The Taylor&Emmet Blog

Paying back your Help to Buy loan.

GET IT RIGHT FIRST TIME: Sarah Gaunt is here to help first time buyers get to grips with the conveyancing process. After explaining how to take out a Help to Buy loan, this month, she talks about paying it back…

How do I let Help to Buy know I want to pay back my loan?

Before Help to Buy can provide a redemption figure, you will need your property valuing by an RICS certified surveyor.

The surveyor’s report must then be sent to Target (the agent appointed to deal with Help to Buy redemptions) and your nominated solicitor, who must be capable of undertaking this type of transaction.

A valuation report is only valid for three months, so if you are unable to pay off the loan within this time, you will need to obtain a desktop valuation and submit this to Target for approval. Regardless of your circumstances, the redemption must be completed within six months of the original valuation.

How do I start the Help to Buy redemption process?

Once you have instructed a solicitor, you will need to fill in either form A or B, depending on whether you are selling the property or not. They can be found at the back of your customer information pack, or by visiting: 

The completed forms must be sent to Target, along with payment of its £200 administration fee.

Once all of the above is done, a letter will be sent to you and Target confirming the amount that needs repaying for the charge on your property to be removed from the Land Registry’s records.

How does the redemption tie in with the sale of my property?

At least 15 days before completion, your solicitor will contact Target and provide the necessary legal undertakings.

Before the paperwork can be submitted, however, your solicitor will need proof of funds (if the redemption does not rely on the sale of the house) or the agreement of a completion date with the rest of your chain.

If you are redeeming without selling, you also need to ensure the money needed to pay off the loan is with your solicitor in good time.

On the day of completion, your solicitor will transfer the redemption money to Target and request a signed and sealed DS1 form, which is the document that needs submitting to the Land Registry. Alternatively, Target will make contact direct to remove the charge electronically.

If the redemption is not related to the sale of your property, you will receive an updated electronic copy of the land register for your records, confirming the Help to Buy loan has been removed.

If you are a first-time buyer with a question about moving home, our residential property expert, Sarah Gaunt, would love to hear from you. Email:

Sarah Gaunt

Sarah is a partner in our residential conveyancing department and is accomplished in all areas of the discipline. For more information on this topic email or call her on 0114 218 4060.

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