If you are a first-time home buyer and are looking into buying a new-build home and taking out a Help to Buy loan, you may have some questions about repayments; for example, how will repay your loan if you decide to sell the property in the future? Being informed about the process is important. If you decide to sell your home in the future, here are some of the things you will need to know.
How much will you need to repay when you decide to sell?
If you decide to sell your property with an existing Help to Buy loan taken out for the home in question, the amount that you will need to pay will be worked out by the government depending on the market value of your property at the time. This amount is the higher of the sale price and the valuation provided by the Royal Institution of Chartered Surveyors (RICS). This amount will need to be paid by the completion date of the sale.
In determining the affordability of a Help To Buy loan, it is worth using an online calculator from a reputable source such as Which? to provide a useful illustration and enable you to forward plan.
How do you repay your loan?
During the sales process of the home, there are several steps you will need to take in the Help to Buy repayment process. To repay the loan, you will need to get a surveyor’s valuation report and find a conveyancing company, such as Sam Conveyancing, to help you with the Help to Buy repayment process.
Get a surveyor’s valuation report
If there have been any breaches of planning permission, external cladding or other building regulations that may have an impact on the property’s value, you will need to tell the government so that it can advise you which surveyor you can use. Once the valuation report has been completed by a certified and registered Royal Institution of Chartered Surveyors surveyor, you will send this away to the government to be assessed.
Work with a conveyancing solicitor
Once the report has been completed, it is time to contact a conveyancing solicitor to help you with the next steps in the process if you have not already done so.
Pay the administration fees
The final step in the process before you repay your loan is to pay the administration fees and any arrears and outstanding fees.
Complete the form and repay your loan
Finally, you will complete your form and repay your Help to Buy loan.