Government’s Help to Buy application deadline brought forward by 2 months

Category: Residential Property

Recently, there has been a big announcement relating to a change to the Government Help to Buy (Equity Loan) Scheme’s deadline.

If you are a First Time Buyer looking to purchase a new build property in England and Wales, you will have almost certainly heard of the Government’s Help to Buy Equity Loan Scheme.

The Scheme is available for the purchase of new build properties from certain developers up to a maximum price (dependent on the region). You must be able to afford a 5% deposit and the fees associated with the purchase (think solicitors fees, mortgage application fees etc.) to have your application approved.

Happy young first time buyers

5 Things You Need to Know About the New Help to Buy Deadline

We have compiled some of the key information below:

1. The Basics

Homes England, who run and administer the Help to Buy Equity Loan Scheme, have recently confirmed that the Scheme is coming to an end two months earlier than initially advertised.

Similarly, the application for Help to Buy’s deadline has been brought forward to try to ensure that there is sufficient time to complete the purchase before the scheme closes.

2. Application Deadline

All applications to the Equity Loan Scheme must be received by Homes England by 6pm on 31 October 2022.

3. Practical Completion Deadline

The property must be ‘ready for practical completion’ by 31 December 2022. This means that the property must be built and ready to be lived in.

4. Legal Completion Deadline

You must have legally completed on or before the date that the Scheme closes on 31 March 2023.

5. What the Developer Can’t Complete by The Deadline?

When discussing your options with the developer, they should inform you in the first instance whether or not they will be able to meet the new deadlines. It would be recommended that you specifically ask the question before reserving or committing to purchase any property.

If the developer cannot meet the above deadlines, you will not be able to use the Help to Buy Scheme to purchase the property in question.

Homes England have not yet released any further advice as to what will happen if you are mid-way through a transaction when it becomes apparent that the deadlines cannot be achieved. If there is any uncertainty as to whether the dates can be achieved, it is likely that the Scheme will not be available or approved for the desired purchase.

If you cannot use this Scheme, you will need to consider what other options are available to you in terms of funding. The Government very well may provide further advice closer to the end of the application deadline.

What To Do Next

If you are looking to make the most of the Government’s Help to Buy Equity Loan Scheme before the deadline passes – why not click below to generate a quote or request a call back from one of the team?

generate a quote

For more information on how the Help to Buy Equity Loan Scheme works, please click the following link: Government Schemes

Alternatively, if you would like to speak to one of the team to discuss your options in more detail please call: 01752 827069 or request a callback.