Repaying Help to Buy Loans
1. Visit the HTB website:
If you are looking to redeem your loan the first step is to visit the My First Home website for Help to Buy. Here all the specific forms and details are easily identified and the steps are explained below. Help to Buy are represented by a company called Target HCA. The following link will take you directly to the website. https://www.myfirsthome.org.uk/iwantto/redeem/
2. Obtain a property valuation:
The first step is to obtain a RICS valuation of your property. The criteria for this can be found directly on the Help to Buy website and you can also use the following website to look for a particular company. www.RICS.org.uk
A valuation report will be prepared which is valid for 3 months. If this time elapses you may need to carry out another valuation on your property.
3. Appoint an experienced solicitor:
It is a requirement of Target HCA to instruct a Solicitor who will assist you with the redemption process.
4. Complete the loan redemption form:
To initiate the redemption process you need to complete the relevant form. Within the initial instructions on the My First Home website there is a Loan Redemption Form. You must complete and return this form to Target HCA, enclosing the administration fee required. The form will ask details of the Solicitors who are acting and also your RICS valuation report.
5. Review the pack and redemption letter:
Once Target HCA has received your completed form, fee and valuation they will produce a redemption pack. This is sent both to yourself and to your acting solicitors. The pack entails a letter with details of your repayment figure and a guidance pack with the forms your solicitors need to complete.
6. Prepare to complete:
Once this pack has been received and any further details such as mortgage offers or savings details etc. have been dealt with you will be in a position to complete. Target HCA require 15 workings days notice for completion to take place. This is where your solicitor will complete a legal undertaking in letter format, also known as a solicitors promise, directly to Target HCA requesting completion for your agreed date.
If completion does not take place by the specified date, or if there is a delay of any sort a new undertaking will need to be provided by your solicitor.
Authority to Complete:
Once the solicitors undertaking has been provided Target HCA have 5 days to issue an Authority to Complete. This is their confirmation they are happy for completion to take place on the specified date and will know to expect the funds required to pay back your loan.
On the day of completion your solicitor will send through the funds to Target HCA to redeem your loan. This will be verified by Target HCA to confirm it matches what was included within their Authority to Complete. Once this has taken place the charge to Homes and Communities Agency will be removed from your property register. If you have partially paid off your loan you will receive a memorandum of stair-casing confirming the remaining equity mortgage percentage outstanding.