As you may already be aware, the government-backed Help to Buy Equity Loan Scheme will come to an end in March 2023, but the process of closing the scheme will begin in October of this year and careful consideration should be given when marketing a property through the Scheme as to whether practical completion will be achieved within the 6 month window from 31 October 2022.
The key dates to note are:
| 31 October 2022 | The final date by which a HTB purchaser may sign up to the scheme, to allow sufficient time for legal completion. |
| 31 December 2022 | Developers are being advised that the Help to Buy elements of their development must achieve practical completion by 31 December 2022, with building warranties and building regulations completion certificates also required to have been issued by that date.
The developer must notify the buyer if this date is not likely to be met. |
| 31 March 2023 | Legal completion must take place on or before this date. If legal completion is not achieved by that date, the buyer must be released from their contract and all deposit monies (including reservation deposit) must be returned. |
It is also worth bearing in mind HTB’s turnaround times (which have increased considerably since the new scheme was put in place in 2021) as there is a risk that, if HTB’s agents are taking some time to issue Authority to Proceed (ATPs) and Authority to Exchange (ATEs) or to deal with amendments to documents, this may take the transaction very close to the cut-off point.
This article is for general purpose and guidance only and does not constitute legal advice. Specific legal advice should be taken before acting on any of the topics covered. No part of this article may be used, reproduced, stored or transmitted in any form, or by any means without the prior permission of Brecher LLP.
