Help to Buy

Stage 1

• First, choose your potential Help to Buy home. We can advise you which of our homes qualify for the Help to Buy scheme.
• Talk to your Independent Financial Adviser (IFA) to confirm your financial status. If you don’t already have an IFA, your local Help to Buy agent or Nicholas King Homes will put you in touch with Independent Financial Advisers who are very experienced in dealing with Help to Buy.
• Make sure you have the funds to pay:
  • your reservation fee to Nicholas King Homes (maximum £500)
  • your deposit – at least 5% of the full purchase price, which will be due when you exchange contracts (some mortgage lenders may require higher deposits)
  • your fees, e.g. stamp duty, legal fees.
• Register and fill in a Help to Buy Property Information Form (available on the Help to Buy website). They will need details of your proposed purchase, your proposed main mortgage, your deposit and your current household income. By filling out this form, you are confirming your consent for the Help to Buy mortgage funds to be paid directly to Nicholas King Homes.
• Reserve your home (all it takes is £500).
• We will send a copy of the Nicholas King Homes signed reservation form to your local Help to Buy agent.

Stage 2

• Next, simply wait for your local Help to Buy agent to approve your application. They will check you can afford your main mortgage and also that you have declared your Help to Buy home is your only residence (this is to protect tax payers’ investment in the Help to Buy equity loan).
• You should receive an Authority to Proceed from your local Help to Buy agent within four working days of your application being received, provided your new home is affordable.
• Instruct a solicitor to act for you and tell your IFA to submit your full mortgage application.
• Your Authority to Proceed will be accompanied by instructions to you and your solicitor/conveyancer. They can explain the legal documents included within the pack.

Stage 3

• Your solicitor/conveyancer will advise you and ensure you sign the sale contract and Help to Buy equity loan.
• They will also explain the legal implications of the equity loan, that the Help to Buy home must be your only residence and the consequences of fraudulent application.
• They will then check that your mortgage offer, property price and available funds are consistent with the Authority to Proceed, and request permission to exchange contracts from your local Help to Buy agent.
• They will issue approval to your solicitor/conveyancer and contracts are exchanged.
• Once you have paid your deposit, if required, you will be legally contracted to complete the purchase by an agreed date.

Stage 4

• At completion, your mortgage lender will provide their funds and your Help to Buy funds will be sent directly to Nicholas King Homes. Once completion has taken place, you own the property and can move in.
• Your solicitor will confirm the sale to your local Help to Buy agent, who will register your details with the post-sales Help to Buy agent.
• Your solicitor will register a second charge on your home in favour of the Agency, entitling them to a share of the future sale proceeds. This charge will be equivalent to the percentage contribution made towards the purchase price. Remember, you must repay that contribution either when you sell your home or after 25 years (whichever is sooner).