Help to Buy Guide

iStock-657955486_super Help to Buy Guide
What You Need to Know about Help to Buy in London Thanks to Help to Buy, people aspiring to move to or relocate in London can purchase a new-build home with just a 5% deposit, and the government will loan up to 40% of the total purchase price. The scheme is helping thousands of new homebuyers purchase their first property without risking all their savings – could it be what you need to make your home ownership dreams a reality? It’s worth noting that while the Help to Buy scheme has many benefits, it’s not the government’s responsibility to ensure the property you purchase is defect-free. Even new-builds are often rife with costly defects, so if you want to know you’re investing wisely, it’s best to obtain a snagging list from a chartered surveyor before making an offer.

What is the Help to Buy Scheme?

The Help to Buy scheme is a government-led initiative aimed at helping property hunters – particularly first-time buyers – purchase a home without the huge financial burden.

Provided you have a 5% deposit and meet the criteria to apply, you’ll apply for a mortgage to cover as little as 55% of the property’s total price and borrow the remaining 40% (20% maximum outside of London) from the government. The government’s loan is interest-free for the first five years.

When you sell your home, the government will receive 40% of the equity. So, if you buy a property for £400,000 and sell it for £500,000, the government will receive £200,000 and you will get £300,000. You will need to pay off your mortgage with your share of the profits.

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Who Qualifies for a Help to Buy Loan in London?

Homeowners looking to relocate and first-time buyers can apply for a Help to Buy equity loan for a new-build London property worth up to £600,000. You can’t own any property when applying for a Help to Buy loan, nor can you sublet the property you purchase under the scheme.

Help to Buy is only available in England, and separate loan rules and criteria apply to regions outside of London. There are similar schemes in Scotland, Wales and Northern Ireland administered by the devolved governments.

How to Apply for Help to Buy

The Government-appointed Help to Buy London agent can guide you the process of applying for a Help to Buy equity loan, from handling your application to providing general property advice. Find more information by visiting or calling 0300 5000996.

Considerations When Searching for a Home

While a Help to Buy equity loan can help you purchase a home, it can’t highlight any areas that need improving or urgent defects. You might assume all newly built property are in near-perfect condition, but a recent study suggests that the average new-build hides up to 150 defects.

If you’re interested in the Help to Buy Scheme, you’re also undoubtedly interested in keeping hold of your savings, so you might consider obtaining a snagging list before purchasing a property. For as little as a few hundred pounds, we can give you the report you need to force your developer or builder into completing the repairs at no expense to you.

Learn more about snagging lists for London new-builds or call our RICS Chartered Surveyors on 020 7736 2383 to discuss your requirements.

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Recent Reviews

114307615494839964028 Help to Buy Guide
Daniel Vernazza
10:41 29 Apr 18
I highly recommend David. Very good technical knowledge. He was always available for our questions, which included a detailed call on the same day as the survey. The written survey report was clear, detailed and included pictures and estimates of the cost of repairs.
114307615494839964028 Help to Buy Guide
James Allen
14:12 18 May 18
We had two homebuyers surveys conducted by James. He was extremely knowledgeable, transparent and went the extra mile to inform my girlfriend and I of the results of each survey. Would highly recommend.
114307615494839964028 Help to Buy Guide
James Palairet
11:16 09 Jan 18
David gave us a fantastic service and has been a huge help during our property purchase process. We have had 2 surveys carried out, both of which were arranged very promptly. Thorough and extremely useful telephone calls and full written reports were received shortly afterwards. David's reports and advice have been invaluable to us.
114307615494839964028 Help to Buy Guide
Sarah Dixon
14:13 08 Jan 18
I have worked with David and his team as a buying agent for many years now. The service they offer is an excellent one, timely with a commonsensical approach. I would recommend them to anyone.
114307615494839964028 Help to Buy Guide
Elif Erdine
14:30 04 Oct 17
Very experienced firm and friendly staff. Highly recommended.
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