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homebuy direct

We are planning to purchase a property on homebuy scheme on wife's name. wife is first time buyer and our current property is on my name. we are interested in this scheme because they have reduced the property by 10k and we get 30% loan from builder and goverment. my friend bought same property on full price 2 months ago.

My question is

1) can we purchase this property and rent out?

is it legal?

just asking for some advise, I have only thought about it and haven't sign any contract. spoken to sales assistant and she says builders doesn't have any problems.
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Comments

  • tb1105
    tb1105 Posts: 124 Forumite
    I thin you both have to be FTB. We are doing scheme at the mo.
    No you can't rent it out, it is a scheme to help FTB get on the market.
  • superfran_uk
    superfran_uk Posts: 1,121 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    No, you can't. If it's a FTB scheme they're usually quite strict.
  • sgh1976
    sgh1976 Posts: 424 Forumite
    Part of the Furniture Combo Breaker
    The point of the HBD scheme is to help FTB's get their own property. A starter house if you will. It is not designed to help couples add a house to their portfolio or to become landlords.

    At no point will the bank allow it to become a letting property.
  • aamadami
    aamadami Posts: 56 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    thank you for your replies.
  • We have just been accepted on the Homebuy Direct, my partner is not a FTB, but i am.

    He had to sell his house a couple of years ago as he couldnt afford it.

    Danielle

    February GC £26.68/£250

  • We don't want to misuse the goverment funding. if we don't go for the scheme now, i don't think we can get another oppurtunity in future. it is good oppurtunity to have property on both of our name. only proble is that we are not planning to live there in short period so we don't have any other option other then giving on rent.

    I am going to call developer/homebuy direct to see if they can give some advise.
  • sgh1976
    sgh1976 Posts: 424 Forumite
    Part of the Furniture Combo Breaker
    aamadami wrote: »
    We don't want to misuse the goverment funding. if we don't go for the scheme now, i don't think we can get another oppurtunity in future. it is good oppurtunity to have property on both of our name. only proble is that we are not planning to live there.


    Then you won't get it...The Developer won't give a flying fig, they will just want the sale, but the HBD agents will and will refuse anything other than "we are using this as our home and we have no other property". If they agree, then it makes a mockery of the whole scheme.
  • how do you find out your 'accepted'?
    We have just been accepted on the Homebuy Direct, my partner is not a FTB, but i am.

    He had to sell his house a couple of years ago as he couldnt afford it.

    Danielle
    SAVING FOR OUR FIRST HOUSE DEPOSIT

    15,000 NEEDED /35,000 SAVED SO FAR! :j
  • sugarpants wrote: »
    how do you find out your 'accepted'?

    We applied online, and they wrote to us within 8 days to say we were accepted. Very Straightforward.

    No just a problem finding a property that we like :-)

    My problem is now, that according to a newspaper, when the new election comes around, they will be cutting down on schemes like this!

    Danielle

    February GC £26.68/£250

  • brit1234
    brit1234 Posts: 5,385 Forumite
    We applied online, and they wrote to us within 8 days to say we were accepted. Very Straightforward.

    No just a problem finding a property that we like :-)

    My problem is now, that according to a newspaper, when the new election comes around, they will be cutting down on schemes like this!

    Danielle

    Good they are bad schemes designed at ramping up property prices. As for using a ftb scheme for buy to let, thats deeply wrong. Remember it was the wave of buy to let buying ftb homes that was partially responsible for this housing bubble in the first place.

    I wouldnt recomend this scheme anyway with prices starting to drop again now the stimulas has gone and rates are going up.
    :exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
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