The Help to Buy scheme has been extended to compensate for the delays in building work due to the coronavirus outbreak.
Under the current scheme, work on new homes would have to be finished by the end of December – the extension will mean the deadline will now move to 28 February 2021.
The deadline for the legal completion of the sale will remain the same – 31 March 2021.
The government has also announced an extra measure to protect existing customers who have experienced severe delays as a result of coronavirus.
Homes England, the government’s housing accelerator, will work with those who had a reservation in place before 30 June to assess their situation and look to provide an extension where necessary. In which case, they will have until 31 May 2021 to legally complete.
Separately, the government’s new Help to Buy scheme, which will replace the current scheme, will come into place from 1 April 2021 and run until March 2023 as planned and there are no plans for further extensions.
The new scheme introduces property price caps and is restricted to first-time buyers only.
The Help to Buy equity loan scheme has helped more than a quarter of a million people to buy a home. Since the start of the scheme on 1 April 2013, 272,852 property sales have been completed.
Help to Buy equity loans provide a low-interest loan towards your deposit. Customers need a 5% deposit, and the government lends up to 20% of the value of the home (up to 40% of the value if you are purchasing in London).
Please contact us if you would like advice about the legal aspects of buying or selling a home.