Help to Buy – Is the current scheme ending?
The current Help to Buy scheme is set to end on the 31st March 2021.
Under the scheme, the property previously had to be built by the builder by the 31st December 2020 for buyers to qualify to use this scheme. However, due to COVID-19 the government have extended this deadline to the 28th February 2021. This means that you can still use the current Help to Buy scheme if the builder is able to complete the house ready for you to move in to by the 28th February 2021.
Some buyers may be allowed more time to buy and move into the home and for the builder to finish building if you reserved the property before the 30th June 2020. If you reserved before the 30th June 2020, you may be able to complete the purchase and move into the property up to the 31st May 2021. However, this is only if severe delays have been caused due to COVID-19. This may not apply to all buyers and you should discuss this with your builder if you are concerned
If you have reserved after this date, the property must be built and ready for you to move in to by the 28th February 2021. If the property does not complete before this time you will not be able to get the equity loan funds. We would recommend discussing the anticipated completion date with your builder.
If you are unable to complete your purchase on time due to being unable to get the equity loan funds, the builder must unconditionally release you from the contract, the only exception is if you reserved prior to the 30th June, as you may be entitled to complete up to the 31st May 2021.
If the purchase does not go ahead, the builder must return the reservation fee but may be entitled to deduct reasonable charges, but they must inform you of this. You will have to pay any legal fees and/or any financial advisor fees, if applicable.
We would advise you to contact your builder to discuss the anticipated build date of the property you have reserved and whether any extension is needed.
A new Help to Buy Scheme will start on the 1st April 2021 and this will end on the 31st March 2023.
Please contact our residential property department on 01942 206060 if you have any concerns.