2017-21 help to buy scheme - megathread. All help to buy discussion here please

z0oT

z0oT wrote: »

The Agent has it down on the Daft.ie page that it is eligble for the Help to Buy scheme. Upon talking to the agent I was told that couples who have bought into the development previously in the last few months have used the Help to Buy scheme.

But... upon checking the list of qualifying contracters on the Revenue website HERE (PDF), I can't find the developer on the list.

So, just looking at some of the other new builds around where we want to buy, there are at least two more new builds (other than the one we've paid a booking deposit into) where it's advertised that the Help to Buy can be used, but the developer isn't listed on the PDF list on the Revenue website.

Maybe it's not uncommon.

I wonder how difficult is it as a builder to become a qualified builder with Revenue for the Help to Buy scheme?

awec

z0oT wrote: »

So, just looking at some of the other new builds around where we want to buy, there are at least two more new builds (other than the one we've paid a booking deposit into) where it's advertised that the Help to Buy can be used, but the developer isn't listed on the PDF list on the Revenue website.

Maybe it's not uncommon.

I wonder how difficult is it as a builder to become a qualified builder with Revenue for the Help to Buy scheme?

I think it's straightforward.


But I guess that developers may setup separate companies for each development for financial reasons, so they may need to re-register these new companies each time.

Blanchy90

z0oT wrote: »

So, just looking at some of the other new builds around where we want to buy, there are at least two more new builds (other than the one we've paid a booking deposit into) where it's advertised that the Help to Buy can be used, but the developer isn't listed on the PDF list on the Revenue website.

Maybe it's not uncommon.

I wonder how difficult is it as a builder to become a qualified builder with Revenue for the Help to Buy scheme?

They may be registered under a different name, that was the case for us

GingerLily

Blanchy90 wrote: »

They may be registered under a different name, that was the case for us

Me too, the EA will know what name to look for.

bizebee

awec wrote: »

5% of lenders valuation to a maximum of 20,000.

Is the lenders valuation the amount the bank say the property is worth once built/completed?

autumnbelle

bizebee wrote: »

Is the lenders valuation the amount the bank say the property is worth once built/completed?

I think it’s in your mortgage contract or purchase price

awec

bizebee wrote: »

Is the lenders valuation the amount the bank say the property is worth once built/completed?

Yes.

LittleFox

Hi guys I just wanted to check, we are approved for max relief. When we queue up to buy our house we have to pay €5000 on the day to secure it and then the rest of 10% deposit after 28 days when we sign the contracts. Say our deposit is €40,000 does this mean we pay the remaining €15,000 on the day, sign the contracts and then the builders get the remaining €20,000 from HTB after the fact? Thanks

d0157063

Hi, our H2B claim was verified 2 months back by developers and status changed to "Claim Approved". Since then we thought all good and done, but received email from developers solicitor that funds haven't reached their account, very strange. Has anyone encountered this issue or know more details please ? We are in closing phase and don't want any unexpected surprises, thanks

GingerLily

vikas.kshatriya wrote: »

Hi, our H2B claim was verified 2 months back by developers and status changed to "Claim Approved". Since then we thought all good and done, but received email from developers solicitor that funds haven't reached their account, very strange. Has anyone encountered this issue or know more details please ? We are in closing phase and don't want any unexpected surprises, thanks

Our developer put the claim in (we got the message 'Help to Buy Approved') and we received notice to close 5 days later (after it was received).

Who put in the claim - your solicitor or the building contractor?

GingerLily

LittleFox wrote: »

Hi guys I just wanted to check, we are approved for max relief. When we queue up to buy our house we have to pay €5000 on the day to secure it and then the rest of 10% deposit after 28 days when we sign the contracts. Say our deposit is €40,000 does this mean we pay the remaining €15,000 on the day, sign the contracts and then the builders get the remaining €20,000 from HTB after the fact? Thanks

Some developments don't accept HTB as part of the 10% deposit - in that case you would need to have a deposit of 35k with contracts.

d0157063

GingerLily wrote: »

vikas.kshatriya wrote: »

Hi, our H2B claim was verified 2 months back by developers and status changed to "Claim Approved". Since then we thought all good and done, but received email from developers solicitor that funds haven't reached their account, very strange. Has anyone encountered this issue or know more details please ? We are in closing phase and don't want any unexpected surprises, thanks

Our developer put the claim in (we got the message 'Help to Buy Approved') and we received notice to close 5 days later (after it was received).

Who put in the claim - your solicitor or the building contractor?

Got email from developers solicitors, so its them. I forward to my solicitor who in turn to them. All I can see on my Revenue is "You have an approved claim for Help to Buy." with only View button. This status changed when they verified the claim and I though that is the last step after which funds are automatically transferred to developers account, which didnt happen in our case
Also, are you saying separate notification is received when funds are transferred, we didnt receive any correspondence from Revenue at all

GingerLily

vikas.kshatriya wrote: »

Got email from developers solicitors, so its them. I forward to my solicitor who in turn to them. All I can see on my Revenue is "You have an approved claim for Help to Buy." with only View button. This status changed when they verified the claim and I though that is the last step after which funds are automatically transferred to developers account, which didnt happen in our case
Also, are you saying separate notification is received when funds are transferred, we didnt receive any correspondence from Revenue at all

No, I didn't receive further info from revenue - my bank asked for proof it had been paid before drawdown - so a copy was sent to my solicitor confirming they received it!

cant26

GingerLily wrote: »

Some developments don't accept HTB as part of the 10% deposit - in that case you would need to have a deposit of 35k with contracts.

Really? I thought the whole point of HTB was to make it more attainable for first time buyers to make up their deposit. I really hope this isn’t common practice

GingerLily

cant26 wrote: »

Really? I thought the whole point of HTB was to make it more attainable for first time buyers to make up their deposit. I really hope this isn’t common practice

It seems common enough for higher priced developments.
The intention was to help with deposit but Revenue can't force the developer!

dellas1979

Building here. Drew down first stage of mortgage. Claim codes etc are with solicitor. So, think Ive it all done....
How long does anyone know in their experience will I be waiting to receive money?
Thanks

autumnbelle

Does anyone know if your house build is valued too high in comparison to the mortgage your offered is there anyway to claim this- our mortgage to cost of build will be over the 70% but with the valuation will be 65% can we get a loan to build shed or finalise house and include it to make up the loan to value of 70%

autumnbelle

autumnbelle wrote: »

Does anyone know if your house build is valued too high in comparison to the mortgage your offered is there anyway to claim this- our mortgage to cost of build will be over the 70% but with the valuation will be 65% can we get a loan to build shed or finalise house and include it to make up the loan to value of 70%

Just bumping this to see if anyone knows?

Daniogroove

Are you saying you're building a house that will be worth less money when it's finished than the cost of building it?

GingerLily

Daniogroove wrote: »

Are you saying you're building a house that will be worth less money when it's finished than the cost of building it?

No the process increases the value.

Example :

Build costs 300k, fund 60k yourselves and borrow the remaining 80%.

The house is then valued at 400k when complete, so the loan 240k is only 60% of the value of the property.

No idea what the policy is and it seems unfair for self builds, as you'd always assume the value of the finished house would be worth more then the cost of site and build!

Daniogroove

GingerLily wrote: »

No the process increases the value.

Example :

Build costs 300k, fund 60k yourselves and borrow the remaining 80%.

The house is then valued at 400k when complete, so the loan 240k is only 60% of the value of the property.

No idea what the policy is and it seems unfair for self builds, as you'd always assume the value of the finished house would be worth more then the cost of site and build!

Ah i get ya now.

My friends up the road built a 3000sq ft house on their own site. Mortage of 180, with about 55 of their own money. House is easily valued over 420k so i wouldn't worry about that.

The help to buy is for the build cost.. the valuation at the end is more for the banks and your home insurance.. the LTV is just making sure you borrow at least 70% of build cost, not value.

autumnbelle

Daniogroove wrote: »

Ah i get ya now.

My friends up the road built a 3000sq ft house on their own site. Mortage of 180, with about 55 of their own money. House is easily valued over 420k so i wouldn't worry about that.

The help to buy is for the build cost.. the valuation at the end is more for the banks and your home insurance.. the LTV is just making sure you borrow at least 70% of build cost, not value.

We are being told that the amount we need to borrow has to be greater then 70% of the value. Would love and be so relieved if its 70% of build cost?

GingerLily

autumnbelle wrote: »

We are being told that the amount we need to borrow has to be greater then 70% of the value. Would love and be so relieved if its 70% of build cost?

The revenue website says it used the 'Purchase Value', which is the approved valuation by the lender when you take out the mortgage.

Can you take out a larger mortgage to furnish to keep you above 70%?

Daniogroove

autumnbelle wrote: »

We are being told that the amount we need to borrow has to be greater then 70% of the value. Would love and be so relieved if its 70% of build cost?

It's just phrased badly. When they say that they're talking about people buying a new home. Give revenue a ring if you really want to put your mind at ease. Even if you apply now you can't claim until after your final drawdown and the mortgage will be settled which i assume would be next year? The scheme currently only runs to the end of the year unless extended in the budget. Also if you apply now and get approval you'll need to reapply next year (if it's still around) as it's based on the tax of the four years previous.

autumnbelle

Daniogroove wrote: »

It's just phrased badly. When they say that they're talking about people buying a new home. Give revenue a ring if you really want to put your mind at ease. Even if you apply now you can't claim until after your final drawdown and the mortgage will be settled which i assume would be next year? The scheme currently only runs to the end of the year unless extended in the budget. Also if you apply now and get approval you'll need to reapply next year (if it's still around) as it's based on the tax of the four years previous.

We can get it after the first drawdown, is it not the value that the auctioneer values the house at that is put in the mortgage contract and then this uploaded to revenue for the value?

Daniogroove

autumnbelle wrote: »

We can get it after the first drawdown, is it not the value that the auctioneer values the house at that is put in the mortgage contract and then this uploaded to revenue for the value?

Be careful if you get it the first drawn down coz if you need more you'll lose out or use less than what you're approved for and you'll owe it back to revenue.

autumnbelle

Daniogroove wrote: »

Be careful if you get it the first drawn down coz if you need more you'll lose out or use less than what you're approved for and you'll owe it back to revenue.

We definitely wont use less then we are approved for as we will be very tight as it is with the amount of mortgage that we will get its just the valuation we got from auctioneers puts us outside the 70% which must be the same with all self builds now?

Daniogroove

autumnbelle wrote: »

We definitely wont use less then we are approved for as we will be very tight as it is with the amount of mortgage that we will get its just the valuation we got from auctioneers puts us outside the 70% which must be the same with all self builds now?

Ya of course, a site alone is worth 30 to 150+, you ring revenue but I'm sure you're okay as you are.

autumnbelle

Rang revenue there, lady on line said completion value. That would rule out 90% of people building Id imagine, I was wondering if we can get an additional loan to bring us to the 70% of has it to only be mortgage- we will need to borrow for the garage anyway

fungie

Hi,

First time buyer and haven't a clue. Thinking of putting a booking deposit down next weekend. It is refundable, we were just wondering when do we have to pay the rest and it becomes binding? The house wont be complete until next summer probably.