When you sell your Help to Buy home, unless you have already repaid your Help to Buy equity loan, you will need to repay Homes England’s equity loan at the same time.
For example, if you initially bought your home with a 75% mortgage and a 5% cash deposit and haven’t made any further repayments to reduce the equity loan (as shown in Illustration 1 below), you will repay Homes England 20% of the property’s value at the time of sale.
The repayment to Homes England will be managed by the Mortgage Administrator.
You are free to sell your home at any time, but an independent valuer must determine its current market value. The property should be sold on the open market for its prevailing market valuation.
If the sale price exceeds the market value, the amount you owe to Homes England will be based on their percentage share of the actual sale price. Homes England will not release its charge on the property for sales made below market value.
Any outstanding fees or interest, such as interest arrears, must be settled before the sale is finalized.
It’s important to note that the Help to Buy equity loan must be repaid when you sell your home, and you will be responsible for covering the costs associated with the sale.
The examples below illustrate how the equity loan repayment is calculated, assuming a Help to Buy home with an initial value of £200,000, where the buyer secured a 75% mortgage and paid a 5% deposit.
Your solicitor or conveyancer can provide additional examples and guidance specific to your situation when advising you on your sale.
Illustration 1a
| Start of year | Estimated annual change in property price % | Total property Value | Help to Buy home owner your entitlement to 80% of property value | Homes England entitlement to 20% of property value |
| 1 | +2 | £200,000 | £160,000 | £40,000 |
| 2 | +2 | £204,000 | £163,200 | £40,800 |
| 3 | +2 | £208,080 | £166,464 | £41,616 |
| 4 | +2 | £212,242 | £169,794 | £42,448 |
| 5 | +2 | £216,846 | £173,477 | £43,369 |
| 6 | +2 | £220,816 | £176,653 | £44,163 |
In the example provided in 1a, if the buyer decided to sell their Help to Buy home at the beginning of the sixth year (after owning the property for five years), and assuming property values increased by 2% annually, the estimated sale price would be £220,816. The buyer would use these proceeds to pay off any remaining balance on their main mortgage and to repay the £44,163 owed on the Help to Buy equity loan.
London Help to Buy example
The examples below demonstrate how the equity loan repayment is calculated, based on a London Help to Buy home with an initial value of £400,000, where the buyer secures a mortgage for 55% and contributes a 5% deposit. Your solicitor or conveyancer can provide additional examples and guidance when advising you on your purchase.
| Start of year | Estimated annual change in property price % | Total property Value | London Help to Buy home owner your entitlement to 60% of property value | Homes England entitlement to 40% of property value |
| 1 | +2 | £400,000 | £240,000 | £160,000 |
| 2 | +2 | £408,000 | £244,800 | £163,200 |
| 3 | +2 | £416,160 | £249,696 | £166.464 |
| 4 | +2 | £424,483 | £254,690 | £169,793 |
| 5 | +2 | £432,973 | £259,784 | £173,189 |
| 6 | +2 | £441,632 | £264,979 | £176,653 |
In the example above, if the buyer decided to sell their London Help to Buy home at the beginning of the sixth year (after five years of ownership) and assuming a 2% annual increase in property values, the estimated sale price would be £441,632.
The buyer would then use these proceeds to pay off any remaining balance on their primary mortgage and to repay the £176,653 owed on the Help to Buy equity loan.