Help To Buy Equity Loan Cut Off Date

JRG_4

Hi,
I know i've seen online that the scheme is running from March 2021 for FTB's only. There Is a December 2020 cut off point to for new builds to be complete. Does anyone know whether this for everyone or is this just for people that aren't first time buyers? We are putting in an application for the equity loan but our house won't be built until Feb 2021. I'm now worried this won't go through.

Dinpraad

i am afraid it wouldnt as per current HTB rules. We are all hoping there will be announcement by Homes England of an extension as result of the COVID. Current scheme will be replaced by a new scheme which will have regional caps so depending on whether the property in question will be capped or not will determine whether you wouldnt be affected.

JRG_4

Dinpraad said:

i am afraid it wouldnt as per current HTB rules. We are all hoping there will be announcement by Homes England of an extension as result of the COVID. Current scheme will be replaced by a new scheme which will have regional caps so depending on whether the property in question will be capped or not will determine whether you wouldnt be affected.

Even though as FTB's we still qualify for the new scheme in April it still wouldn't go through?

[Deleted User]

The new scheme isn't just for ftb only, there is also a regional cap on the value of property that can be purchased.  
It's a completely different scheme

JRG_4

Deleted_User said:

The new scheme isn't just for ftb only, there is also a regional cap on the value of property that can be purchased.  
It's a completely different scheme

We are in west-midlands. The house in question is 154,950. The cap for WM is £255,600.

Dinpraad

Well if its a new build and its at that price you should not be affected then

JRG_4

Dinpraad said:

Well if its a new build and its at that price you should not be affected then

Yeah its a new build. Just didnt know whether the December 2020 cut off build date would apply to everyone.

Walrus123

I keep seeing people referencing this December 2020 completition deadline. Where has this date come from? I have read through all of the gov.uk Help to Buy Guidance and can find no mention of December 2020. My understanding was that the scheme finishes in March 2021. Can somebody please point me to where it is officially stated that the house must be complete in December 2020 to be eligible for the scheme?

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/895107/Help-to-Buy-Buyers-Guide-June2020-FINAL.pdf

I cannot find it mentioned at all but lots of people keep bringing up December 2020 as a deadline. We are due to complete in October, so obviously, this is close for comfort..

Dinpraad

Walrus123 said:

I keep seeing people referencing this December 2020 completition deadline. Where has this date come from? I have read through all of the gov.uk Help to Buy Guidance and can find no mention of December 2020. My understanding was that the scheme finishes in March 2021. Can somebody please point me to where it is officially stated that the house must be complete in December 2020 to be eligible for the scheme?

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/895107/Help-to-Buy-Buyers-Guide-June2020-FINAL.pdf

I cannot find it mentioned at all but lots of people keep bringing up December 2020 as a deadline. We are due to complete in October, so obviously, this is close for comfort..

https://www.bellway.co.uk/buying-with-bellway/help-to-buy

https://www.mortgagestrategy.co.uk/analysis/housing-watch-helped-to-buy/

https://www.helptobuyagent1.org.uk/media/30458/homes_england___help_to_buy_builders_participation_guidance.pdf

READ SECTION 11B

Walrus123

Thank you very much - why this isn't stated anywhere in the consumer guidance or even my contract with Homes England is very worrying. It's clearly there in the builders guidance:

Homes England’s next financial year (1st April 2020 to 31st March 2021): (i) All Plots must be build complete by 31st December 2020; and (ii) The Buyer must have legally completed their purchase of the Help to Buy property on or before 31 March 2021

At least its not legal completion by December - but what do they count as being 'build complete'? Our house is largely complete but we can't move into it until they finish the street as its at the end of a road of partially complete properties.

RelievedSheff

Walrus123 said:

Thank you very much - why this isn't stated anywhere in the consumer guidance or even my contract with Homes England is very worrying. It's clearly there in the builders guidance:

Homes England’s next financial year (1st April 2020 to 31st March 2021): (i) All Plots must be build complete by 31st December 2020; and (ii) The Buyer must have legally completed their purchase of the Help to Buy property on or before 31 March 2021

At least its not legal completion by December - but what do they count as being 'build complete'? Our house is largely complete but we can't move into it until they finish the street as its at the end of a road of partially complete properties.

I would say that build complete would be when it has been CMLed and signed off.

Whether Homes England agree with that is another matter.