Help to buy and renting it out?

sunil237

I am in a position to buy a house under this scheme, I cannot afford a house without it. I do not plan on moving for 2-3 years but don't want to wait for prices to continue to rise.

I know it is against the scheme to rent the house (under normal circumstances), but how do they check up? has anyone rented and been caught? what would happen?

chanz4

well it would be against your mortgage, also anything was to happen then could force a sale

Pixie5740

I can't believe you've come on to this forum to ask for advice on how to avoid criminal prosecution for fraud because that is exactly what you are asking for help with.

If committing fraud, not only with one of the HTB schemes but also committing mortgage fraud (applying for a residential mortgage when you have no intention of living there and instead want to let the property out from the get-go) is the only way you can get on the property ladder then you cannot afford to buy a property.

There are numerous ways that a lender could catch you out buy I'm not going to divulge any of them to you as I do not want to be party to your fraudulent activity.

I would like to offer an alternative solution though. What about buying a property and getting a lodger in to help cover the cost of living as that would not involve committing fraud?

adindas

It is even worse than benefit cheater due to the amount of money involved.

If there is a way of doing this every people who already own a house could use this scheme to cheat to get the second house and reting it out.. Hopefully all these fraudstes will get caught and the punishment become more severe. The current punishement are too light to deter people to commit fraud.

Pixie5740 wrote: »

I can't believe you've come on to this forum to ask for advice on how to avoid criminal prosecution for fraud because that is exactly what you are asking for help with.

If committing fraud, not on with one of the HTB schemes but also committing mortgage fraud (applying for a residential mortgage when you have no intention of living there and instead want to let the property out from the get-go) is the only way you can get on the property ladder then you cannot afford to buy a property.

There are numerous ways that a lender could catch you out buy I'm not going to divulge any of them to you as I do not want to be party to your fraudulent activity.

I would like to offer an alternative solution though. What about buying a property and getting a lodger in to help cover the cost of living as that would not involve committing fraud.

silvercar

sunil237 wrote: »

I am in a position to buy a house under this scheme, I cannot afford a house without it. I do not plan on moving for 2-3 years but don't want to wait for prices to continue to rise.

I know it is against the scheme to rent the house (under normal circumstances), but how do they check up? has anyone rented and been caught? what would happen?

Double the risk of being caught out. Committing mortgage fraud if you apply with the intention of letting straight away.

Also applying for RTB when you intend to let would again be fraud.

Easiest way you would be caught is if your tenant applied for housing benefit or council tax benefit or single person council tax discount, let alone registering to vote with the council that gave you your RTB discount.

Yorkie1

silvercar wrote: »

Double the risk of being caught out. Committing mortgage fraud if you apply with the intention of letting straight away.

Also applying for RTB when you intend to let would again be fraud.

Easiest way you would be caught is if your tenant applied for housing benefit or council tax benefit or single person council tax discount, let alone registering to vote with the council that gave you your RTB discount.

Without disagreeing with the general thrust of your post, am just highlighting that OP is talking about HTB and not RTB.

stator

And in fact letting out a RTB is entirely legal

sunil237

Pixie5740 wrote: »

I would like to offer an alternative solution though. What about buying a property and getting a lodger in to help cover the cost of living as that would not involve committing fraud?

I will have a look into this method, I am able to consider moving in myself, renting out 2 rooms, and waiting for a few years till the misses moves in. This could be ideal, thanks.

@everyone
I understand the heat I am getting for this, but consider the following;
I am a first time buyer.
I want to move within 30 minutes of my family.
I have looked for 130k houses (the cheapest), all in racist areas.
Without this scheme I can get mortgage approval, and repay a whooping 1k a month for 30 years!
That means I cannot afford a house without this scheme which will drop it to 750-800 a month.
H2B will (may) cease to exist next year.
Prices are likely to rise 10-15% over the next 2-3 years. not only increasing the deposit needed but the repayments (which is the main cause of foreclosures).
I am seeking a method for which I can secure my future family financially. I am not doing anything yet, but I want to at the very least explore my options.

Pixie5740

sunil237 wrote: »

@everyone
I understand the heat I am getting for this, but consider the following;
I am a first time buyer.
I want to move within 30 minutes of my family.
I have looked for 130k houses (the cheapest), all in racist areas.
Without this scheme I can get mortgage approval, and repay a whooping 1k a month for 30 years!
That means I cannot afford a house without this scheme which will drop it to 750-800 a month.
H2B will (may) cease to exist next year.
Prices are likely to rise 10-15% over the next 2-3 years. not only increasing the deposit needed but the repayments (which is the main cause of foreclosures).
I am seeking a method for which I can secure my future family financially. I am not doing anything yet, but I want to at the very least explore my options.

None of the above is a justification for committing fraud and sure as hell won't stand up in court.

You're really no different from any other first time buyer in the UK.

sunil237

Pixie5740 wrote: »

None of the above is a justification for committing fraud and sure as hell won't stand up in court.

You're really no different from any other first time buyer in the UK.

I'm not saying it will, I am just saying that is why I am exploring this option.

ultrafox

Prices are likely to rise 10-15% over the next 2-3 years. not only increasing the deposit needed but the repayments (which is the main cause of foreclosures).

What are you basing that on? I'm not saying they won't increase (Although I personally believe that they won't) but that is a large amount over the next few years.