Selling your Help to Buy home
If you want to sell your Help to Buy home, you will need to repay the equity loan you received to purchase the property at the time you sell it (unless you have already chosen to repay the equity loan before this point). The amount you have to pay is based on the market value of your property at that time.
So, if you received a 20% equity loan to purchase your home, you will repay 20% of the value of your home at the time you sell. You must have an independent valuation carried out on the property and it should be sold on the open market at the established valuation.
If the market value of your property falls below the level at which it was first purchased, you will repay less than the original amount the Agency contributed to the purchase. As long as you have complied with all your obligations in the Help to Buy mortgage deed, you will not be required to provide for any shortfall in the equity loan if you sell when values have fallen.
The Mortgage Administrator will collect the Agency’s repayment, and they must be informed if you are planning on selling your home as they must approve the sale before allowing the second charge to be released. Please visit www.myfirsthome.org.uk for more information.
Please see your Help to Buy Buyer’s Guide for more information.
Selling your Shared Ownership Home
If you want to sell your Shared Ownership home you must first inform the Housing Association who owns the remaining share on your property, as they may be able to nominate a person to buy your share.
Secondly, you must have an independent valuation carried out on the property and it will be resold at the market value of the property at that time.
If your Housing Association is unable to find a buyer for your home you may be able to sell your property on the open market, but it will be up to you to market and sell the property and pay the full cost of estate agent fees, solicitor fees, valuation report etc.
Please bear in mind that the buyer for your property must meet the criteria for Shared Ownership and needs to apply for Shared Ownership via our website, and we will assess and process their application in the normal way. They must also be able to afford your share in the property - so if you own 50% of the property they must also purchase 50% - they cannot buy a lesser share.
Please note that this process may vary depending on what it says in your lease.
You also have the option to buy more shares in your home, known as staircasing.
Most leases allow you to buy extra shares in your home after you have made your initial purchase and some allow you to eventually own 100% of your home. You can usually purchase additional shares in stages of 10% or 25%, depending on what it says in your lease.
The amount you pay for the share will depend on the current value of your home. The amount of rent that you pay on the unsold share will reduce accordingly, but if you staircase to 100% there will be no rent to pay (there may still be a service charge to pay on some properties).
If you would like to staircase and purchase additional shares the first thing you will need to do is contact your Housing Association. Staircasing is done in exactly the same way that you purchased your initial share in the property.
Find out more