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Forces Help to Buy - HELP

5 replies 52 views
Hello
Can someone help me decipher Point D of this, we've done the calculations for sentence one and sentence two but unsure how these two numbers interact or what this means for our entitlement. We have barely any of the capital leftover from the sale so unsure how this will be taken into account.
Thanks

Replies

  • edited 19 October at 9:24AM
    oldbikeblokeoldbikebloke Forumite
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    edited 19 October at 9:24AM
    in that context "ablated" means reduced by, so:
    FHTB is limited to a max of £25,000
    under D) that max will be reduced to the answer from the calculation:
     Purchase price -  mortgage obtained - capital from sale of previous property = £x
    if x = <25,000 then the FHTB will be £x 

    Capital from sale being: price sold less outstanding mortgage, ie your "equity" (or as some think of it your "profit".)
    I have ignored costs as those are the same for all the conditions  

    the point being HTB is intended to provide what would ordinarily be the "deposit" you would have to put down yourself. Obviously therefore if you have a lump sum from the sale of a previous property, it is only right that you are "made" to reinvest that lump sum in your next purchase, hence the amount of FHTB is reduced by your "capital". 
    In case you spent that capital from the previous house that is why it only looks back for sales within the last 12 months, if you sold within 12 months and blew that money then you are treated as though you still had it. If longer than 12 months, you aren't.  

    If I include a blue link in my post, click and read it before posting a follow up question. The answer will be in the link.
  • ZKA28ZKA28 Forumite
    11 posts
    First Post
    Hi, thanks. 

    We understand the term Abated by and have done the calculations for this sentence; however, there is a second sentence with no mention of capital. My question was how these two sentences relate to each other as it is not clear.

    Our calculations are as follows:
    - Sentence one : £20,000
    - Sentence two : £77,000

    Thanks
  • edited 20 October at 7:15AM
    oldbikeblokeoldbikebloke Forumite
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    edited 20 October at 7:15AM
    ZKA28 said:
    Hi, thanks. 

    We understand the term Abated by and have done the calculations for this sentence; however, there is a second sentence with no mention of capital. My question was how these two sentences relate to each other as it is not clear.

    please quote the entire section you don't understand, there are many sentences across points referenced a) - f), so the "second sentence" is not identifying your concern.
    If I include a blue link in my post, click and read it before posting a follow up question. The answer will be in the link.
  • ZKA28ZKA28 Forumite
    11 posts
    First Post
    Hey,
    As above, only referencing point D) and there are only two sentences contained in this point.
  • edited 21 October at 9:15AM
    oldbikeblokeoldbikebloke Forumite
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    edited 21 October at 9:15AM
    the second sentence is word for word a repeat of C), and simply seems to be setting out how they define the net "purchase price" after having taken account of the various deductions from it mentioned

    why they feel the need to repeat such a definition in d) is a mystery. It is not an alternative to the value of d, ie net of the capital. It simply seems to be there to emphasise the start point of that calculation, ie that you must use the "net" purchase price  and deduct capital from that

    strange way of doing it, as definitions would be better in their own section 

    If I include a blue link in my post, click and read it before posting a follow up question. The answer will be in the link.
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