New Build Conveyancing
Our specialist New Build team are here to help buyers of new build homes. We are proud to be able to say that New Homes Law is now recognised as one of the leading recommended panel of conveyancers for national builders including Barratt Homes , Countryside Properties, Bellway Homes and many other leading house builders. We have plenty of experience in helping first time buyers to obtain their new home as well as helping seasoned investors expand their portfolio’s. What ever your circumstances, our team is ready to help.
Our expert staff also specialise in Government backed schemes such as Help to Buy and we provide this service at no extra cost to a standard transaction.
For more information about how a member of our team could help with one or more of the above transactions, simply visit the Get in Touch page.
How Help to Buy works
Equity loans are open to both first-time buyers and home movers on new-build homes in England with a purchase price up to £600,000.
You won’t be able to sub-let your home if you use this scheme. It must also be your only property.
With an equity loan:
- you’ll need to contribute at least 5% of the property price as a deposit
- the government will give you a loan for up to 20% of the price
- you’ll need a mortgage of up to 75% to cover the rest
|For a property worth £200,000||Amount||Percentage|
Equity loan fees
You won’t be charged loan fees for the first 5 years of owning your home.
In the sixth year, you’ll be charged a fee of 1.75% of the loan’s value. After this, the fee will increase every year. The increase is worked out by using the Retail Prices Index plus 1%.
Your Help to Buy agent will contact you before the fees start, to set up monthly payments with your bank. You’ll also be sent a statement about your loan each year.
Fees don’t count towards paying back the equity loan.
Applying for an equity loan
Contact the Help to Buy agent in the area where you want to live if you’d like to buy a home with an equity loan.
You must buy your home from a registered Help to Buy builder. Your Help to Buy agent should have a list of registered builders for you to choose from.
Selling your home and paying back the loan
You must pay back the loan after 25 years or when you sell your home – whichever is earliest. How much you pay back will depend on the market value at that time.
|Market value of your home||Equity loan taken out||Amount|
|Bought for £200,000||20%||Borrowed £40,000|
|Sold for £250,000||20%||Pay back £50,000|
You can pay back part or all of your loan at any time. The minimum percentage you can pay back is 10% of the market value of your home. The amount you pay will depend on the market value at that time.
|Market value of your home||Percentage||Amount|
|Bought for £200,000||Borrowed 20%||Borrowed £40,000|
|Value at time of payment £220,000||Paying back 10%||Pay back £22,000|