I’m from Burnley, and I’ve been a Real Estate Agent here for many years. I know all about the local housing market and laws. I often get asked how to sell a Help to Buy Equity Loan home in Burnley. As a local expert, I want to help you understand the important factors, problems, and plans involved in selling an Equity Loan home. I hope to ease your worries and give helpful advice. This guide is especially useful for anyone trying to make sense of this difficult part of Burnley’s housing market.
So, where do you start when selling an Equity Loan home? First, you need to understand the basics of the Help to Buy Equity Loan scheme. Simply put, this program allows the government to loan you up to 20% (or 40% in London) of the cost of your new build home. Therefore, if you plan to sell the house before you have fully paid off the loan, there are a few important things you need to keep in mind.
Firstly, your property needs to be valued. According to the rules of the scheme, an independent person must set the value of your home. This amount should match the general market prices in Burnley. To make your home worth as much as possible, make any necessary improvements before the valuer visits.
Next, you need to let your Help to Buy agent know you are selling. They will tell you the exact amount left to pay on the loan, which is a percentage of the current total value of your home; not the price you originally paid. This is because a Help to Buy loan is based on equity and not a set amount. So, if the housing market in Burnley is doing well and your property value has gone up, you might have to pay back more than you first borrowed.
You also need to think about your mortgage. Most home owners with the Help to Buy scheme also have a mortgage, which will also need to be paid off when the house is sold. Usually, this is paid with the money made from selling the house. Subtracting the amount of the Equity Loan and the mortgage from the sale price can give you an idea of the profit you may make from selling.
It’s also essential to work with a good solicitor who can manage different parts of the sale, like the sales contract, land registry details, property deeds and money transfers. Experience with Help to Buy sales specifically will be helpful because they can be complex. When you’re looking for solicitors in Burnley, local knowledge is a must.
Selling a home can be a stressful time but more so with an equity loan. Be ready for the process to take some time, possibly longer than a standard house sale, due to the extra paperwork involved.
Selling a Help to Buy Equity Loan home in Burnley can seem complicated, but it’s manageable, especially if you have the right information and help. This guide aims to give you the knowledge you need to navigate the process smoothly, teaching you the requirements, main steps, and what to expect during the process. Making a successful sale and managing the related Equity Loan takes planning and smart decisions. How much profit you make can be influenced by the local housing market, so keeping an eye on local trends and working with a professional agent can be very beneficial.