My Help to Buy Equity Loan experience: Joella talks about the buying process & living in a new build

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Joella gives her first-hand experience of the Help to Buy Equity Loan scheme. We discuss living in a new development and her thoughts on the scheme 5 years after buying her home. She also talks about the cladding scandal, which concerns more than just cladding and is actually a building safety crisis affecting the whole housing market. The Help to Buy scheme offers first-time buyers an equity loan of up to 20% (40% in London) of a property’s value to buy a new build home.
To support leaseholder being affected by the building safety crisis, please visit www.BuildingSafetyCrisis.org and follow PolluterPaysBSB.
CONTACT DETAILS
Email: lemuelstudios@gmail.com
Instagram: @SelfInvested_UK
Twitter: @InvestedSelf
LINKS MENTIONED/USED
Barking Riverside clip - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-ShrkWfjE6qI.html
ITV News clips - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-BEGVwH-mI9I.html
Help to Buy Premium (Which article) - www.which.co.uk/news/2019/04/first-time-buyers-face-a-33000-premium-when-using-help-to-buy/
Help to Buy Premium (Really Moving) - www.reallymoving.com/press-releases/october-2019/first-time-buyers-using-help-to-buy-pay-10-more-for-new-homes
Second Which article - www.which.co.uk/news/2020/06/exclusive-one-in-seven-help-to-buy-homes-lose-value-despite-local-house-prices-soaring/
National Audit Office - www.nao.org.uk/wp-content/uploads/2019/06/Help-to-Buy-Equity-Loan-scheme-progress-review.pdf
OTHER PLAYLISTS
My Shared Ownership Experience (series) - ru-vid.com/group/PLUG_SDz9gLQKqInQrRbCC21S4pZpp4JrN
Shared Ownership - ru-vid.com/group/PLUG_SDz9gLQI3lKk_GIxi9Kgn_GeCaDDp
Help to Buy Equity Loan - ru-vid.com/group/PLUG_SDz9gLQJIBs_0uHERF90GRFLamKv_
CHAPTERS
Intro 00:00
Tell us about your flat 01:10
Buying process 05:16
Help to Buy application process 09:16
Help to Buy premium 11:28
What are your thoughts on the Help to Buy scheme now? 16:08
What advice do you have for prospective Help to Buy users? 20:23
What are your future plans (fire safety crisis)? 22:39
Building Safety Crisis 27:44
Outro 31:05
ABOUT ME
I'm Lemuel. I'm not a financial advisor. I'm not an expert. I'm just a regular guy that enjoys talking about how we can do better with money.
If you want to learn more about how you can do better with money, then subscribe to the channel and hit the notification bell so you get an alert whenever I upload a video.
DISCLAIMER
This video is not meant to address the specific circumstances of any particular individual. It is created for educational purposes only. You should not rely upon it as legal, financial or professional advice, or a substitute for it. I do not accept any liability whatsoever for errors, omissions or misstatements contained therein. You should consult a suitably qualified professional if you require specific advice or information.

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Опубликовано:

21 фев 2022

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Комментарии : 102

@ChikaW 2 года назад

Has it been 8 months?! Time flys. Congratulations on your new born. Great video. It’s refreshing to hear from a positive (or at least balanced) help to buy buyer.

@SelfInvested 2 года назад

Thank you 🙏🏿 It does indeed! We need to get you on to talk about your experience of paying back the Help to Buy loan. I know it will be really helpful to many!!

@JustTheHighlights 2 года назад

Glad you're back! Another great video from a real buyer's personal experience.

@SelfInvested 2 года назад

Thank you! Glad to be back 😁 Sorry it’s been so long!

@therealist2000 2 года назад

Welcome back! looking forward to more videos this year :)

@SelfInvested 2 года назад

Thank you! I plan to make many more ;)

@cookiejar01 2 года назад

So we bought our property with Help to Buy last summer and were able to negotiate on the price (3% lower). But the way we did it was we turned the tables on them. We went for a property that was above the Help to Buy max price and we said "Oh unless you lower the price we can't afford it". And so they did!

@SelfInvested 2 года назад

Clever move! Did you buy off-plan as well? Did you have a similar experience with the open day?

@cookiejar01 2 года назад

@@SelfInvested Sort of. The property hadn't been finished yet but only the final touches were remaining so we were actually able to go inside and have a look. The property hadn't been marketed on rightmove, etc. when we saw it. So basically we saw it before anyone else. There was no open day. From what Joella described that doesn't sound fun!

@SelfInvested 2 года назад

@@cookiejar01 Thanks for coming back to me!

@rebeccapeace 2 года назад

I'm in this position at the moment! Going to view a plot they have reserved for free until we look at the property on Saturday.

@SelfInvested 2 года назад

@@rebeccapeace Good luck with it all! Don’t feel pressured to do anything!

@dreamEternal 2 года назад

The 30 minutes flew, great/calm and honest vibes from the both of you - thanks so much, was very helpful

@SelfInvested 2 года назад

Glad to hear it! You’re welcome 😉Thank you for leaving a comment, it’s very much appreciated 🙏🏿

@sugarfury 2 года назад

Really happy you are back, and congrats on your newborn and addition to your family. Keep up the great work and make time for you and input selfcare too x

@SelfInvested 2 года назад

Thank you, Deborah 😊🙏🏿

@Mischart 2 года назад

I appreciate the honesty and directness of this interview

@SelfInvested 2 года назад

Hope you found it useful... Thanks for watching!

@cookiejar01 2 года назад

Glad you're back!

@SelfInvested 2 года назад

Me too! Thanks for the message :)

@deepamistry-longley6664 2 года назад

Thanks for your video - great work as usual and real experiences show the truth about these schemes

@SelfInvested 2 года назад

My pleasure, Deepa :) I hope you’re well!

@deepamistry-longley6664 2 года назад

One very important point on the price differentials between help to buy or non help to buy. All new build flats come at a huge premium. The flats are built smaller. So with the premium and squeezing more dwellings into a space, the developer will always get a financial benefit.

@SelfInvested 2 года назад

Yes, I agree. It’s a new build premium which isn’t unique to the Help to Buy scheme. However, I think that there is clear evidence to suggest that the scheme has help push up the price of new builds by making more money available to buyers

@Michael.P247 Год назад

@@SelfInvested I think the key to buying new builds is buying in the right location. I’ve watched new builds go up in price over the past 6-8 years, this is also due to the fact that there’s a lack of properties in the uk 🇬🇧 generally. Bought my first property in 2005…old build flat, and I’ve since moved on to a house. I’ve never ought new builds…..but I’d invest in one ☝️ if we ever go into a recession & developers reduce the price of their existing stock. Old builds are better

@damzon2wheels657 2 года назад

Would be interesting to see the thoughts of owners after the 5 years, in terms of the interest of the equity loan and paying it off.

@SelfInvested 2 года назад

I’m working on it! Hopefully, should have someone but think they need a bit of convincing!

@damzon2wheels657 2 года назад

@@SelfInvested welcome back btw! Congratulations on the addition to the family 🎉

@SelfInvested 2 года назад

@@damzon2wheels657 Thanks bro! And thanks for coming back to watch 🙏🏿

@lolatylar2882 2 года назад

Awww congratulations, welcome back

@SelfInvested 2 года назад

😊😊Thank you!

@Dr196903 2 года назад

Hello Friend, It has been a long time indeed since your last video and I sincerely wish everything is going well with the No.2 arrival and Congrats too! Looking forward to watching more videos and your predictions on potential interest rate hikes so on.

@SelfInvested 2 года назад

Thank you! And, yes, all is going well with no. 2. She’s very chunky. I hope I can be back more regularly now!

@amandawoods3482 2 года назад

Thank you both, this is very useful!

@SelfInvested 2 года назад

Glad to hear it! You’re welcome ;)

@1zuta 2 года назад

We bought a new build flat which we offered on in 2019 on the help to buy scheme. We managed to negotiate down on the new build. This was from £465.000 to £441.000. so it is possible.

@SelfInvested 2 года назад

Thanks for sharing! Did you buy off plan or when it was built?

@1zuta 2 года назад

@@SelfInvested We bought when it was built. These were independent local builders outside of the usual retail builders such as persimmons, Taylor wimpy etc. We had previously been looking for 2 years but found negotiating with the typical new home companies quite difficult to negotiate on price as they really tried to sell the property to. Whereas when we dealt with independent or less well known developers they were more willing to negotiate on price. Two years since we completed we are really happy with the purchase. I would advise anyone to haggle and to be open minded about trying less well known developers but also buying from builder as they tend to be less focused on sales.

@SelfInvested 2 года назад

@@1zuta Useful tips! Makes sense as well. I can imagine the bigger developers are more commercial and harder to budge

@stackmaintain7292 2 года назад

Very informative. Thank you very much and God bless.

@SelfInvested 2 года назад

You’re welcome :) I’m glad you found it useful!

@deefromdlbtheatrew1646 2 года назад

Thanks for the video and congratulations on the growing family. Where is the best place to look for a help to buy property

@SelfInvested 2 года назад

You’re welcome, Dee, and thank you! You can find them in the usually places, Zoopla, Rightmove, etc. They usually advertise the fact you can get a Help to Buy loan. Also, you can check the developers’ websites. If I find a specific site, I’ll let you know ;)

@wina6631 Год назад

Wow this is shocking! I thank God I have always been against Leasehold properties, the thought of somebody else owing the land that my property would sit has never made sense to me! It’s one of the biggest scams in Homeownership.

@SelfInvested Год назад

I know! Technically, the freeholder owns the building as well, the leasehold just has the right to live in it for a specified number of years…

@wina6631 Год назад

@@SelfInvested Yes sounds absolutely terrible, I’ve always said unless there is no other choice but to be on the street a LH would be a no. Also the way the service charges are managed isn’t great, things can change in moment and you are at the mercy of the Freeholder.

@Jidesco 2 года назад

Welcome back!

@SelfInvested 2 года назад

Thank you! :)

@ChannetteCarleoTV 2 года назад

Wow its been a minute but Im back too. Firstly congratulation on your new baby and thank you so much for this useful video. This was perfect for me literally this is the scenerio im going for, the area and alsoit really helped bring the fire safety issue to my attention which i didnt think of and now has me questioning the scheme as I definetely want to sale after a certain period of time using the scheme. I do however have one question which im unsure of ...did she say she still has to pay service charge and ground rent? because I thought that was only in respect to shared ownership?? and if you have to pay service charge with help to buy is this something you do from the beginning of your mortgage or 5 years in?

@SelfInvested 2 года назад

Hey Channette 👋🏿 Thank you! Ground rent and service charge are not unique to Shared Ownership or Help to Buy. They are typical of leasehold properties, which usually take the form of flats. Having said that, ground rent will soon (within the next 3 months) be abolished. So, if you're buying a new build with Help to Buy, this isn't something you should have to worry about - but do check! Service charge is usually paid where there are shared facilities or areas between properties that require maintenance, such as roofs, lifts and outdoor spaces. If there's a service charge with the property you buy with Help to Buy, you pay that from the beginning...

@ChannetteCarleoTV 2 года назад

@@SelfInvested Thanks for responding this has helped me a lot keep the videos coming

@SelfInvested 2 года назад

@@ChannetteCarleoTV You’re welcome! Hopefully one’s coming soon 🤞🏿

@nitrot8758 2 года назад

Great video, very informative!!

@SelfInvested 2 года назад

Thank you! Glad it was helpful :)

@Proffesionalism 2 года назад

Great to have you back, congratulations on your baby daughter!! This channel has a lot of important conversations for me to listen to as a young professional needing to use these schemes to afford to move out of home in London. I know hindsight is 20/20 but just wondering if Joella could have repaid her 20% Help to Buy Loan at the 'new market value' during this cladding crisis? The £ value would have fallen making the Govt part cheaper to repay? When this debacle would be over and the property value goes back to normal, the total owed would be less. Or was this something being refused as these properties were essentially worthless? Or was the property being given unfairly high valuations ? If anyone could shed some light, it would be much appreciated. With these govt schemes, shared ownership, help to buy, they all seem like massive debt traps and with the current turmoil does seem to be a risky time to get a first property... #dominos #helptobuoy

@SelfInvested 2 года назад

Hey Zac! Thank you! I actually suggested this to Joella back in August when I saw an article about this on the Inside Housing website but she said she wasn’t able to after looking into it. Not sure why exactly… I’ll ask again, though. It might be because you would have to use cash (as opposed to a mortgage/loan) as lenders will not give a mortgage on such a property :/ Here’s a link to the article if you’re interested: www.insidehousing.co.uk/news/help-to-buy-leaseholders-can-now-sell-homes-at-cladding-affected-value-says-homes-england-72058?Ocean%20Media%20Group&IH-DAILY-10-8-2021-GR&dm_i=1HH2,7HO3Y,BP6X8Z,UGI85,1

@Proffesionalism 2 года назад

Thanks for sending that article. My friend said he paid into his mortgage, then remortgaged the part he already paid back, to pay off the govt Help to buy before selling his property. Joella probably could not take the money she paid into her mortgage back out...

@SelfInvested 2 года назад

I think the problem for her is banks are not offering mortgages (or remortgages) for properties such as hers without an EWS certificate because of the cladding/building safety crisis

@pattersonellen 2 года назад

How would cladding crisis affect new builds since Grenfell? It can be authenticated by buildes from the start there is no fire risk cladding, right?

@SelfInvested 2 года назад

Have a watch of this video. I explain it all… ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-nPtYqgTgsmU.html

@rayhan15243 2 года назад

When will developments on the First Home scheme be available in London? Is the scheme still in the early stages?

@SelfInvested 2 года назад

Hey Rayhan! So, it's only the First Homes pilot scheme which has been launched so far and London wasn't included in it. It's not likely we'll see First Homes in London until 2023, at the earliest, but I cover this in more detail and explain why in this video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-Rsp8vvFq81g.html

@nkckek2131 2 года назад

Nice video bro, very informative

@SelfInvested 2 года назад

Thanks, bro! Glad you liked it

@deepamistry-longley6664 2 года назад

Even on the negotiation front - there is absolutely NO room to negotiate price. The mention of that gets you ignored by sales staff. There's so much rush perception created that they in effect don't need a negotiation. If you don't pay their price someone else is waiting in line to.

@SelfInvested 2 года назад

It sounds like a very deliberate tactic. Hopefully, Joella’s experience will help more people become wise to it!

@T-London 2 года назад

Think it all depends on the type of development. Huge developers will not negotiate but May offer you stamp duty. There was a smaller developer who was willing to come down on price but I decided it wasn’t for me.

@88lauradiana 2 года назад

Hi! Thank you for your video! I have a question.. Can one sell without having the HTB cleared? I thought that wasn't an option.

@SelfInvested 2 года назад

Hi Laura! Thanks for watching :) Yes, you’re right. When you sell, you have to repay the loan. Did we say otherwise in the video?

@88lauradiana 2 года назад

@@SelfInvested thank you for clarifying this aspect as I haven't fully understood it! Much appreciated.

@SelfInvested 2 года назад

You’re welcome!

@88lauradiana 2 года назад

@@SelfInvested I hope all Fire Safety aspects get to a resolution ASAP at your end! Thank you very much for your content as well as for your prompt & helpful support! Have a great day! ❤️

@SelfInvested 2 года назад

@@88lauradiana You too! ;)

@QuarterTime25 2 года назад

Really enjoyed this! Please if you can do a vedio on service charges.

@SelfInvested 2 года назад

Thanks for watching! I’m happy to hear that :) What specifically would you like to know about service charges?

@QuarterTime25 2 года назад

@@SelfInvested might sound silly but whether one could expect more on new build apparements than slightly older ones and roughly how much they tend to be and can go up by year on year. I've heard some horror stories of how they can just go up by some crazy amounts.

@SelfInvested 2 года назад

@@QuarterTime25 I think I may have covered this in one of my videos: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-okjtPNQHdG0.html Have a watch and let me know if it does…

@LeeEverittProperty 2 года назад

He's back!! How you been!?

@SelfInvested 2 года назад

I know! It’s been so long!! I’ve been fine, though. Just adjusting to life with two little ones. It took more adjustment than I thought it would! Hope you’re well?

@1zuta 2 года назад

Hey congratulations on your 2nd. Your twice the dad now. But yeah it will take time but you will find a way. Good to see your back. You've been missed.

@LeeEverittProperty 2 года назад

@@SelfInvested it's different isn't it! Glad you're doing well my friend! Look forward to seeing you back!

@SelfInvested 2 года назад

@@1zuta Thanks, Mark! I appreciate the love :) It’s good to be back. I hope you enjoy the video!

@rainbowheels 2 года назад

I negotiated 5k off my new build flat that was help to buy. It's a misconception that you can't negotiate.

@SelfInvested 2 года назад

Thanks for sharing! Did you buy off-plan or after it was built?

@rainbowheels 2 года назад

@@SelfInvested After it was built :)

@SelfInvested 2 года назад

@@rainbowheels Thanks for coming back to me! You're the second person to say that they bought their flat after it was built and negotiated money off. It would be good to hear of people doing this off-plan as well

@mf732 2 года назад

awwww congrats that's my sis name whoop whoop

@SelfInvested 2 года назад

whoop, whoop! Thank you! :)

@indiebloom2425 2 года назад

Good to see you and have you back!

@SelfInvested 2 года назад

Thanks, brother!

@rayhan15243 2 года назад

How do the repayments work after the five years on H2B?

@SelfInvested 2 года назад

Hey Rayhan! After 5 years, you start paying interest on the loan. The payments you make are not repayments. Repayments have a specific process which I cover in this video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-Qz-q8KdrZHg.html My next video will probably be on how the interest for the loan works…

@rebeccapeace 2 года назад

You will pay 20% of the house value after the 5 years. You can pay this in a chunk or re mortgage and have it integrated into your new mortgage. If you move out sooner than 5 years you pay it off in a chunk.

@rayhan15243 2 года назад

@@rebeccapeace So you either pay the whole loan amount after the five years? Or you remortgage which essentially means the new mortgage you pay includes the h2b loan repayment?

@rebeccapeace 2 года назад

@@rayhan15243 Yes exactly that :)

@shesonyoutube 2 года назад

@@rebeccapeace thanks for that👌🏽

@polmishap5287 2 года назад

Slavery. It shows how illusory property "ownership" is... You as "borrower" really just sign a promise to transfer your effort and time over to a bank which in turn takes ownership over that promise and the asset without actually lending anything.. You the borrower deposit a promise to the same value as asset and pay interest for the privilege of effectively borrowing from yourself and risking handing over said asset should you ever fail to make repayments.

@SelfInvested 2 года назад

All the more reason to find a property that’s worth putting your effort and time into