buy Agents are likely to receive high volumes of such requests and their turnaround times may be impacted.
- Your solicitor will need to apply for mortgage funds from your lender. Most lenders require at least 5 working days’ notice to send the mortgage funds to your solicitor.
If the house is not fully built by 17th March 2023 you will no longer be eligible for the Help to Buy Equity Loan Scheme. The homebuilder must refund your reservation fee and any deposit paid on exchange of contracts. You will be responsible for any other costs you may have incurred, for example legal fees and disbursements.
If you have any queries regarding the Help to Buy Equity Scheme or the deadlines which need to be met, please contact our New Build team on 0191 255 0255 or email conveyancing@samuelphillips.co.uk.
Written by Helen Griffiths, Senior Associate and Head of Residential Property
Helen is a Chartered Legal Executive and residential conveyancing specialist. She advises on all aspects of residential conveyancing including freehold and leasehold sales and purchases for both registered and unregistered properties. She also advises on Help to Buy and Shared Ownership Schemes as well as Help to Buy, Lifetime and Forces Help to Buy Isa’s.
