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Repaying Help to Buy loan before house sale completes
DVN999
Posts: 34 Forumite
Hi all,
Pretty much as the title says really. We are due to sell our house in the next 2-3 months (offer accepted for £330000, now in the hands of the solicitors etc) and will be repaying a HTB loan we took out to purchase the place. If we redeem it on completion, we will be set to repay £66000.
We have a RICS valuation taking place next week and, as we have some savings (about £70000) which are going to be used on the purchase of our next property, we are considering redeeming the HTB loan before the official house sale takes place. Our thinking is that this will: 1. Simplify the Sale/purchase chain process; removing a layer of things to do at completion and 2. Potentially enable us to pay back slightly less if the RICS valuation comes back less than the sale price.
I am fully aware that the repayment conditions are that you pay back 20% of the sale price or 20% of the RICS valuation, whichever higher, but I'm assuming this only applies if you are repaying it with the proceeds of the sale, not as a separate cash transaction, prior to and aside from the sale.
Am I correct??
Thanks in advance for any replies!
Dave
Pretty much as the title says really. We are due to sell our house in the next 2-3 months (offer accepted for £330000, now in the hands of the solicitors etc) and will be repaying a HTB loan we took out to purchase the place. If we redeem it on completion, we will be set to repay £66000.
We have a RICS valuation taking place next week and, as we have some savings (about £70000) which are going to be used on the purchase of our next property, we are considering redeeming the HTB loan before the official house sale takes place. Our thinking is that this will: 1. Simplify the Sale/purchase chain process; removing a layer of things to do at completion and 2. Potentially enable us to pay back slightly less if the RICS valuation comes back less than the sale price.
I am fully aware that the repayment conditions are that you pay back 20% of the sale price or 20% of the RICS valuation, whichever higher, but I'm assuming this only applies if you are repaying it with the proceeds of the sale, not as a separate cash transaction, prior to and aside from the sale.
Am I correct??
Thanks in advance for any replies!
Dave
1
Comments
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Hi there.
Are you able to share an update re your experience here as I am in the same position as I am looking to pay it off with savings before selling it shortly after.0
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