help to buy selling

lennieb2020

hi all i have previously put my help to buy property on the market for what i paid for it which was £275k 4 years ago when it was on the market for 6 months end of last year i had no interest as i believe it was overpriced for the market, seeing as i just wanted it gone and wanted to get my money back out of it so i could move forward with my partner, if it was to sell for less than what i paid for it for example £265k 10k under what i paid for it, does this mean i loose 10K or have to pay the government back?

hippocrates1

lennieb2020 said:

hi all i have previously put my help to buy property on the market for what i paid for it which was £275k 4 years ago when it was on the market for 6 months end of last year i had no interest as i believe it was overpriced for the market, seeing as i just wanted it gone and wanted to get my money back out of it so i could move forward with my partner, if it was to sell for less than what i paid for it for example £265k 10k under what i paid for it, does this mean i loose 10K or have to pay the government back?

You pay the government 20% back of the sale price. 

lennieb2020

thank you i had 40% help i believe does this matter? if so do i get my deposit back out of it or do i loose out on anything or own government anything?

Seashell517

lennieb2020 said:

thank you i had 40% help i believe does this matter? if so do i get my deposit back out of it or do i loose out on anything or own government anything?

You will pay back 40% of either the selling price, or the value determined by a RICS surveyor, whichever is higher.

So if the surveyor thinks it's worth £265k too, then you will get back £265k - £106k to repay help to buy - whatever is left on your mortgage.

hippocrates1

lennieb2020 said:

thank you i had 40% help i believe does this matter? if so do i get my deposit back out of it or do i loose out on anything or own government anything?

My bad you will give the government 40% of the sales price. The other 60% will be used to pay off your mortgage. If there is any money left over due to equity you have build up you may get money back depending on how much a loss you have sold for vs equity. Don’t forget you will pay the estate agent at least 1% of the sales price. 

I find it worrying that you signed up for such a huge financial commitment without knowing how it works. Even more worrying that you have had your house on the market for 6 months without knowing what happens when it sells. 

lennieb2020

thank you i am struggling to get my head round it a bit so i wouldn't loose out on anything or would i? i.e i would get my deposit back out of the property what i put in or would i have to pay the bank or government back 

p00hsticks

lennieb2020 said:

thank you i am struggling to get my head round it a bit so i wouldn't loose out on anything or would i? i.e i would get my deposit back out of the property what i put in or would i have to pay the bank or government back 

If you're selling for less that you paid for it after only four years I would think it's very unlikely that there'd be much left of your deposit left after selling costs. How much is your outstanding mortgage ? ;

lennieb2020

hippocrates1 said:

lennieb2020 said:

thank you i had 40% help i believe does this matter? if so do i get my deposit back out of it or do i loose out on anything or own government anything?

My bad you will give the government 40% of the sales price. The other 60% will be used to pay off your mortgage. If there is any money left over due to equity you have build up you may get money back depending on how much a loss you have sold for vs equity. Don’t forget you will pay the estate agent at least 1% of the sales price. 

I find it worrying that you signed up for such a huge financial commitment without knowing how it works. Even more worrying that you have had your house on the market for 6 months without knowing what happens when it sells. 

thank you for all your help and advice much appreciated, i thought it would be a good step to get me on the ladder and that property wouldn't decrease in value in 4 years, it was that or rent and thought this to be a better option than paying someone else's mortgage 

hippocrates1

lennieb2020 said:

hippocrates1 said:

lennieb2020 said:

thank you i had 40% help i believe does this matter? if so do i get my deposit back out of it or do i loose out on anything or own government anything?

My bad you will give the government 40% of the sales price. The other 60% will be used to pay off your mortgage. If there is any money left over due to equity you have build up you may get money back depending on how much a loss you have sold for vs equity. Don’t forget you will pay the estate agent at least 1% of the sales price. 

I find it worrying that you signed up for such a huge financial commitment without knowing how it works. Even more worrying that you have had your house on the market for 6 months without knowing what happens when it sells. 

thank you for all your help and advice much appreciated, i thought it would be a good step to get me on the ladder and that property wouldn't decrease in value in 4 years, it was that or rent and thought this to be a better option than paying someone else's mortgage 

Why do you need to move? Could you stay and build equity? 

lennieb2020

hippocrates1 said:

lennieb2020 said:

hippocrates1 said:

lennieb2020 said:

thank you i had 40% help i believe does this matter? if so do i get my deposit back out of it or do i loose out on anything or own government anything?

My bad you will give the government 40% of the sales price. The other 60% will be used to pay off your mortgage. If there is any money left over due to equity you have build up you may get money back depending on how much a loss you have sold for vs equity. Don’t forget you will pay the estate agent at least 1% of the sales price. 

I find it worrying that you signed up for such a huge financial commitment without knowing how it works. Even more worrying that you have had your house on the market for 6 months without knowing what happens when it sells. 

thank you for all your help and advice much appreciated, i thought it would be a good step to get me on the ladder and that property wouldn't decrease in value in 4 years, it was that or rent and thought this to be a better option than paying someone else's mortgage 

Why do you need to move? Could you stay and build equity? 

moved in with my partner as her flat is more suitable and bigger, so my flat is sat there empty for the last year and a half 

Seashell517

lennieb2020 said:

thank you i am struggling to get my head round it a bit so i wouldn't loose out on anything or would i? i.e i would get my deposit back out of the property what i put in or would i have to pay the bank or government back 

You have to pay both the bank and the government back, and then you will also have to pay any estate agent and conveyancing fees as well. You will get what is left. So probably less than you put in if you're selling for 10k less and have only been paying the mortgage for 4 years.

However, you've also had somewhere to live for 4 years.