How selling works with a Help to Buy equity loan
When you sell a Help to Buy property, the equity loan is repaid from the sale proceeds. You don't need to find the money separately — it comes out of what the buyer pays.
The repayment amount is your equity loan percentage of the higher of either the RICS valuation or the agreed sale price. In practice, for a normal market sale, these are usually close to each other.
The order of repayment: estate agent fees and solicitor costs first, then the equity loan, then your mortgage. Whatever remains is your equity — the money you walk away with.
Worked example: selling a £330,000 property
Say you originally bought at £250,000 with a 20% equity loan (£50,000), have £175,000 remaining on your mortgage, and sell for £330,000:
| Sale price | £330,000 |
| Equity loan percentage | 20% |
| Equity loan repayment (20% of £330k) | £66,000 |
| Remaining mortgage balance | £175,000 |
| Estate agent fees (~1.5%) | £4,950 |
| Solicitor fees | £1,200 |
| You keep | £82,850 |
You keep £82,850 from the sale. The government gets £66,000 (more than the original £50,000 loan because the property went up in value). They share in the upside.
The RICS valuation requirement
Before you can sell, you need a RICS valuation of your property. This is a formal valuation carried out by a Royal Institution of Chartered Surveyors-registered surveyor. It costs around £300-600.
The redemption amount is based on the higher of the RICS valuation or the agreed sale price. This prevents selling below market value to reduce the equity loan repayment.
Important: RICS valuations are valid for 3 months. If your sale takes longer than that, you may need a second valuation. Factor this into your timeline.
The selling timeline
Selling a Help to Buy property takes longer than a normal sale because of the equity loan administration. Budget for additional time:
- Get a RICS valuation — Do this before listing or early in the marketing process. 1-2 weeks.
- Submit to Lenvi — Request a redemption figure based on the valuation. Allow 4-8 weeks for processing.
- Sell the property — Normal marketing and sale process. Time varies.
- Legal completion — Your solicitor coordinates with Lenvi, the buyer's solicitor, and your mortgage lender. The equity loan charge is removed from the title at completion. 2-4 weeks.
Key tip: Start the Lenvi process early. Their processing time is the most common cause of delays in Help to Buy property sales.
Things to watch for
- Tell your estate agent upfront — They need to know about the equity loan to set realistic timelines with buyers.
- Choose a solicitor experienced with HTB sales — Not all solicitors are familiar with the process. An experienced one will coordinate with Lenvi more efficiently.
- Mortgage early repayment charges — If you're on a fixed rate, check whether selling triggers an ERC. It may be worth timing your sale to coincide with the end of your fixed term.
- Ongoing interest during the sale — You continue paying HTB interest right up until completion. If the sale takes 6 months, that's 6 more months of escalating interest.
- Negative equity risk — If your property has fallen in value, the sale proceeds may not cover both the mortgage and equity loan. Get a valuation early to understand your position.
Should you sell or remortgage?
Selling is a valid option, but for most people who want to stay in their home, remortgaging is better. Selling involves moving costs, stamp duty on your next purchase, and the disruption of moving.
Selling makes more sense when:
- You want or need to move anyway
- You can't afford to remortgage for the full equity loan amount
- Your property has significant equity that you want to release
- Your circumstances have changed (family size, job location, etc.)