Help to buy

Ninja2106

Looking for some advice. My friend purchased a house 3 years ago on the "help to buy" scheme and is currently in negative equity. To help with their financial situation they would like to move in with their partner, but to sell the house would loose money for them and the scheme (as the government and house builder will also have to share the loss if they sold the house). Is there any way they can apply to rent out the house, or maybe an alternative option? I know that negative equity and a change of circumstances is an issue for others on this scheme, and I can't understand why there isn't a way to resolve this. The only choice seems to be to leave the house vacant, and save what money they can by living together. Are there any other options?

marliepanda

Or they could sell the partners house and move in together and overpay to get in positive equity? Just another potential option.

I don't know 100% about renting help to buy properties but these schemes were to help people get on the ladder, not into the rental business, so I wouldn't be shocked if there was such a 'ban' on renting them.

pathtofreedom

I don't know about the help to buy part, but when I was in negative equity for years, I couldn't get consent to let, so just had to over pay my way out of it till I could remortgage, as I didn't want to just move and get a massive loan to pay the difference.

Pixie5740

From the HTB website:

"Can I rent out my property?
No, Help to Buy is designed to assist you to move on to, or up, the property ladder.

You must live in the home that you purchase or rent through Shared Ownership, Rent to Buy or Intermediate Rent schemes. You cannot use the scheme for a Buy-to-Let investment.

Subletting of Shared Ownership homes is not permitted unless you have purchased all of the remaining shares and you own the property outright.

If you have purchased a home using the Help to Buy Equity Loan scheme, you would have to repay the equity loan before you would be allowed to sublet.

In exceptional circumstances, i.e. if you are a serving member of the Armed Forces away on a tour of duty, subletting may be considered with written permission from your Housing Association or Registered Provider.If you purchased your home using the Help to Buy Equity Loan scheme, you would also need approval from your mortgage lender."

So unless your friend is a member of the armed forces then no she will not be given consent to let. Letting out the property won't solve the negative equity issue anyway. Overpaying the mortgage will. What was her plan to repay the equity loan?