Help to Buy is a government scheme designed to help people purchase their own home. The scheme has been introduced for a limited period and has recently been extended due to its widespread popularity among property buyers.
Under the scheme the government provides the purchaser with funds to buy their new home by way of an Equity Loan.
In England the maximum sum available under the Help to Buy scheme is £120,000, though the figure is higher in London.
Buyers are required to provide a deposit of at least 5% of the purchase price. The balance of the purchase price is borrowed under a standard mortgage.
After 5 years an annual fee of 1.75% is charged on the amount initially loaned. This is linked to the Retail Prices Index (RPI) plus 1%.
The loan must be repaid after 25 years, or if the property is sold earlier.
The total amount repayable is calculated as a proportion of the market value of your home that was funded by the help to Buy Equity Loan, plus interest and charges.
The amount that ultimately has to be repaid is based on the market value of your home when you repay the Help to Buy Equity Loan.
If you are looking for a Help to Buy Equity Loan solicitor in Devon and Somerset who is experienced in dealing with Help to Buy transactions then please contact us for details of our charges. Our solicitors and conveyancers will guide you through the legal process with straightforward, plain speaking advice. Call us on freephone 0333 888 0404 or send an email to us at info @sleeblackwell.co.uk for a quote.