Selling to a Help to Buy Buyer

Help to Buy has been one of the most significant government interventions in the UK housing market. Between 2013 and 2023, the equity loan scheme helped over 380,000 households purchase a new-build property in England. Although the scheme has now closed to new applications, its impact continues. Many homeowners are now selling properties that still carry a Help to Buy equity loan, and many buyers are using Lifetime ISAs or legacy Help to Buy ISAs to fund their deposits.

This guide covers both scenarios: selling a property that has an existing Help to Buy equity loan, and selling to a buyer who is using a government-backed savings product to fund their purchase. Whether you are the one with the equity loan or your buyer is the one with the LISA, understanding the mechanics helps you manage the timeline and avoid unnecessary delays.

Part 1: Selling a property with a Help to Buy equity loan

If you purchased your property using the Help to Buy equity loan scheme, the government (through Homes England) holds a percentage charge on your property. When you sell, this loan must be repaid from the sale proceeds. The process is well-established but involves specific steps that your solicitor needs to manage alongside the standard conveyancing process.

How the equity loan repayment works

The Help to Buy equity loan is not a fixed amount. It is a percentage of your property's value at the time of sale. Most borrowers received a 20% equity loan (40% in London), meaning they owe that percentage of the current market value when they sell.

Here is a worked example:

In this example, you would repay £60,000 to Homes England from the sale proceeds, plus clear your mortgage of £170,000, leaving you with approximately £70,000 before selling costs. If the property had fallen in value, the equity loan repayment would also be lower, because it tracks the current value, not the original.

The redemption process step by step

1. Instruct your solicitor. Tell them you have a Help to Buy equity loan. They will need to manage the redemption alongside the standard sale process. If you have not yet chosen a solicitor, make sure you select one with experience of Help to Buy redemptions.
2. Obtain a RICS valuation. Homes England requires an independent RICS valuation of your property to determine the current market value. This valuation must be carried out by a RICS-registered surveyor from the approved panel. Your solicitor can advise on how to arrange this. The cost is typically £150 to £300.
3. Submit the redemption request. Your solicitor submits the valuation and a formal redemption request to the Help to Buy agent (Homes England or their appointed administrator). The request confirms you intend to sell and asks for the redemption figure.
4. Receive the redemption statement. Homes England issues a redemption statement confirming the amount you owe. This typically takes four to six weeks from submission. The figure is usually valid for three months.
5. Completion and repayment. On completion day, your solicitor repays the equity loan from the sale proceeds, along with your mortgage. Homes England then removes their charge from the title at HM Land Registry.

The critical point is timing. Because the redemption statement takes four to six weeks, your solicitor should submit the request as soon as conveyancing begins. If left too late, it becomes the bottleneck that delays exchange. For a full overview of how these timelines fit into the wider process, see our guide on how long conveyancing takes.

What if you have partially repaid the equity loan?

The Help to Buy scheme allowed borrowers to make voluntary partial repayments (known as “staircasing”) in minimum chunks of 10% of the property's current value. If you have already repaid part of your equity loan, the percentage you owe at the point of sale is reduced accordingly. For example, if you originally borrowed 20% and repaid 10%, you owe 10% of the current market value when you sell. Your solicitor will verify the outstanding percentage with Homes England as part of the redemption process.

Impact on your sale price and buyer perception

A Help to Buy equity loan on your property does not affect the sale price or the buyer's offer. The buyer is purchasing the property at market value, and the equity loan is repaid from your share of the proceeds. The buyer does not inherit the loan. From the buyer's solicitor's perspective, the key requirement is confirmation that the equity loan charge will be discharged on completion. This is a routine process that experienced conveyancers handle regularly.

For a detailed guide on the full process of selling with an equity loan, see our dedicated guide on selling a house with a Help to Buy equity loan.

Part 2: Selling to a buyer using a Lifetime ISA or Help to Buy ISA

While the Help to Buy equity loan scheme has closed, two government-backed savings products remain available to first-time buyers: the Lifetime ISA (LISA) and the legacy Help to Buy ISA. Both provide government bonuses that boost the buyer's deposit, but they work differently and have different implications for the transaction timeline.

Lifetime ISA (LISA)

The LISA is the more common product for current first-time buyers. Key features that affect your sale:

• The buyer can save up to £4,000 per year and receives a 25% government bonus (up to £1,000 per year).
• The property must cost £450,000 or less. If your property is priced above this, the buyer cannot use their LISA funds.
• The withdrawal takes approximately 30 days from the point the buyer's solicitor requests the funds from the LISA provider.
• The buyer must be a genuine first-time buyer who has never owned a property anywhere in the world.
• The LISA must have been open for at least 12 months before the funds can be withdrawn for a property purchase.

The 30-day withdrawal period is the main concern for sellers. If the buyer's solicitor does not submit the withdrawal request early enough, it can delay exchange. The withdrawal request should be submitted as soon as the conveyancing process begins, so that the funds are available by the time all other steps are complete. For most transactions, this runs comfortably in parallel with the standard conveyancing timeline.

Help to Buy ISA

Help to Buy ISAs closed to new accounts in November 2019, but existing holders can continue saving until November 2029 and claim the government bonus. Key points:

• The government bonus is 25% on savings up to £12,000, giving a maximum bonus of £3,000.
• The property must cost £250,000 or less (or £450,000 in London).
• The bonus is paid directly to the buyer's solicitor at completion, not to the buyer. This means it cannot be used as part of the exchange deposit.
• The buyer's solicitor submits the bonus claim at least two weeks before completion to ensure the funds arrive on time.

The Help to Buy ISA is less likely to cause timeline issues than the LISA, because the bonus is claimed close to completion and the amounts involved are smaller. However, the restriction on using the bonus for the exchange deposit means the buyer needs sufficient funds from other sources to cover the deposit at exchange (typically 5% to 10% of the purchase price).

Timeline impact: what sellers should expect

The timeline for a transaction involving Help to Buy elements depends on which aspects are in play. Here is how different scenarios typically affect the overall timeline:

In a well-managed transaction, none of these factors should extend the overall timeline beyond the standard 12 to 16 weeks, because they run in parallel with other conveyancing steps such as searches, enquiries, and mortgage processing. The risk arises when solicitors delay submitting the necessary requests, turning a parallel process into a sequential bottleneck.

Vetting a buyer who is using a LISA or Help to Buy ISA

A buyer using a government savings product to fund their deposit is typically a first-time buyer, which means they bring the usual advantages and challenges of first-time buyers: no chain, but potentially less experience with the process. When vetting this type of buyer, the standard checks apply, plus a few additional considerations.

Your estate agent should confirm the following before you accept the offer:

• Which product is the buyer using? LISA, Help to Buy ISA, or neither. This determines the timeline implications.
• How much is in the account? The amount saved plus the government bonus determines how much of the deposit comes from this source. If it is a small proportion of the overall deposit, the timeline impact is minimal.
• Does the buyer have a mortgage agreement in principle? A LISA or Help to Buy ISA does not replace the need for a mortgage. The buyer should have an AIP that accounts for the deposit structure.
• Has the LISA been open for at least 12 months? If not, the buyer cannot withdraw the funds for a property purchase, regardless of how much is saved.
• Is the property within the price cap? LISAs have a £450,000 cap; Help to Buy ISAs have a £250,000 cap (£450,000 in London). If your property exceeds the relevant cap, the buyer cannot use those funds.

For a comprehensive approach to checking a buyer's financial readiness, see our guide on how to vet a buyer before accepting an offer.

Practical tips for sellers

Whether you are repaying a Help to Buy equity loan or selling to a buyer using a LISA, these practical steps help keep the transaction on track:

If you have a Help to Buy equity loan

1. Start the redemption process before you list. You can request the RICS valuation and submit the redemption request to Homes England before you have a buyer. This means the redemption statement is ready when you accept an offer, removing four to six weeks from the critical path.
2. Choose a solicitor with Help to Buy experience. Not all conveyancers have handled Help to Buy redemptions. Ask specifically whether they have processed equity loan repayments before. Inexperience at this step can cause delays.
3. Disclose the equity loan to your estate agent. Your agent should be aware of the equity loan so they can manage buyer expectations. The loan will be visible on the title at Land Registry, so there is no benefit in concealing it.
4. Understand your net proceeds. Before listing, calculate what you will receive after repaying the equity loan and your mortgage. If the numbers are tight, take financial advice before committing to a sale.

If your buyer is using a LISA or Help to Buy ISA

1. Confirm the savings product early. Ask your estate agent to establish which product the buyer is using and how the timeline is affected, ideally before you accept the offer.
2. Set timeline expectations upfront. If the buyer is using a LISA, factor the 30-day withdrawal period into your agreed timeline. Set milestone dates, including when the withdrawal request should be submitted.
3. Monitor progress through your estate agent. Ask for regular updates on whether the LISA withdrawal has been submitted and whether the funds have been received by the buyer's solicitor.
4. Prepare your legal pack in advance. Having your property information forms, title documents, and draft contract ready to send immediately after accepting an offer means the buyer's solicitor can begin work without delay. This is exactly the preparation Pine helps you complete before you list.

Common complications and how to handle them

Redemption figure disputes

Occasionally, sellers disagree with the valuation that Homes England uses to calculate the redemption figure. If you believe the valuation is too high (which increases the amount you owe), you may be able to challenge it by submitting a second independent valuation. However, this process takes additional time and is not always successful. Your solicitor can advise on whether a challenge is worthwhile.

LISA withdrawal delays

The 30-day LISA withdrawal period is a regulatory requirement that cannot be shortened. If the buyer's solicitor submits the request late, there is no way to accelerate it. The only mitigation is ensuring the request is submitted at the start of the conveyancing process. If the buyer's solicitor has not submitted the request within the first two weeks, ask your estate agent to chase.

Property price exceeds the LISA cap

If your property is priced above £450,000, the buyer cannot use their LISA funds for the purchase. If the buyer withdraws LISA funds for any purpose other than a qualifying property purchase, they face a 25% penalty (which effectively loses the government bonus plus some of their own savings). This is the buyer's problem, not yours, but be aware that a buyer who was relying on LISA funds may need to restructure their deposit or withdraw from the transaction if the property exceeds the cap.

Buyer's mortgage valuation versus Help to Buy valuation

If you are selling a property with a Help to Buy equity loan, two separate valuations are in play: the RICS valuation for the equity loan redemption, and the buyer's mortgage lender's valuation. These are independent processes and may produce different figures. A discrepancy between the two can cause confusion but does not create a legal problem — the redemption figure is based solely on the RICS valuation submitted to Homes England. For more on how the buyer's mortgage valuation works, see our guide on mortgage valuations for sellers.

Choosing the right buyer when Help to Buy is involved

If you receive offers from multiple buyers and one of them is using a LISA or Help to Buy ISA, the savings product alone should not count against them. A chain-free first-time buyer with a LISA is often a stronger prospect than a chained buyer without one, because the LISA delay (30 days) is typically shorter than the delays caused by chain dependencies.

The key questions remain the same as for any buyer: Do they have a mortgage agreement in principle? Is their deposit sufficient? Have they instructed a solicitor? Are they chain-free? For a framework on evaluating competing offers, see our guides on how to choose the right buyer and selling to a first-time buyer.

Help to Buy interest charges for sellers

If you have had your Help to Buy equity loan for more than five years, you will have been paying monthly interest fees. In the first five years, the equity loan is interest-free. From year six, you pay a fee of 1.75% of the loan amount, rising annually by the Consumer Price Index (CPI) plus 2%. These fees can become significant over time and are a common reason why Help to Buy homeowners decide to sell or remortgage to repay the loan.

When you sell, any outstanding interest fees must be settled as part of the redemption. Your solicitor will ensure these are included in the final redemption figure from Homes England.

Sources

• Homes England — Help to Buy equity loan scheme guidance and redemption process — gov.uk/government/collections/help-to-buy-equity-loan-guidance
• HM Treasury — Help to Buy ISA scheme rules — gov.uk/government/publications/help-to-buy-isa-scheme-rules
• HMRC — Lifetime ISA guidance for property purchases — gov.uk/lifetime-isa
• UK Finance — Mortgage Lenders' Handbook, Help to Buy chapter — ukfinance.org.uk
• Money and Pensions Service (MoneyHelper) — Help to Buy equity loan explained — moneyhelper.org.uk
• RICS — Valuation standards for Help to Buy redemptions — rics.org
• Land Registry — Help to Buy charge removal process — gov.uk/government/organisations/land-registry
• Citizens Advice — Help to Buy equity loan: your rights when selling — citizensadvice.org.uk

Frequently asked questions