It is a government scheme first introduced in 2013 to help first time buyers get on the property ladder by putting in an equity stake of up to 40% of the purchase price. This meant buyers could put in as little as 5% and borrow the remainder through a mortgage.<\/p>\n\n\n\n
Help to Buy has been successful in helping first time buyers get on the property ladder as only a small deposit has been required.<\/p>\n\n\n\n
After five years interest is payable on the government\u2019s equity stake in addition to your normal mortgage payment, which will increase your monthly costs.<\/p>\n\n\n\n
The equity stake you pay back is based on the value of the property at the time of the repayment, not what the government initially put in. This means if the property increases in value you will not receive all of the increase, the government shares it with you.<\/p>\n\n\n\n
You might therefore want to keep all the value increase yourself.<\/p>\n\n\n\n
The administrator of the government\u2019s equity stack is Target HCA.<\/p>\n\n\n\n
They can be emailed at target.hca@targetgroup.com<\/a><\/p>\n\n\n\n Or written to at Target HCA, PO Box 911, Newport, NP20 9PA<\/p>\n\n\n\n There are three ways to pay off the equity loan:<\/p>\n\n\n\n Start the process when you receive an offer for your property or are close to confirming the sale.<\/p>\n\n\n\n Instruct a surveyor who is a RICS qualified and registered valuer to value your property.<\/p>\n\n\n\n The valuation report should be compliant with Target HCA\u2019s requirements. An experienced surveyor will know what is required.<\/p>\n\n\n\n The valuation will last for three months to allow the process to conclude. If it takes over three months the surveying firm can extend it by up to 4 months by issuing a letter and undertaking a desktop valuation report.<\/p>\n\n\n\n Survey Hut can produce the RICS valuation report. Click here<\/a> to get more information on how to get a report.<\/p>\n\n\n\n You will need a conveyancing solicitor to help you with the process.<\/p>\n\n\n\n To find a solicitor look at the Law Society website<\/a>.<\/p>\n\n\n\n An administration fee of \u00a3200 is payable to Target HCA.<\/p>\n\n\n\n An application form will need to be completed.<\/p>\n\n\n\nHow can I pay it off?<\/strong><\/h2>\n\n\n\n
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When should I start the process if I\u2019m selling my home?<\/strong><\/h2>\n\n\n\n
What\u2019s the first thing I should do?<\/strong><\/h2>\n\n\n\n
Do I need any other help?<\/strong><\/h2>\n\n\n\n
Are there any other costs?<\/strong><\/h2>\n\n\n\n
What else?<\/strong><\/h2>\n\n\n\n