Stage 1 - Application
An application needs to be made to the local help to buy agent. The application includes a Property Information Form which shows details of the proposed purchase, main mortgage, deposit and household income. The Property Information Form also confirms your agreement to the funds due being paid directly to the house builder.
You will need to sign the Property Information Form with a copy of the Builders Reservation Form which must be sent to the local home buyer agent.
Authority to proceed
The local home buyer agent assesses the application and if passed they will issue an authority to proceed. This is valid for 3 months and exchange of contracts must take place within this period.
Stage 2 - Exchange of Contracts
You will need to go through the normal conveyancing process with regard to the property but you will also need legal support with the signing of the help to buy equity loan agreement. Banner Jones can help you with this.
We will need to check that the mortgage offer, property price and available funds are consistent with the authority to proceed and request permission to exchange contracts from the local home buyer agents.
An approval is received before contracts can be exchanged.
Stage 3 - Completion
- The agents pay the funds direct to the developer.
- We return confirmation of the sale to the local home buyer agent who will then register the details with the post sale home buyer agent.
- We deal with the registration of the second charge. ie, the loan
Sale of the Property
Consent from the post sale home buyer agent is required and the agencies mortgage will only be released with their permission. Their main concern is that the sale of the property is at the correct market value and they can request an independent valuation to ensure this.