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Redeeming your Help to Buy Loan

A helpful step-by-step guide by Kevin Danez, Conveyancing Executive at TMT Legal Services LLP

The Help to Buy Loan Scheme provided fantastic assistance in helping first-time buyer’s get onto the housing ladder. However, most people with the Loans do not realise the additional processes in place in redeeming them. This may be whilst you are still living in the property, through savings or a remortgage, or at the point of selling the property.

How Can I Redeem My Help to Buy Loan?

There are three main ways in which you can redeem your loan as follows:

  • Remortgaging

  • Personal savings, further loan/mortgage or a gift from family

  • Selling your property (you must redeem the loan in full)

What Steps Must I Take to Redeem My Help to Buy Loan?

1. Visit the Help to Buy website:

If you are looking to redeem your loan, the first step is to search for Help to Buy Equity Loan and reading the information on the GOV.UK website.

On the website, you will find some helpful links to RICS Surveyors, and a guide to the process. Help to Buy have appointed a company called ‘Lenvi’ to assist with redeeming the loan.

2. Obtain a valuation:

Lenvi will require evidence of the property’s value. You will remember that the Loan is based on the value of the property, not the final sale price. To assess the true value of the property, you will have to obtain a RICS valuation. The criteria for this can be found directly on the Lenvi website and you can also use the following website to look for a particular company:

The final repayment amount for your loan will be based on the higher of either the valuation or the sale price.

A valuation report will be prepared which is valid for 3 months. Once received, you will need to provide this to Lenvi. If three months elapses before the Loan is repaid, you may need to carry out another valuation on your property.

3. Appoint an experienced Legal Advisor:

Not all firms have experience with Lenvi, and the procedures in place for redeeming their Loans. However, TMT Legal Services have a wealth of knowledge in this area and will be more than happy to assist. You will need to have a legal representative in place in order to repay the Loan.

4. Complete the Loan Redemption form:

To initiate the redemption process you need to complete the Repayment Application Form. This can be found at the gov website mentioned above. You must complete and return this form to Lenvi.

At this stage, you will have to pay an administration fee to Lenvi, plus any arrears which may be on the account. The form asks for details of TMT, and questions which you can answer in relation to your RICS valuation report.

5. Review the pack and redemption letter:

Once Lenvi have received your completed form, fee and valuation they will produce a Redemption Pack. This is sent both to you and TMT Legal Services. The pack contains a letter with details of your repayment figure along with a guidance pack with the forms TMT need to complete on your behalf.

6. Prepare to complete:

Once the Redemption Pack has been received and any further details such as mortgage offers or savings details etc. have been dealt with, you will be in a position to complete. Lenvi require a minimum of 15 workings days’ notice for completion to take place. Please do bear this in mind when considering completion dates. This is especially important if you are selling the property, as the Loan will have to be repaid on the day that the sale completes.

If completion does not take place by the specified date, or if there is a delay or change to the completion date after your Legal Advisor has submitted their paperwork to Lenvi, the new date will have to be confirmed to Lenvi, and the 15 working day turnaround is reset.

It is also important to note that the valuation must be in date on the day of completion, otherwise you will need to obtain an extension from your surveyor.

On receipt of the paperwork TMT completes confirming the intended completion date, Lenvi have five days to issue an Authority to Complete. This is their confirmation that they are happy for completion to take place on the specified date and will know to expect the funds required to pay back your loan.

7. Completion

On the day of completion, TMT will send through the funds to Lenvi to redeem your loan. This will be verified by Lenvi to confirm it matches what was included within their Authority to Complete. Once this has taken place the charge to Homes and Communities Agency will be removed from your property register. If you have partially paid off your loan you will receive a memorandum of stair-casing confirming the remaining equity mortgage percentage outstanding.

Will this process delay my sale?

No. When done correctly, your conveyancer can balance this process alongside your property sale, meaning that, if adequate time is given for Lenvi to complete their checks and reviews, you should not experience any delays. It is important that you apply to Lenvi as early as possible and request your survey so that TMT receive the Redemption pack promptly.

TMT Legal Services have an experienced team of Conveyancers who specialise in Help to Buy Loan Redemption. To find out more and to see how TMT can help you, contact us on 0333 188 4758. Visit our website: or email:


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