Help to buy Scotland + Ltd company

fuzzynavel

OK stick with it I hope someone can help.

We have found a nice new build that we would like to buy using the Help to buy equity scheme in Scotland....the problem is that you have to be free of any other property before you can apply which means selling up and renting for a while as we wait for our house to be built (around Q2 2015)
We currently have a 3 bed semi worth 80k and from 2 valuations we could demand in excess of £750pcm in rent making a yield of around 9%.
I would like to sell this property to my limited company and rent it to myself while I wait for the other house to be built. I would then use the limited company to manage the property long term.

Now....my question is...Would this arrangement jeopardise my Help to buy application?
The limited company (according to my accountant when I try and remove funds) is a completely separate legal entity and is only connected to me through my shareholding.
I would like to keep a hold of my current property if possible for future security but if it would jeopardise us getting the "forever home" then I will just have to get rid and pay extortionate rent to someone else for a year.

Hopefully this is clear....any questions then please ask away. This is Scotland btw so slightly different from the English scheme.

thanks for any help.

ethank

Why are you trying to make money out of a scheme that is there to help you. I don't think it is morally right. At best you might get through this, at worst the Government will cotton on to this. Either way, it will take you weeks if not months to get the paperwork through the transfer process with the Land Registry and if you have any form of mortgage on the existing property - you have not got a chance of getting this through a lender!

Lots of us want to move properties, and accepted the Government help to buy the way it was intended. The Help to Buy scheme was intended for people who want to buy a new home and have little deposit.

There is no Help to Buy to Let scheme.

tkane

I'm sorry but I hope your plan fails. I don't want to see my tax money being spent on people trying to build a property portfolio.

Thrugelmir

How is your limited company going to raise the finance to purchase the property?

amnblog

This sounds like an arrangement that is definitely outside the 'spirit' of the scheme but probably does not contravene the rules.

In the same way developers are encouraging families who need a 3 bed property to scale up to an unnecessary 4 bed using the scheme.

Not in the spirit of the scheme but everyone seems to be concerned with WIIFM.

amnblog

BTW a fraudulent claim under the scheme does make you liable to criminal prosecution - so good luck.

fuzzynavel

Lots of hate here but I totally understand your position.

We have been planning renting out this property for years and it is just hard to let go...

I should take the scheme in the spirit that it is intended to be used....we will be buying a much better house than we could afford ourselves.

thanks for the abuse to help me see clearly.:beer:

leveller2911

fuzzynavel wrote: »

Lots of hate here but I totally understand your position.

We have been planning renting out this property for years and it is just hard to let go...

I should take the scheme in the spirit that it is intended to be used....we will be buying a much better house than we could afford ourselves.

thanks for the abuse to help me see clearly.

I don't think anyone was abusive,spiteful or hateful .

The HTB schemes are an emotice subject .They are there to help people get on the housing ladder who have a small deposit and be honest your looking to use the scheme to expand your property portfolio.

fuzzynavel

leveller2911 wrote: »

I don't think anyone was abusive,spiteful or hateful .

The HTB schemes are an emotice subject .They are there to help people get on the housing ladder who have a small deposit and be honest your looking to use the scheme to expand your property portfolio.

I am also looking for ways to sell our house and spend as little as possible on rental so that we can continue saving our deposit....
I will admit that I am wanting to have my cake and eat it a bit...so a little selfish