Help to Buy deadline extended

Two-month reprieve for home buyers using scheme amid Covid-19 delays, writes Vicky Shaw of PA

Home buyers using the Help to Buy equity loan scheme in England are being given an extra two months to legally complete their purchase, due to delays caused by coronavirus.

Homes England said that, while the scheme will end on March 31 2021, those who are currently using it will have more time to get the keys to their home.

Information placed on the gov.uk website said: “We are extending legal completion to May 31 2021 due to delays caused by coronavirus.

“This allows an extra two months for home builders to complete the build and for home buyers to legally complete and get the keys to their home.

“There will be no more extensions, so we are asking home builders to continue to build at pace.

“Please check with your home builder and conveyancer that you’re able to meet these dates.”

There is another pressing reason for home buyers to complete purchases, as a stamp duty holiday is due to expire at the end of March.

Home buyers making purchases up to £500,000 who legally complete between July 8 2020 and March 31 2021 do not have to pay stamp duty, saving many people thousands of pounds.

But from April 1 the stamp duty threshold will revert from £500,000 to £125,000. First-time buyers will still be eligible for stamp duty relief.

A new Help to Buy equity loan scheme, for first-time buyers only, starts on April 1 2021 and will run until March 31 2023.