Page 26 of 29
February 2018
You should check with your house builder that the funding will be available on the
date you expect to complete your purchase
Q
Are there any restrictions on the properties that I can purchase?
All Help to Buy homes are on new build developments where Homes England has a
registration agreement with the house builder. You can only purchase from these
house builders. The maximum purchase price is £600,000.
Q I
would like to buy a Help to Buy house but the house builder tells me it is
only available on a leasehold basis. Should I stop my purchase?
It is your decision whether you are content to proceed with your purchase. A lease is
a private legal agreement between you and your landlord or freeholder and sets out
the rights and responsibilities of both parties. Homes England cannot provide legal
advice. We strongly recommend that you seek independent legal advice make
yourself aware of the terms of the lease and the associated costs. The Leasehold
Advisory Service have published guidance on what to look out for at
http://www.lease-advice.org/advice/leasehold-infosheets/
LEASE is a specialist advisory body funded by the Ministry of Housing, Communities
and Local Government to provide assistance to leaseholders. Alternatively, a
telephone appointment can be booked to speak to one of LEASE’s advisers on 020
7832 2500 (9.30am to 3.00pm Monday to Friday); or you can seek advice by e-mail:
info@lease-advice.org
A
s you may be aware, the Government has recently stated that other than in
exceptional circumstances, it cannot see the case for new build houses to be sold on
a leasehold basis and that it intends to bring forward legislation to prohibit the future
development of new build leasehold houses, other than in exceptional
circumstances.
M
ore FAQ on leasehold and Help to Buy is also available here:
https://www.gov.uk/government/publications/leasehold-reform-and-help-to-buy-
equity-loan
Q
Can I sublet my Help to Buy home?
No. Help to Buy is designed to assist you to move on to or up the housing ladder. If
you wish to sublet, you will first have to repay the Help to Buy equity loan assistance.
In exceptional circumstances (e.g. a serving member of the Armed Forces staff
whose tour of duty requires them to serve away from the area in which they live for a
fixed period, then sub-letting is allowed. In these circumstances you would also
require approval from your mortgage lender and Homes England’s Mortgage
Administrator). You can find out more about the Mortgage Administrator here:
https://www.myfirsthome.org.uk/
Q
Can I own other homes and buy a Help to Buy home?
No. Help to Buy is designed to assist you to move up the housing ladder and must
be your only residence. This means you will be expected to sell your current home
(in the UK or abroad) if moving up the ladder. The disposal of your current home will
be verified by your solicitor/conveyancer before you can proceed to exchange
contracts on the Help to Buy Home.
In addition you cannot be linked to another property financially. For the avoidance of
doubt, married couples own assets jointly and therefore if one owns a property the
other is directly linked to the asset and treated as a home owner also.