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Help to Buy scheme (can we ever rent it out?)
DermotMadden
Posts: 1 Newbie
Hi all,
My girlfriend and I are thinking of getting a new build apartment using the government Help to Buy scheme. Repayments would all be fine, but one thing we want to consider is that after a few years our jobs change and we need to move. Is our only option to sell the apartment, or could we rent it out?
The official webpage info states:
"Help to Buy will only be available on properties which are occupied by the individual or individuals taking out the mortgage."
Which implies that you can only receive the help if you plan on living there. But is not definitive on if that means you can never rent it out until the Help to Buy loan is repaid, or if after 5-10 years you can start to rent it if circumstances require it. I've tried finding more detailed terms and conditions but haven't being able to find them on the internet so far.
If a job change happened at the same time as a big drop in the market, selling can be a bad option, so renting it out could be a nicer option. But want to know if that option will be available.
My girlfriend and I are thinking of getting a new build apartment using the government Help to Buy scheme. Repayments would all be fine, but one thing we want to consider is that after a few years our jobs change and we need to move. Is our only option to sell the apartment, or could we rent it out?
The official webpage info states:
"Help to Buy will only be available on properties which are occupied by the individual or individuals taking out the mortgage."
Which implies that you can only receive the help if you plan on living there. But is not definitive on if that means you can never rent it out until the Help to Buy loan is repaid, or if after 5-10 years you can start to rent it if circumstances require it. I've tried finding more detailed terms and conditions but haven't being able to find them on the internet so far.
If a job change happened at the same time as a big drop in the market, selling can be a bad option, so renting it out could be a nicer option. But want to know if that option will be available.
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Comments
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Consent to let will never be granted under HTB.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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as kingstreet says.....0
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If you think your jobs will change and you will move in a few years then I don't think that buying property would make that much sense anyway at the moment.
If you have to sell in only a few years then after the fees of buying and selling are taken into account there is a real risk of making a loss.
If you have to become an accidental landlord, that probably won't be as smooth as you think it will be - even assuming you aren't barred from letting it out by HTB.
On the other hand, some people think that the HTB scheme is going to make prices soar so maybe buying right now even to resell in 3-5 years is a really good idea. I have no idea, I just want somewhere to live!0 -
Saying as Help to Buy is available on all properties, not just new-build flat and such with strict leases, I don't think anyone would find out nor care if your decide to rent it out.
Most people I know who rent out their first property (rather than sell it) don't have 'permission' either - much more profitable on those 1-2% base rate trackers!Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Turnbull2000 wrote: »Saying as Help to Buy is available on all properties, not just new-build flat and such with strict leases, I don't think anyone would find out nor care if your decide to rent it out.
Most people I know who rent out their first property (rather than sell it) don't have 'permission' either - much more profitable on those 1-2% base rate trackers!
Yes, and then the lender finds out and you're in breach of the mortgage agreement. Smart....0 -
welshwizard1927 wrote: »Yes, and then the lender finds out and you're in breach of the mortgage agreement. Smart....
And how often do they find out? Rarely. And if they do? You just go onto the deal you originally avoided.
There'll be lots and lots of people using Help to Buy to obtain or retain second properties. The banks won't be fussed, as this scheme should ensure house prices experience a strong rise in 2014 - thus boosting their balance sheets.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Excellent.....the sharks are already a step ahead....Never, under any circumstances, take a sleeping pill and a laxative on the same night.0
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My bolding. Really? You perhaps misunderstand how the scheme will operate.Turnbull2000 wrote: »And how often do they find out? Rarely. And if they do? You just go onto the deal you originally avoided.
There'll be lots and lots of people using Help to Buy to obtain or retain second properties. The banks won't be fussed, as this scheme should ensure house prices experience a strong rise in 2014 - thus boosting their balance sheets.
See:"The property purchased must be your only residence. Help to Buy is not available to assist buy-to-let investors or those who will own any property other than their Help to Buy property after completing their purchase.National Hunter will no doubt help flag up potential fraudsters during the applications process. There will be plenty of taxpayers who will be only to happy to "dob in" those who may be tempted to try to circumvent the rules some time after their HTB purchase. Many Ts also now routinely check whether a potential LL has appropriate consent to let.
You cannot rent out your existing home and buy a second home through Help to Buy.
Applicants who make fraudulent claims for Help to Buy assistance will be liable to criminal prosecution.
Fraudulent claims will always require immediate repayment of the Help to Buy equity loan assistance."
Source0 -
And in case the above isn't clear enough I would suggest you read the Q&A on page 18 of the Home & Communities Agency: Help to Buy Buyers Guide
And for those that can't be bothered:
Can I buy any house I want? No!
Can I sublet? No!
Can I own other homes as well as my Help to Buy home? No.0
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