You do not have to sell your home to pay off your Help to Buy loan. You can either repay the loan with cash by way of savings, a gift or by remortgaging. You could also choose to speak with your current Lender or search for a new Lender. It’s good to explore all of your options and find whatever will work best for your own circumstances. It is possible to repay just part of your Help to Buy loan, which is called “Staircasing”.
Once you have secured your funds, you will need to contact Target, who have been appointed the agent for Homes and Communities Help to Buy. You will need to obtain their “Customer Information Pack” which can be obtained here:
https://www.gov.uk/government/collections/manage-your-help-to-buy-equity-loan
The amount repayable is calculated at the current market rate and the valuation/survey of your property will need to be carried out by a RICS (Royal Institute of Chartered Surveyors) Certified Surveyor. www.rics.org/uk. Once you have obtained a valuation this will be valid for 3 months and you should aim to redeem your loan within this time. However, it can be possible to obtain an extension by way of a desktop valuation which would then provide you with an additional 3 months to complete.
Your equity loan is secured against the Title Deeds of your property and requires a conveyancer to legally remove this Charge and if you are remortgaging, to add your new Mortgage to your property. You will need to provide Target and your Mortgage Lender with a Solicitors details so that they can send the paperwork and requirements for review. QualitySolicitors Parkinson Wright will ensure that all the necessary and legal requirements are followed and that the completion of the redemption and remortgage goes smoothly.
If you think it is time to redeem your loan and get more from your home, please don’t hesitate to contact a member of our award winning conveyancing team for more information on 01905 721600 or via email worcester@parkinsonwright.co.uk