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    • jamesl1989
    • By jamesl1989 13th Mar 17, 4:06 PM
    • 5Posts
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    jamesl1989
    Help to buy - developer/builder expiry
    • #1
    • 13th Mar 17, 4:06 PM
    Help to buy - developer/builder expiry 13th Mar 17 at 4:06 PM
    I'm currently going through the motions of buying a help to buy house. The estate agent has said that contracts must be exchanged before 31 March, because this is when the help to buy expires for the developer. We have only just had confirmation of our mortgage through, and so this deadline might not be realistic. Does anyone know if this deadline is a hard deadline, or whether this is just a ploy to speed us up?

    Thanks
Page 1
    • Futuristic
    • By Futuristic 13th Mar 17, 4:11 PM
    • 723 Posts
    • 360 Thanks
    Futuristic
    • #2
    • 13th Mar 17, 4:11 PM
    • #2
    • 13th Mar 17, 4:11 PM
    help to buy expires for the developer
    ???? Never heard of this one before, the developers suddenly decided they will end providing the help to buy scheme? Unlikely.

    It is common however for developers wanting to exchange contracts within a month, help to buy approval only takes a week max if you send everything off and it's correct then you'll get approval within 3-4 days.

    https://www.gov.uk/government/publications/help-to-buy-equity-loan-calculator-and-guidance
    If everything is white and not in red you are very very very likely to be approved.

    They can however pull out if they gave you 28 days on reservation and they have someone willing to offer more they could accept that instead after the 28 days. It depends if there is interest in the development, unlikely they would suddenly pull out however if they have started on their end as well preparing contracts etc.
    • jamesl1989
    • By jamesl1989 13th Mar 17, 4:14 PM
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    jamesl1989
    • #3
    • 13th Mar 17, 4:14 PM
    • #3
    • 13th Mar 17, 4:14 PM
    Thanks for your reply. The estate agent said "the Help to Buy arrangement expires for this developer on 31st March". Everything on equity loan calculator is fine, and mortgage shouldn't be an issue, the only item taking the time is that I'm currently a joint owner on a HTB home - I'm undertaking a transfer of equity to remove myself from the deeds, but HTB have been slow at responding on this, hence the rush. Solicitors for transfer of equity have said that this may not happen before end of March.
    • kingstreet
    • By kingstreet 13th Mar 17, 4:40 PM
    • 31,578 Posts
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    kingstreet
    • #4
    • 13th Mar 17, 4:40 PM
    • #4
    • 13th Mar 17, 4:40 PM
    Developer funding works annually from 1 April to 31 March and there are system issues around completions between mid-March and mid-April when the IMS system is closed for updating.

    This may be genuine. They might not yet have put in their funding bid for 17/18 and need you to exchange for funds in this cycle, not the next.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • jamesl1989
    • By jamesl1989 13th Mar 17, 4:46 PM
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    jamesl1989
    • #5
    • 13th Mar 17, 4:46 PM
    • #5
    • 13th Mar 17, 4:46 PM
    Thanks. Presumably properties completing over the year end is quite commonplace? Would they need to reapply for funding if it doesn't complete before this year end then?
    • kingstreet
    • By kingstreet 13th Mar 17, 5:12 PM
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    kingstreet
    • #6
    • 13th Mar 17, 5:12 PM
    • #6
    • 13th Mar 17, 5:12 PM
    I think they have to exchange contracts by 31/03/17 for the funds to come from the 16/17 allocation.

    We get loads of emails from our three HTB Agents, Orbit, BPHA and Radian but I delete them as soon as I read them as they are very, very repetetive.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • jamesl1989
    • By jamesl1989 13th Mar 17, 9:34 PM
    • 5 Posts
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    jamesl1989
    • #7
    • 13th Mar 17, 9:34 PM
    • #7
    • 13th Mar 17, 9:34 PM
    Thanks kingstreet. What happens if it does go last 31 March, do they then have to use next years allocation, or could they turn around and put it back on the market (presumably non HTB).
    • jamesl1989
    • By jamesl1989 13th Mar 17, 10:06 PM
    • 5 Posts
    • 0 Thanks
    jamesl1989
    • #8
    • 13th Mar 17, 10:06 PM
    • #8
    • 13th Mar 17, 10:06 PM
    Also, presumably I need to exchange contracts by 31 March, but actual completion can wait (until transfer of equity is complete).
    • kingstreet
    • By kingstreet 14th Mar 17, 7:18 AM
    • 31,578 Posts
    • 16,869 Thanks
    kingstreet
    • #9
    • 14th Mar 17, 7:18 AM
    • #9
    • 14th Mar 17, 7:18 AM
    You need to speak to your broker about this as I can only speculate not knowing the full picture.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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