Building a Loft Conversion with a Persimmon HomeBuy Direct scheme

Aj_2011

Hi,

3.5 years ago we bought a Persimmon new build property on a ftb scheme where we pay 75% of the cost of the house and Persimmon 'pay' the other 25%. We then have to repay the 25% when we sell or within 10 years. (Note: Persimmon's share is 25% of the value of the house at the time of selling).

My question is this: if I get a loft conversion, will Persimmon take 25% of the value it adds to the house? Although details like this will be in the paperwork somewhere, I thought it was worth posting to find out if anyone knows.

For example, the house costs £200,000. We pay Persimmon £150,000 (100% mortgage). In 10 years we sell the house and it is worth £210,000 - Persimmon would therefore take £52,500.

If we had a loft conversion which valued our house at £220,000, would persimmon get £55,000 or would they only take 25% of the value of the house less any improvements we've made?...

Thoughts appreciated.

Thanks.

Senior_Paper_Monitor

Don't do it - I am 99% certain (without looking at the documents) they would have their share.

Cubbington

Depends on the contract but the ones I've looked at have stated they don't take additional value off improvements such as extension, conservatory etc. Best bet is checking your contract as it might have stated something different 3 years ago

Aj_2011

Thanks for the replies - I'll check the contract and see if it mentions it.

Aj_2011

Well, I contacted Persimmon, who said:

if you are selling or re mortgaging with the extension then the increased value would be the figure the repayment is based

So it looks like if I put £10,000 into extending my house, they'll say 'thanks very much' and take £2,500 of it when we sell.