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HTB equity... completion before March

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  • Dinpraad
    Dinpraad Posts: 71 Forumite
    Third Anniversary 10 Posts Name Dropper
    Macklep78 said:
    By way of an update. I spoke to the builder today and they have confirmed that due to the covid 19 delays, the property will not be complete until January. They did, however, say that they are confident that there will potentially be a 3 month grace period, particularly as help to buy scotland has extended their scheme by 12 months earlier this month. I think I'll just sit tight until release date and see where the land lies. I wont be parting with any more cash until I'm 100% that the scheme is going to be extended!!!
    Which developer was this
  • Dinpraad
    Dinpraad Posts: 71 Forumite
    Third Anniversary 10 Posts Name Dropper
    Macklep78 said:
    Long time lurker but looking for some knowledge and experience.

    2 fold really, my wife and I have our heart set on a new build property and want to utilise the HTB equity loan. My wife is a first time buyer, but I am not. Obviously the equity rules change in march/april next year whereby we wouldnt be eligible.

    We have placed a refundable early bird deposit on a plot that we are told is to be released in September with completion due spring 2021. This is where the problem lies... pre april we can qualify for HTB equity, post april we dont!. Purchasing without the equity loan would stretch us further than I would be comfortable with. The fear is obviously committing with the proviso it will be pre March and the housebuilder has verbally stated it will be pre March.. but it's a new build and things can change.

    It's a rock and a hard place. We really want the property and I have investments maturing in 5 years that will cover the equity pay off barring a huge boom in the housing market, so the 5 year interest free will give us more bang for our buck and is a no brainer; but flip side the risk of post April completion terrified me as I am unsure the builder will commit to the completion pre april, and that was pretty much the response I got when I asked.

    Secondly, on release, we are aware of the initial reservation fee, and it states exchange if contracts within 28 days. This is more of an advice question; with my wife utilising the lifetime isa as a first time buyer, can this be used on exchange? Does the whole amount need to be drawn to claim full bonus or can solicitor draw the amount to cover exchange deposit and the rest for completion?

    Its 13 years since I purchased my last property and the htb/bonus schemes never existed, to say I'm rusty is an understatement so any experiences/advice on either points would be greatly appreciated.

    Thanks

    so what now as the Chancellor did not mention any extension to help to buy. will one have to wait till Autumn (October) budget or??
  • Dinpraad
    Dinpraad Posts: 71 Forumite
    Third Anniversary 10 Posts Name Dropper
    @Macklep78 any updates
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