Over the last few years, many people have utilised the Government’s Help To Buy Scheme, whereby your deposit was “topped up” when you purchased a property, known as a Help To Buy Equity Loan. Under the terms of the scheme, this Top Up payment is due for repayment after 5 years, otherwise interest will be charged. The amount to be repaid under the loan is a percentage of the value of the property on the day you sell (or remortgage).
The Help To Buy Scheme was administered by Target, however, on 16 June 2023, the administration was transferred to a company trading as My Help To Buy Loans (run by Lenvi). Target are no longer contactable, nor have any involvement in the administration of the Help To Buy Scheme.
Since the change in administration, many have found it has become extremely difficult to speak to an advisor to obtain an update on a matter. Often, callers to Lenvi are on hold for an hour before being automatically disconnected. Currently, the only means of communication appears to be by email, however, this comes with up to a 10-working day wait for a response.
For all clients who have a Help To Buy over their property and are looking to sell or remortgage the property, you should ensure you complete the requirements set out on the Government website (https://www.gov.uk/guidance/how-to-repay-your-equity-loan-using-your-own-money#how-much-you-need-to-repay) as early as possible in the process. As lawyers, we will be required to contact Lenvi directly and the earlier we can get our request sent to them (which cannot be done until you have completed your requirements), the less chance there will be of a delay in your transaction.