Debate House Prices


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Help to Buy creates surge in new homes

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Comments

  • mwpt
    mwpt Posts: 2,502 Forumite
    Sixth Anniversary Combo Breaker
    CLAPTON wrote: »
    they would use the district surveyor to value the property

    Speculation or you've seen a source for that? Really curious how it works.
  • chucknorris
    chucknorris Posts: 10,793 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 19 February 2016 at 8:03PM
    Filo25 wrote: »
    It is interest free over 5 years, however it is an equity loan, so if the property does go up in value the government will also participate in that increase when the property is sold, so if you are buying in a property hotspot with rapidly increasing prices, the real effective cost of the loan can be surprisingly high.


    So would you have to repay some of the increased equity if you used HTB to purchase a house, repaid the 20% loan after 5 years, then lived in it for say 15 years, then sold? Or does that cease after you repay the loan after 5 years? If so, then it is still a subsidy (but with some catches).
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    mwpt wrote: »
    Speculation or you've seen a source for that? Really curious how it works.

    The government sometimes has need to form a view about property values e.g. for IHT purposes, cgt purposes and if it chooses to then it uses the District Surveyor
    I'm sure it would it these circumstances also.
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