Help to buy equity loan - Anyone know about this?

flexwing

Member
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256
Sounds like you're in the trade! As a HA we like shared ownership but this was discontinued some time ago as it requires grant from the Gov't which essentially remains with the HA and limits subsequent sale of the property to qualifying people. Not so good for purchasers as the occupancy charge can be quite high.
Shared equity is actually better for purchasers as they dont pay much for the balance after the 5 year period.
 
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6,001
Some of the H2B are portable.
That is if you have used it and are in a house/flat and you move to another then the H2B can go with you.
This is not true for every H2B
 

Simon1963

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819
My son bought a house with H2B 3 years ago. He only had 5% deposit on a £240k house and the H2B topped him up. It got him the house he wanted and what he saves in mortgage payments with a 80%LTV rather than a 95% he puts in an ISA plus whatever else he can afford each month to pay off the H2B. I think for the younger generation it’s a win win situation especially if they’re renting and trying to save for a deposit.
 

Wanderer

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5,791
I got HTB for my place in Wakey four years ago - always a renter since I moved about a lot with work. Had to move quick on this otherwise homeless and I'm not even joking, ended up with a six week gap I had to fill with an AirBnb, that cost me 5k....

So took the easy way and I think the HTB bit ends next year but hopefully I'll be 100% UK free by then and just flog the place.

It served it's purpose for me at a stressful time so cannae complain.
 

JSP214

Member
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131
This is my wife’s thing as she sells new builds.
If you want HTB then the builder has to be registered. You mentioned that the builder wasn’t registered. So effectively they have missed the boat and you won’t get HTB on that property.

She said that you won’t get another builder who is registered for HTB to register the property in their name as technically it’s fraud.

As was mentioned. Liquidate assets to get the difference if you can. Including the Maser. You can always get another.
That's just the info I was after. I thought as much to be honest but wanted to check before dismissing it out of hand. Thank you.
 

JSP214

Member
Messages
131
I've had to smile at the irony.... I ask if anyone knows about the H2B Equity Loan and provide a bit of background to my situation and the overwhelming advice from the Maserati forum, is to sell the Maserati!!! :p
 

JSP214

Member
Messages
131
I understand where you're all coming from but if the government are going to give us £100k+ interest free for 5 years, why wouldn't we take them up on it? Yes we'll need to pay it back but we'd have saved the interest.

As it turns out we can't, so we'll stay where we are. It's by no means a disaster, the place we viewed was nicer than where we are currently. Just not nice enough to warrant radically cutting back on other areas of our life. (Hence our interest in the H2B Equity loan).

On the point of new builds being rubbish. As a generalisation I agree, which is why my previous 2 houses were both Victorian. However, not all new builds are built by Persimmon/David Wilson etc. A small number, (admittedly), are individually built to a very high standard. The property we viewed yesterday for example, had been commissioned by a guy who'd intended to move in once completed but due to unforeseen circumstances he was forced to change his plans and sell it instead.
 

Simon1963

Member
Messages
819
I got HTB for my place in Wakey four years ago - always a renter since I moved about a lot with work. Had to move quick on this otherwise homeless and I'm not even joking, ended up with a six week gap I had to fill with an AirBnb, that cost me 5k....

So took the easy way and I think the HTB bit ends next year but hopefully I'll be 100% UK free by then and just flog the place.

It served it's purpose for me at a stressful time so cannae complain.
Nice one
 

schell70

Member
Messages
313
I'd be careful with new builds at the moment - typically they are overpriced and then if you are looking at a high LTV it is likely that the Mortgage company will undervalue it or actually value it correctly! I have a friend who had recently thought they had a good deal on a new build and it was then valued at £50k under the £750k they did a deal on from the £800k it was originally at. Now they can't buy it becuase of the low valuation. Seeing lots of this lately.
 

JSP214

Member
Messages
131
I'd be careful with new builds at the moment - typically they are overpriced and then if you are looking at a high LTV it is likely that the Mortgage company will undervalue it or actually value it correctly! I have a friend who had recently thought they had a good deal on a new build and it was then valued at £50k under the £750k they did a deal on from the £800k it was originally at. Now they can't buy it becuase of the low valuation. Seeing lots of this lately.
Yes I suspect it's related to the Stamp Duty holiday, as daverichardson mentioned in his post earlier.

House buying - where you get to deal with the holy trinity of banks, estate agents and lawyers all at the same time!
 

flexwing

Member
Messages
256
I wouldn't dismiss new build at all. Although not necessarily built to the same standards as older properties, they are far more energy efficient and likely to require less maintenance in the longer term. Of more concern is the habit of some volume housebuilders to use leasehold to extort extra payments from purchasers for common area maintenance and consent to build extensions etc. Totally outrageous and Lawyers seem to be less than transparent with their clients. In Scotland Feu Superiority was abolished nearly 20 years ago, which had placed similar burdens on owners.