Frequently Asked Questions
What happens if property values fall? Will an owner have to repay the full amount of Government assistance or just a percentage of the total sale proceeds?
When a home owner sells, you are committed to repay a percentage of the market value equal to the percentage contribution of assistance received.
If the market value of the property falls below the level at which the home was first purchased, the Homes & Communities Agency will bear the loss on their share of the property. In these circumstances you will repay the HCA less than the amount which they contributed to the original purchase.
You will always need to show that the proposed sale value is at the prevailing market value before going ahead.
We will approve the sale before allowing the Second Charge to be released.
If a home owner does not comply with the terms of the Second Charge deeds, the HCA will seek to recover all the money it is owed.
Your solicitor will explain the Second Charge deeds before the home is purchased.
An example of what happens if prices fall can be found in the Armed Forces Home Ownership Scheme Buyers' Guide
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