Help to Buy Solicitors

The Help to Buy ISA scheme was a government initiative that offered high interest rates and matched contributions towards the purchase of your first flat or house. While the scheme closed in November 2019, those who opened an account before this time can still benefit from a 25% bonus to their deposit when buying a home.

JMW's residential real estate solicitors specialise in the conveyancing process when buyers wish to take advantage of a Help to Buy account as part of a flat or house purchase. If you are saving with the scheme and are ready to purchase your first home, you will need to work with experienced conveyancing solicitors who understand how the scheme now operates and how to deliver the bonuses you are entitled to.

If you wish to sell a Help to Buy property, the equity loan must normally be repaid and we can also deal with the legal repayment process on your behalf, providing the required legal undertakings, transferring repayment funds on completion and liaising with administrators.
For advice and assistance from our Help to Buy solicitors relating to all aspects of the scheme, call 0345 872 6666, or complete our online enquiry form and we will get back to you.

How JMW can help

The residential conveyancing team at JMW has years of experience in property matters, including dealing with mortgage lenders and the technical aspects of conveyancing. Our Help to Buy solicitors are knowledgeable on all areas related to the scheme and the latest changes, and our no-nonsense advice can help you decide the best option for you and your family.

When you contact us, you will be able to discuss your situation with an expert property solicitor. The Help to Buy scheme can involve complex processes, particularly now that it is closed to new applicants. We can advise you on how to redeem the government bonus and make the other aspects of your transaction as smooth as possible by assisting with Land Registry and Stamp Duty Land Tax returns.

JMW's property conveyancing solicitors offer specialist help on a range of matters connected to buying a property, alongside the fundamental requirements before and after the sale completes. We will be able to explain the process to you in easy-to-understand terms, to give you the confidence to make decisions and work towards success. Discuss all of the affordable housing options available, as well as their pros, cons, costs, legal implications and help to buy solicitor fees with JMW.

Meet our team

JMW’s real estate residential team offers expert Help to Buy redemption and conveyancing advice for first-time buyers taking their first steps on the property ladder. When you sell the property, we can also arrange the repayment of a Help to Buy equity loan. Solicitors at JMW will stand by you from the start of the process until your completion date.

What do JMW's Help to Buy conveyancing solicitors do?

Help to Buy conveyancing means taking care of the legal requirements of transferring ownership of a property for buyers and sellers who are using the former government Help to Buy scheme. While the scheme is no longer open to new applicants, account holders can still pay into their account until November 2029, and claim a 25% bonus on their deposit until November 2030. As such, buying your own home with a Help to Buy loan demands a conveyancing solicitor who can navigate the closed scheme and its legal requirements.

As well as helping new buyers to purchase through the scheme, our Help to Buy solicitors also deal with existing equity loans and the need to repay them when properties are sold. JMW offers expert support based on our experience of how the Help to Buy restrictions and redemption procedure interact with ordinary conveyancing transactions when an owner sells. For example, Homes England will not issue the Authority to Complete on a sale until the required legal undertaking and repayment arrangements are in place, and we can support you to implement the necessary requirements to move towards completion.

Whether you are looking to make a mortgage application and redeem a Help to Buy bonus, or need support with the legal aspects of selling a property purchased using an equity loan, speak to the experts at JMW today.

What happens when you sell a Help to Buy property?

If you purchased a property using the Help to Buy equity loan scheme, you must repay the equity loan in full when you sell the property, or when the equity loan term ends, normally after 25 years. When the repayment is triggered because you are selling the property, this can have significant implications for the purchase price and financial position of your property.

This is because the amount you will repay is calculated using the percentage of the property that your loan funded, rather than you simply repaying the original amount you borrowed. The calculation uses either the property's current RICS market valuation or the actual sale price, whichever is higher.

As such, if your original loan was for 20% of the property's value, you must repay 20% of the current value when you sell it, even if this is more than the original loan was worth because property prices have increased.

To avoid this, you can choose to repay the loan earlier. You can either redeem it completely or make a part repayment, generally of at least 10% of the property's current market value. There is no early repayment charge, although administration, valuation and legal costs apply.

In any case, you must work with an experienced conveyancing solicitor to make the conveyancing process as stress-free as possible, because the equity loan needs to be dealt with as part of the conveyancing process.

You will normally need to commission a RICS valuation and submit the repayment application and valuation together with the memorandum of sale. A Help to Buy administrator then produces a redemption figure which represents the money you owe.

Your solicitor will provide the required legal undertaking and obtain an Authority to Complete to allow the sale to move forward. On completion, our solicitors use the sale proceeds to repay the Help to Buy equity loan, along with any relevant outstanding interest, fees or arrears. Once everything has been repaid, we can remove the Help to Buy charge from the property's Land Registry title.

What were the different aspects of the Help to Buy equity loan scheme?

The Help to Buy scheme is fully closed to new applicants, but some aspects could still be relevant when buying or selling a property. The original scheme was divided into the following aspects:

Help to Buy ISA

The Help to Buy ISA is a savings account designed to support the purchase of a first home. While this scheme is closed to new accounts, those who opened a Help to Buy ISA before 30th November 2019 can continue saving up to £200 per month until November 2029. When you buy a property worth up to £250,000 (or up to £450,000 in London) the government contributes a 25% bonus to your savings, up to a maximum of £3,000.

Your conveyancing solicitor will make an application for funding when you pay your deposit. The government bonus cannot be used for other purposes or to cover administrative costs (such as fees for conveyancing searches).

Help to Buy equity loans

As of 2023, Help to Buy equity loans are no longer accepting new applications. This part of the scheme helped eligible buyers to purchase a new-build property, with the government lending up to 20% of the property's purchase price (or up to 40% in London). The buyer provided at least a 5% deposit and used a mortgage for the rest. This still has implications for buyers who purchased through a Help to Buy equity loan and now wish to sell their property.

Shared ownership

Shared ownership gives you the option to buy between 10% and 75% of a newly constructed home if you cannot afford a mortgage for the entire property, and pay rent on the remaining share. Later on, you can purchase more shares (a process known as "staircasing"). This is no longer part of the Help to Buy scheme and is still available to new applicants.

Learn more about dedicated shared ownership schemes currently available.

Is the Help to Buy process for buying a house different from normal conveyancing?

The Help to Buy conveyancing procedure is identical to standard conveyancing, with the exception that your solicitor must apply for the government bonus on your behalf. There are additional eligibility requirements that apply - for example, you must be a first-time buyer - and a solicitor can advise you of these. You must also choose a property with a maximum price of £250,000, or £450,000 for properties in London.

For further information on what to expect from the conveyancing process, read our guide to buying a property or get in touch with our team.

How long does the Help to Buy conveyancing process take?

The conveyancing process is different in every case. Even from the point that you have agreed a mortgage and hired a solicitor to handle the conveyancing, the time it will take to complete varies based on certain elements, such as:

• The time needed to finish a final draft of the exchange contracts
• The three to five working days it takes to get your authority to exchange so you can trade contracts
• The amount of time it takes to build a property (the developer should give you an idea of when this will be)
• The 12 days it takes for Help to Buy funds to be released to the developer

Standard mortgage offers last between three and six months, so it is important to make sure your mortgage does not expire before the purchase is final. Our team understands the nuances of this process and our Help to Buy solicitors assist clients to make sure all the necessary deadlines are met.

Restrictions of the Help to Buy scheme

There are a number of restrictions that may prevent you from claiming the government bonus under the Help to Buy scheme. The property you wish to buy must be for your own use (i.e. you cannot sublet it to someone else), and your mortgage must include repayments and not just be interest-only. Other examples of restricted mortgages include offset and guarantor.

If you need advice on any aspect of the scheme, contact our Help to Buy conveyancing solicitors today and we will provide the information you need.