If you are looking for an experienced Help to Buy solicitor in Devon or Somerset then Slee Blackwell are here to help you.
Help to Buy is a scheme that is funded by the government to assist people in purchasing their own home.
The scheme will only operate for a limited period of time, but due to its popularity it has recently been extended.
Under the Help to Buy scheme the government will provide the purchaser with funds to purchase their new home with the aid of an Equity Loan.
The maximum sum available under the Help to Buy scheme in England is currently £120,000. A higher figure is available in London.
To take advantage of the Help to Buy scheme you must be able to fund a deposit of at least 5% of the cost of the property you are buying. A mortgage makes up the balance of the purchase price.
After 5 years an annual fee of 1.75% is charged on the amount of money loaned to you by the government. This payment is linked to the Retail Prices Index (RPI) plus 1%.
The Help to Buy loan has to be repaid after 25 years, or earlier if the property is sold.
When repayment is due the sum required will be based on the proportion of the market value of your home that was funded under the Help to Buy scheme. This will reflect the value of your home when repayment is made. So if your property increases in value while you own it the amount to be repaid to the government will increase proportionally.
For full details of how the scheme operates and whether your proposed purchase will be eligible visit the government’s helpful website or call our free legal helpline on 01272 372128.