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HTB and shared ownership?

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RealElement47
RealElement47 Posts: 180 Forumite
in House buying, renting & selling
Can you apply for 40% HTB in London for a shared ownership house?
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  • scd3scd4
    scd3scd4 Posts: 1,180 Forumite
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    I don't think you can mix the two.


    With shared ownership you buy a minimum of 25% and pay rent on the other 75%
    My daughter purchased 50%


    HTB is very different.


    London Help to Buy

    To reflect the current property prices in London, from 1 February 2016 the Government is increasing the Help to Buy: Equity Loan scheme’s upper loan limit from 20% to 40% for buyers in all London boroughs.
    How does it work?

    The London Help to Buy scheme could help you realise the dream of owning your own home in the capital. When you put down as little as a 5% deposit on a newly built home, you can get a Government equity loan – for up to 40% of the purchase price.
    Example: for a home with a £400,000 price tag
    london-htb-example-FINAL.png




    If the home in the example above sold for £420,000, you would get £252,000 (60%, from your mortgage and the cash deposit) and you would pay back £168,000 on the loan (40%). You would need to pay off your mortgage with your share of the money.
    You won’t be charged loan fees on the 40% loan for the first five years of owning your home.
    Aldermore, Bank of Scotland, Barclays, Halifax, Leeds, Lloyds, Nationwide, NatWest, Newcastle, Royal Bank of Scotland, Santander, Teachers and TSB offer London Help to Buy.
  • ethank
    ethank Posts: 2,197 Forumite
    Holiday Haggler I've been Money Tipped!
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    You can only use HTB for a purchase - not for shared ownership
  • RealElement47
    RealElement47 Posts: 180 Forumite
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    ethank wrote: »
    You can only use HTB for a purchase - not for shared ownership
    Are you sure?

    Is there a link?

    There are some changes coming in, making help to buy better for first time buyers.

    There are many private sales of former shared ownership wanting to sell there share and move, surely a ftb could use HTB on one of those?

    Can anybody else clarify the matter?
  • diggingdude
    diggingdude Posts: 2,445 Forumite
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    How could you use htb on a second hand shared ownership property? I think you are misreading the bit about new build property
    An answer isn't spam just because you don't like it......
  • RealElement47
    RealElement47 Posts: 180 Forumite
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    diggingdude wrote: »
    How could you use htb on a second hand shared ownership property? I think you are misreading the bit about new build property


    Ok only on new builds?
  • RealElement47
    RealElement47 Posts: 180 Forumite
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    Somebody did in London the newest HTB schemes can be used on shred ownership
  • Caz3121
    Caz3121 Posts: 15,545 Forumite
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    RealElement47 wrote: »
    Somebody did in London the newest HTB schemes can be used on shred ownership
    have you asked them for further information? the shared equity and shared ownership appear to be different schemes
    Information on both options here > https://www.helptobuy.gov.uk/equity-loan/equity-loans/
    https://www.helptobuy.gov.uk/shared-ownership/
  • da_rule
    da_rule Posts: 3,618 Forumite
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    RealElement47 wrote: »
    Somebody did in London the newest HTB schemes can be used on shred ownership

    Whoever you are speaking to is confused.

    There are two schemes, Help to Buy: Shared Ownership and Help to Buy: Equity Loan. They are separate schemes and cannot be used together.

    The HTB ISA can be used on either.
  • seven-day-weekend
    seven-day-weekend Posts: 36,755 Forumite
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    So...help to buy....shared ownership? Will they ever have any equity in this property?
    (AKA HRH_MUngo)
    Member #10 of £2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
  • ethank
    ethank Posts: 2,197 Forumite
    Holiday Haggler I've been Money Tipped!
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    You cannot get an equity loan on Shared Ownership. Shared ownership you would be buying a share of a property and paying rent on the remainder you do not own. Equity loan - you own the property but have to repay the loan back.

    https://www.helptobuy.gov.uk/shared-ownership/
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