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Selling a help to buy - advice needed!
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Emlulo
Posts: 22 Forumite
I am selling my house that was purchased via the help to buy scheme. I will need to pay back the 20% loan from the scheme at the point of sale, BUT I don’t know if this 20% is based on what the RICS valuation says OR the actual sale price. I understand that the RICS valuations can be very conservative, and therefore I hope to sell for a fair bit more (fingers crossed - might be wishful thinking!)
The mortgage brokers I have spoken do not agree on this, and I can’t get through to the help to buy helpline for love nor money! If anyone has any experience in having sold a help to buy I’d love to hear what the 20% was based on! TIA!
The mortgage brokers I have spoken do not agree on this, and I can’t get through to the help to buy helpline for love nor money! If anyone has any experience in having sold a help to buy I’d love to hear what the 20% was based on! TIA!
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If you are selling imminently you will have difficulty explaining away a difference between sale price and RICS valuation. If you think you can sell for more than valuation, then buy out the help to buy based on a RICS valuation before you start selling the property.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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If you read the fine print it will say “20 % of sale price or RICS valuation - whichever is higher”.2
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You pay it on whatever is higher, RICS or sale price. So you couldn't sell if off cheaply to a friend to pay less back for example.
We sold our property with HTB loan on it last year. The RICS valuation said 160k, but we sold it for £188k so paid the 20% off the sale price.
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Redemption on sale is HIGHER of valuation or sale price.
On remortgage, it's based on valuation only.
We have a current remortgage case where Nationwide's surveyor valued the property at £500k but the borrower's valuation came back at £490k. Net result, £6,000 saved.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Great - thanks all!0
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