HELP! Part Ex & Help to Buy

Carlou61

Hi everyone....after some info.

I know it's been asked a few times...but why can't you part Ex and get help to buy??

My current situation: I current have a mortgage with help to buy. We are looking at moving home and getting help to buy for a second time but the builder have told us we can't part Ex and get help to buy? I can't understand why? The way I see it, the builder buys our home, our current help to buy is paid off and we take out a new mortgage with help to buy for our new property? The info on this isn't clear at all? Does it mean the builder them selves can't offer both but we could get help to buy through somebody else? My mortgage advisor has spoke to my mortgage company and Tommy current help to buy company and they have both said we CAN do it, they have no problem with that. It seems the builder is the only one saying we can't?? Any help would be appreciated.

blackbart

cant post links but google "help to buy eligible" , says cant part ex on old home

becominganobsessivesaver

It's because it gives the builders too much opportunity to manipulate the market. They can overpay for the part ex, giving the buyer more equity (and therefore deposit) so they can then overpay for the next house, meaning the government automatically lose on their investment as the actual value of the house (and equity loan) is below the price paid.

alex_163163

Agree with above I'm afraid - HTB website FAQ page clearly says you can't part exchange when buying a new help to buy property.

However if you sell your house on the open market, via estate agent, you can still use HTB on the new property. Can you not look at that? I know it's a bit more time consuming and costs a bit more in fees, but you would be able to buy the new house you want.

kingstreet

Part-ex isn't possible, but an assisted sale/purchase is.

alex_163163

Does your developer offer a 'home change' service, do you know?
A few months ago I was looking at buying a new build with HTB, so couldn't use part ex. However this particular developer offered a service where they arranged for my flat to be put on the market with 3 local agents, and the plot was reserved for 4 weeks whilst we found a buyer.
The developer paid all the EA fees so it didn't cost us anything in that respect. We could then use HTB for the new property,
All we had to do was agree a marketing price with the developer for my current property (based on the 3 agents valuations). This was to try ensure a fast sale at a reasonable price. I was actually very happy with the price we agreed at as it was the same as an independent valuation I had also obtained.

Carlou61

Thanks for the replies everyone. Yeah I'm aware the website says that but I'm just wondering why that's all.

Surely if the price paid by the builder for the part exchange means the gov don't lose on their initial loan amount, what's the problem?

Is there no way around this? We could sell on our own but the length of time that could take and the amount in fees - the part exchange seems a better option.

My mortgage advisor spoke to help to
Buy and the mortgage company and they said it is possible...but not sure wires are crossed.

Carlou61

Alex....I believe they do something that sounds like that called 'express mover'...sounds very similar. I'll speak to them about that. Thanks.