Selling a Help to Buy Property: How to Repay the Equity Loan

The Help to Buy equity loan scheme helped hundreds of thousands of first-time buyers and home movers onto the property ladder between 2013 and 2023. But when it comes time to sell, many homeowners discover that the process is more involved than a standard property sale.

This guide explains exactly how the equity loan repayment works when you sell, how the percentage calculation operates when property values change, what fees you will face, and the pitfalls that catch sellers off guard. If you bought your home through Help to Buy and are thinking about selling, read this before you do anything else.

How the Help to Buy equity loan works

Under the Help to Buy scheme, the government lent buyers an equity loan of up to 20% of the purchase price (40% in London) to put towards their home. The buyer contributed at least 5% as a cash deposit and funded the remaining 75% (or 55% in London) through a standard mortgage. The equity loan was interest-free for the first five years.

Crucially, the equity loan is not a fixed cash debt. It is a percentage stake in your property. When you sell, you repay that same percentage of the property's current market value — not the original amount you borrowed. This means the government shares in both the gains and the losses of property value changes. The Help to Buy equity loan scheme guidance on GOV.UK sets out the full terms.

The equity loan is registered as a second charge on your property at the Land Registry, sitting behind your mortgage lender's first charge. When you sell, your solicitor must arrange for both charges to be redeemed and removed. For more on how second charges work during a sale, see our guide to second charges and selling.

How the equity loan repayment is calculated

The repayment amount is always based on the original equity loan percentage applied to the current market value of your property. The percentage itself never changes — what changes is the value it is applied to.

Worked example 1: property has increased in value

• Original purchase price: £250,000
• Equity loan percentage: 20%
• Original equity loan amount: £50,000
• Current market value (RICS valuation): £310,000
• Equity loan repayment: 20% of £310,000 = £62,000

In this scenario, the seller repays £62,000 — which is £12,000 more than the original loan. The government has benefited from the rise in value, just as the seller's own equity stake has grown.

Worked example 2: property has decreased in value

• Original purchase price: £250,000
• Equity loan percentage: 20%
• Original equity loan amount: £50,000
• Current market value (RICS valuation): £220,000
• Equity loan repayment: 20% of £220,000 = £44,000

Here, the seller repays £44,000 — which is £6,000 less than the original loan. The government absorbs its proportional share of the loss. However, the seller's own equity has also shrunk, so a fall in value hurts everyone involved.

Worked example 3: London property with 40% equity loan

• Original purchase price: £400,000
• Equity loan percentage: 40%
• Original equity loan amount: £160,000
• Current market value (RICS valuation): £480,000
• Equity loan repayment: 40% of £480,000 = £192,000

London sellers with 40% equity loans face significantly larger repayment amounts. In this example, the seller must repay £192,000 — an increase of £32,000 on the original loan. This is why it is essential to run the numbers carefully before listing.

Full breakdown: what you take home when selling

To understand your true net proceeds from selling a Help to Buy property, you need to account for the equity loan, your mortgage balance, and all selling costs. Here is a worked example using realistic 2026 figures.

This seller originally put down a 5% deposit (£12,500) and has built up equity through mortgage payments and property value growth. The equity loan repayment is the second-largest deduction after the mortgage itself. For a comprehensive breakdown of all selling costs, see our guide to conveyancing costs.

Step-by-step process for selling a Help to Buy property

Selling a Help to Buy property follows the same general process as any property sale, but with additional steps to satisfy Homes England. Here is the full sequence.

1. Contact your Help to Buy agent. Before listing your property, contact the Help to Buy agent for your region. They will explain the process and confirm the equity loan percentage registered against your property. You can find your regional agent on the Own Your Home website.
2. Obtain a RICS valuation. Commission an independent valuation from a RICS-qualified surveyor. This valuation determines the market value used to calculate your equity loan repayment. It is valid for three months, so time it carefully. The cost is typically £150 to £300.
3. Submit the valuation to Homes England. Send the completed valuation report to Homes England (or the equivalent body in Wales or Scotland). They will review it and confirm the equity loan redemption figure. This can take up to four weeks.
4. Instruct a solicitor. Choose a solicitor or conveyancer who has experience with Help to Buy sales — our guide on how to instruct a solicitor for selling covers what to look for. They need to handle the redemption of both your mortgage and the equity loan, and liaise with Homes England throughout. Not all firms are familiar with the process, so ask specifically about Help to Buy experience when getting quotes. Our guide on conveyancing timelines explains the standard process.
5. Market and sell your property. You can list your property for sale on the open market at any price. There is no requirement to sell to a first-time buyer or through any particular channel. Accept an offer as you would with any sale.
6. Your solicitor handles the redemption. Once you have accepted an offer, your solicitor will obtain the final redemption figure from Homes England, request a mortgage redemption statement from your lender, and prepare the completion statement showing all deductions. Both the mortgage and the equity loan are repaid from the sale proceeds on completion day.
7. Completion and charge removal. On completion day, your solicitor pays off your mortgage, repays the equity loan to Homes England, deducts all fees, and transfers the remaining balance to your bank account. The first and second charges are removed from your title at the Land Registry.

Timeline: how much longer does it take?

The additional steps involved in a Help to Buy sale add approximately four to eight weeks to the standard conveyancing timeline. Here is where the extra time typically goes:

To minimise delays, start the valuation and Homes England notification process before you accept an offer. Some sellers commission the RICS valuation and contact their Help to Buy agent as soon as they decide to sell, running this in parallel with marketing the property.

Fees specific to Help to Buy sellers

On top of the standard costs of selling a house, Help to Buy sellers face these additional expenses:

In total, expect to pay an additional £450 to £800 in fees compared with a standard freehold sale. These costs are in addition to your estate agent fee, solicitor's base fee, disbursements, and any mortgage charges. For a full breakdown, see our guide to hidden costs of selling a house.

Interest fees from year six onwards

Help to Buy equity loans are interest-free for the first five years. From year six, you start paying a monthly management fee to Homes England. The initial rate is 1.75% of the equity loan amount per year, and it increases annually by the Consumer Price Index (CPI) plus 2%.

Here is how these fees can build up over time on a £50,000 equity loan:

These escalating fees are one of the main reasons sellers choose to sell or repay the equity loan before or shortly after the five-year interest-free period ends. The MoneyHelper Help to Buy guide provides further details on how the fee calculation works.

Common pitfalls when selling a Help to Buy property

Help to Buy sales involve additional complexity, and these are the issues that most commonly catch sellers out.

1. Underestimating the equity loan repayment

Many sellers assume they will repay the original cash amount they borrowed. If your property has risen in value — as most have since the scheme launched in 2013 — the repayment will be significantly higher. Always get the RICS valuation done early so you know the real figure before accepting an offer.

2. Not allowing enough time

The Homes England approval process adds weeks to the timeline. If your buyer is on a tight deadline or their mortgage offer is expiring, the delay can cause the sale to fall through. Start the Help to Buy process as soon as you decide to sell, ideally before you even list the property.

3. Using a solicitor unfamiliar with Help to Buy

Not all solicitors regularly handle Help to Buy redemptions. An inexperienced solicitor may cause delays by not knowing the correct process for liaising with Homes England, submitting the valuation, or handling the second charge removal. Ask prospective solicitors how many Help to Buy sales they have completed before instructing them.

4. Letting the RICS valuation expire

The RICS valuation is valid for only three months. If your sale takes longer than expected — which is common in property chains — the valuation may expire, and you will need to pay for a new one. Worse, if property values have changed in the interim, the repayment figure could be different. Time your valuation carefully, and factor in realistic timescales for the sale.

5. Forgetting about the interest fees

If you are past the five-year interest-free period, the monthly management fees will continue until the equity loan is repaid. These fees are not refunded even if you are in the process of selling. Make sure you budget for ongoing fees right up to completion day.

6. Assuming the sale price equals the valuation

The RICS valuation and the agreed sale price may differ. The equity loan repayment is based on the RICS valuation, not the sale price. If you sell for more than the valuation, you keep the difference on your share. If you sell for less, you still repay the percentage based on the valuation figure. This distinction is important and can work for or against you.

Staircasing: repaying the loan without selling

If you want to reduce or eliminate the equity loan before selling, you can staircase — that is, buy back some or all of the government's equity stake. Staircasing must be done in increments of at least 10% of the property's current market value, or you can repay the entire loan in one go.

To staircase, you need a RICS valuation (the same requirement as selling), and you will need funds to make the repayment. Many homeowners remortgage to raise the money. The process involves:

1. Obtaining a RICS valuation of your property
2. Submitting the valuation to Homes England with a staircasing application
3. Receiving confirmation of the repayment amount
4. Arranging funds (through savings or remortgage)
5. Your solicitor handling the repayment and updating the Land Registry

Staircasing before selling can simplify the sale process because your property will no longer have the equity loan second charge, making it a straightforward transaction for your buyer. However, you will need to weigh the cost of remortgaging and the RICS valuation against the benefit of a simpler sale. The Help to Buy buyer's guide on GOV.UK explains the staircasing process in detail.

How your equity is split: understanding the maths

When you sell a Help to Buy property, the sale proceeds are divided between three parties: your mortgage lender, the government (Homes England), and you. Understanding how the split works helps you calculate what you will take home.

Using a property originally bought for £250,000 with a 5% deposit, 75% mortgage, and 20% equity loan, now selling for £310,000:

Your share grows because you have been paying down the mortgage (increasing your equity) and because the property has risen in value. The government's percentage stays fixed at 20%, but the cash value of their stake increases with the property value.

Help to Buy and negative equity

If your property has fallen significantly in value, you could find yourself in a situation where the sale proceeds do not cover the mortgage balance plus the equity loan repayment. In this scenario, the government shares proportionally in the loss, which means the equity loan repayment is lower. However, you could still face a shortfall on your mortgage if you owe more than your share of the sale proceeds.

If you are concerned about negative equity, speak to your mortgage lender and a financial adviser before listing. They can help you understand your options, which might include negotiating with the lender or waiting for values to recover. For more on this topic, see our guide to selling with negative equity.

How Pine helps sellers get ahead

Selling a Help to Buy property involves more moving parts than a standard sale. Pine helps sellers front-load their preparation by completing legal paperwork — including the TA6 and TA10 property information forms — with AI guidance, and ordering property searchesat near-trade prices, all before a buyer is found. By getting your legal pack ready early, you can reduce the overall timeline and offset some of the extra weeks that the Homes England process adds to your sale.

Sources and further reading

• Help to Buy Equity Loan Scheme — Guidance (GOV.UK)
• Help to Buy Buyer's Guide (GOV.UK)
• Homes England (GOV.UK)
• Help to Buy 2021-2023 — Own Your Home (Homes England)
• Help to Buy Equity Loan (MoneyHelper)
• Find a RICS Surveyor (Royal Institution of Chartered Surveyors)
• Consumer Price Inflation — Latest Release (Office for National Statistics)
• Help to Buy Advice (Citizens Advice)
• Help to Buy: Equity Loan Scheme — Progress Review (National Audit Office)
• Buying and Selling a Home (The Law Society)

Related guides

• Selling a House with a Help to Buy Equity Loan

Frequently asked questions