Help to Buy scheme deadline extended
The government announces extension for the current Help to Buy scheme in England and confirms plans for the new scheme in April 2021.
The government has announced that the building deadline for new homes purchased under the Help to Buy scheme, has been extended until 28 February 2021.
All new homes would have previously needed to have been built by 31 December 2020. But the outbreak of the coronavirus meant thousands of homebuyers were at risk of losing their new properties, as house builders struggled to meet the deadline.
The legal sale of all new properties under the scheme will still need to be completed by 31 March 2021. But the two-month extension will give house builders some much-needed breathing space.
More homebuyers will now also be able to benefit from the Help to Buy equity loan scheme, which has enabled both first time buyers and home movers to buy a new home with as little as a 5% deposit and 75% mortgage.
Existing customers who are already experiencing severe delays with the construction of their new homes, will also have their completion dates extended to 31 May 2021, if it is deemed necessary. But why is this important?
From 1 April 2021, the existing Help to Buy scheme in England will be replaced. Under the new scheme, there will be new limits on property purchase prices and only first time buyers will be eligible.
If you have any questions or would like any additional information about the government’s Help to Buy scheme, then please do get in touch.
Information correct as of 5 August 2020.