Selling a Home With a Help to Buy Equity Loan — What You Must Do

Selling a Home With a Help to Buy Equity Loan

Selling a property that carries a Help to Buy equity loan is not the same as selling an unmortgaged or conventionally mortgaged home. The government holds a legal charge over your property, and that charge must be redeemed — in full — at the point of sale. You cannot transfer the equity loan to a new property, defer repayment, or negotiate a partial settlement on sale.

The Core Rule: Full Repayment on Completion

When you sell your Help to Buy home, the equity loan is repaid from your sale proceeds on the day of legal completion. Your solicitor will:

1. Obtain a redemption statement from Target HCA confirming the exact repayment figure

2. Deduct that amount from the sale proceeds before releasing the balance to you

3. Pay Target HCA on completion

4. Arrange for the equity loan charge to be removed from the title at HM Land Registry

The repayment figure is calculated as your original loan **percentage** applied to the final sale price agreed with your buyer. If you originally borrowed 20% and you sell for £350,000, the government receives £70,000 — regardless of whether that is more or less than you originally borrowed in cash terms.

Do You Need a RICS Valuation When Selling?

When selling at open market value, Target HCA generally accepts the actual sale price as the basis for calculating the repayment — you do not necessarily need a separate RICS valuation in addition to the sale itself. However, you must notify Target HCA of the sale and provide evidence of the agreed sale price. Your solicitor will manage this as part of the conveyancing process.

If you are selling to a connected party or at a discounted price, Target HCA may require an independent RICS valuation to ensure the repayment reflects true market value.

Timing: When to Contact Target HCA

Do not wait until you have a buyer before notifying Target HCA. Contact them as soon as you decide to sell, so they can:

• Confirm your current loan balance and percentage
• Issue guidance on the process and required documentation
• Ensure there are no administrative holds on your account

A smooth sale depends on Target HCA being engaged early. Delays at their end can hold up completion, and in a chain sale this can have serious knock-on consequences.

What Your Solicitor Needs From Target HCA

Your conveyancing solicitor will need:

• A formal redemption statement from Target HCA
• Confirmation of the charge reference and how payment should be made
• Details for the legal discharge of the charge post-completion

Ensure you instruct a solicitor with experience in Help to Buy transactions — not all high-street conveyancers are familiar with the process, and errors here can delay your sale significantly.

What Happens to the Proceeds After Repayment?

After repaying the equity loan and your conventional mortgage, the remaining sale proceeds are yours. If your property has appreciated significantly and your original equity loan was 20%, a large proportion of your gains will flow to the government.

**Example:** You bought for £200,000 (20% equity loan = £40,000). You sell for £350,000. The government's 20% share = £70,000. You repay your conventional mortgage separately. The £30,000 "profit" on the equity loan (compared to the original £40,000 borrowed) goes to the government.

Use our [Help to Buy calculator](/help-to-buy-calculator) to see how the equity split looks at different sale prices before you market your home.

Key Points

• The equity loan must be repaid in full at the point of sale — it cannot be transferred
• Repayment is your original loan percentage applied to the actual sale price
• Contact Target HCA as soon as you decide to sell — do not leave it late
• Your solicitor handles the mechanics and pays Target HCA on completion
• Instruct a solicitor who has handled Help to Buy redemptions before