Croydon - When Help to Buy turns to Help to Sell

Help! Iv'e purchased a "Help to Buy" property and now I need to sell it!!!..... 

For anyone in this position, please read our help inormation below and feel free to get in touch. 

As agents we get to see first-hand what happens when these buyers are coming off of their scheme and want to move on.

One wouldn’t be blamed for imagining that a practically brand new, one careful owner apartment will sell easily…sadly not.

Much can be aligned with the new car scenario, as soon as you drive it off the forecourt its already a depreciating asset, but…property is and has always been an appreciating asset…no?

In some cases yes but not with the Help to Buy scheme. I met a client who is coming off of the scheme and would like to move on, so invited me to value their home.….but I couldn’t!

Like all valuations (I prefer appraisals) I take a few hours to research the property and then appraise accordingly, an opinion based on facts.

In this instance there were already 11 available in their development, and all at prices below what they paid, some have been on for 6 months and there was even a brand new one available at 10% below what they paid. Further research showed that in the same postcode and price bracket there were 69 two bedroom apartments available, and only eight sold and eight under offer.

This is the real fallout from these schemes, too much choice…and no more schemes. Yes, the rise in rates over the past two years would have wiped out a lot of buyers who simply can’t get a mortgage and who may have been interested in this smart, second hand apartment, that actually has a sensible service charge  (I’ve seen some at £5-8k a year!)  but no, not at the moment so …when and what is the advice?

The advice, is always honest and was about speaking to a broker first to find out the options once the scheme finished, from there does that then create a financial option to potentially rent the property out, and have someone else  paying the mortgage whilst the market improves, or simply just stay in touch and keep the owner up to date on the market and their development over the coming months….and that’s what we are doing. 

Here is our five point plan for anyone that finds themselves in this situation. 

1. Research a good *Personal Agent

*a Personal Agent (over a High Street Agent)  doesn’t have KPIs and targets to hit to get your property on, they work on word of mouth, reviews and recommendations!

At this point, you need solid, honest, and helpful advice. Try using a personal agent locally with experience in different markets. Someone who has experienced different schemes and changes in regulation – they will be able to give clear and honest advice and will be there to support and help you get where you need to be.

2. Assess the Current Market Conditions: Do this with your chosen agent (they will do a lot of the legwork for you). Get an understanding of the Croydon and local housing market dynamics, including supply and demand for properties similar to yours and those coming off the Help to Buy scheme.

3. Explore Options with a Mortgage Broker: A personal agent will work closely with a qualified mortgage broker. By speaking to someone independent (and helpful and experienced) they can explore your financial options post-scheme. This might include refinancing, transitioning to a traditional mortgage, or exploring rental opportunities.

4. Consider Renting Out the Property: If selling isn't feasible in the current market, discuss the possibility of renting out the property as an alternative. This can help cover mortgage payments while waiting for market conditions to improve. Sold.Buy.Simon’s lettings team (Let.Buy.Laura) can help with market appraisals and all the legislation and bits to keep up with.

5. Stay Informed: Keep up to day with your market trends, developments in your area, and any changes in property values (Simon will do this for you). We will continue communicating with you to assist you in navigating your options effectively.