The UK Government has confirmed that it will extend by two months the deadline for the practical completion of homes being purchased using the current Help to Buy equity loan scheme. This extension is in recognition of the disruption the Coronavirus pandemic has caused the housebuilding industry.
Under current scheme rules, new homes would have been required to be build complete by 31 December 2020, and legal completion would need to take place before 31 March 2021. However this announcement means that the deadline for practical completion under the current Help to Buy scheme will move to 28 February, with the legal completion deadline remaining 31 March 2021.
For home buyers who reserved a home using Help to Buy before June 30 2020 and who are experiencing “severe delays” due to Covid-19, the legal completion deadline can potentially be extended from March 31 to May 31 2021. But for those who have reserved since July 1, this deadline remains the end of March. If you have reserved a home with us using Help to Buy, your Sales Executive will be able to discuss your options with you.
The Government has reiterated that the current scheme will be replaced by the new Help to Buy scheme which will be in place from 2021 to 2023 and that there are no plans for further extensions. You can find out more about the new Help to Buy scheme here.
David O’Leary, Policy Director at the Home Builders Federation (HBF), commented: “This is a welcome move that will ensure thousands of homebuyers do not miss out on their new home purchase. It will mean buyers of homes where completion was delayed because of the Voronavirus shut down will still be able to use this government support to get on the housing ladder.
“With mortgages for first-time buyers now few and far between, Help to Buy is more important than ever and this flexibility will help smooth the transition the replacement scheme opening in April.”
Help to Buy Equity Loan – how does it work?
The purchasing scheme was created to help hard-working people buy their own home. The Government lends buyers up to 20% of the cost of a new build home, so just a 5% cash deposit is required and a 75% mortgage to make up the rest.
Buyers are not charged fees on the 20% loan for the first five years of owning the home and it can be paid back at any point or upon the sale of the home. The scheme is available on new build properties up to the value of £600,000.
For more information about how to secure a Story home using the Government’s Help to Buy scheme, click here or speak to one of our Sales Executives today.