HTB Selling - please help! First post

El_W

Hi guys, been a long time lurker on these forums and always noticed how helpful people are.

Basically, I bought my first property around 3 years ago now but looking to put it up for sale and move back in with my mum (personal reasons - please don't question:p ) I put around £4-5K down and the government put down the other 20% (Help to Buy)

The EA has valued it and we're looking at looking at selling at a similar price I bought for or just over, but I need to obviously consider the repayment of the loan, fees etc etc. I'm not sure if it possible to work out at an estimate, but after all of this will I get any money back in my pocket? There won't a chain or anything on my part but I'm not entirely sure how it works. I also don't know how much of a pain the process is selling HTB? Flat was bought for 90K.

G_M

El_W wrote: »

.....I put around £4-5K down and the government put down the other 20% (Help to Buy)

......

Bl**dy h*ll!

If 5K constituted 80% that's one bargain property!

Cakeguts

You probably haven't paid anything off the mortgage. New homes (if it was new) have a premium on them so don't tend do me worth as much as when they were new for some time after you have bought them so based on this I would guess because I don't know for sure that you won't get any money back and that you will actually be lucky not to be in negative equity because of the very small deposit and the fact that you have to pay back 20% to the government.

Cakeguts

G_M wrote: »

Bl**dy h*ll!

If 5K constituted 80% that's one bargain property!

No it didn't it just looks as if it did you have to read all of it right to the very very end and there you will see the number 90. This is an important number.

El_W

Cakeguts wrote: »

You probably haven't paid anything off the mortgage. New homes (if it was new) have a premium on them so don't tend do me worth as much as when they were new for some time after you have bought them so based on this I would guess because I don't know for sure that you won't get any money back and that you will actually be lucky not to be in negative equity because of the very small deposit and the fact that you have to pay back 20% to the government.

How's that work then?

AdrianC

El_W wrote: »

How's that work then?

When you bought your £90k flat, you put in £4-5k, the government put in 20% - £18k - and you had a mortgage for the other £67-68k.

When you sell, you'll be lucky to get the £90k - because it was a new-build, and now it's just another second-hand flat, which means potential buyers won't have the warm-and-fuzzies of a new flat, and they won't be able to take advantage of the same incentives. So let's say you walk away with £85k.

Except you won't. Because there's another couple of grand in fees for selling - EA, solicitor. So that's £83k.

Except you won't. Because you'll need to pay the mortgage off. And you won't have repaid very much at all in three years, even if it's repayment. So let's say you have to pay £65k back. You now have £18k.

Except you won't. Because you'll need to pay 20% of the sale price to the government back, too. So that's another £17k. You now have a grand in your pocket.

Jon_B_2

Assuming a 3% interest rate and 25 year mortgage, you should have around £62-63k to pay back on the mortgage. You'll probably have a few grand after fees etc. Depends if the price of your flat has gone up.

kingstreet

You need to contact Target and you will be expected to pay for a valuation by an RICS surveyor.

What you pay back will be based on the higher of this valuation and your sale price.

http://www.myfirsthome.org.uk/iwantto/redeem/