Help to Buy

loz2001

I have put a deposit down for a house I am wanting to buy using the help to buy scheme (I'm not a first time buyer).  Due to Covid19 the house completion  date has now moved to Spring 2021, the housing company state that the sale must be completed by 31st March 2021 in order for me to use Help to Buy.  I wonder if anyone is aware as to whether the government may extend the current end date of March 2021 (for non first time buyers) due to Covid19, to stop me and others losing homes they have put security deposits on? 

Thanks in advance. 

Dinpraad

Seems everyone is waiting to hear whether the current scheme is extending 

bucksbloke

I've said this countless times over the last few weeks, the builder is giving you the wrong info. Under the current scheme  (see below for the rule) if the house has not had NHBC sign off before 31 Dec 2020 it won't qualify for current HtB support, although you don't have to complete the sale until 31 March 2020. So if the house is not build complete on 1 Jan 2021 then you are too late. 

If you apply under the new scheme then all applicants will also need to be a first time buyer in addition to the price cap. It looks like you won't qualify for the scheme based upon what you said. 

I can imagine that housebuilders are lobbying like mad to get an extension to the current HtB scheme as there is a lots of houses which have been delayed as a result of COVID. May be try speaking to your MP and ask them to lobby the Secretary of State for Homes and Communities for an extension of the current scheme due to COVID. The more noise that is made about this issue, the more chance there is of something happening. 

Lisajp1

bucksbloke said:

I've said this countless times over the last few weeks, the builder is giving you the wrong info. Under the current scheme  (see below for the rule) if the house has not had NHBC sign off before 31 Dec 2020 it won't qualify for current HtB support, although you don't have to complete the sale until 31 March 2020. So if the house is not build complete on 1 Jan 2021 then you are too late. 

If you apply under the new scheme then all applicants will also need to be a first time buyer in addition to the price cap. It looks like you won't qualify for the scheme based upon what you said. 

I can imagine that housebuilders are lobbying like mad to get an extension to the current HtB scheme as there is a lots of houses which have been delayed as a result of COVID. May be try speaking to your MP and ask them to lobby the Secretary of State for Homes and Communities for an extension of the current scheme due to COVID. The more noise that is made about this issue, the more chance there is of something happening. 

Are you sure this is right? This seems to be aimed at the provider rather than the buyer, as though the developer will have their right to offer help to buy taken from them. It’s so misleading though. I’ve had my htb approved for a house completing in December and I’m worried I’ll lose the funding should it be delayed a few weeks.  I’ve read all my documentation and forms and can’t find anything in the terms and conditions about it being signed off by NHBC by 31st December. Even the official htb website update states that as long as you complete by 31st March 2021 then it’s ok.  I’m waiting for further advice from the htb agent and solicitor as I’m not exchanging contracts if there’s a chance the equity loan will be withdrawn. 

It seems crazy that the loan can be withdrawn once it’s all been approved and you’ve exchanged contracts.

bucksbloke

@Lisajp1 - Yes, I am absolutely sure it is correct. You are right it is aimed at the provider, but if the provider doesn't get the 20% from the Government - then the buyer doesn't get a house. 

Help to Buy pay their share of the money direct to the developer and the above states in order to fit into the Financial Year April 2020 to March 2021, your house must be build complete by 31 December otherwise the HTB funding will be withdrawn on the property.

This has not really been a problem before - because the funding would just have been moved to the next financial year, but the problem is from the start of the next financial year in April 2021 - HTB has been capped to first time buyers only and also there are regional caps on house prices. 

Ask your developer. They will tell you that the advice above is correct. I would imagine that builders are going hammer and tongs to get houses completed before this deadline, and there is lots of lobbying going on by housebuilders to delay the change to April 2022. 

If the dates don't fit in to the above, then I'm not sure that the HTB Agent would give ATE (Authority to Exchange) anyway. 

loz2001

Thanks for all your comments, I have emailed by local MP with zero response so far.  I guess I will have to sit tight and see if we get an extension on the HtB

Dinpraad

with no announcement in the Chancellors statement what hope is left if any?

JRG_4

I’m a first time buyer and the property is well below the cap for my region. Does anyone know whether the deadlines would apply to me? Our build completion is December but could run into January.

Dinpraad

https://www.ft.com/content/73e5c6e3-4f0b-44eb-a5ce-e038fdda10b9

Dinpraad

https://www.gov.uk/government/news/help-to-buy-scheme-extended