Help-to-buy (Welsh government) rental problem

jibbyboo

My boyfriend moved into his house purchased using the Welsh government Help-to-Buy scheme around a week before we began dating.

A year later, and with eight months of effectively living together but alternate weeks staying in my (owned) home and his, we have come to the conclusion that we needn't be paying mortgages and utility bills etc for two properties, when we could save a significant amount by living in one house.

We have chosen to live in my house due to lower costs and time/ money invested in the property, however given that he has only had his house for just one year we both feel it would be a terrible shame to simply sell the property (neither of us want to sell, as we worked extremely hard to be homeowners independently). Obviously being a homeowner also significantly improves his credit score.
His house is also in a more favourable area for rental, and therefore could achieve a higher rental yield than mine.

So the crux of our problem, is this: at the outset, it appears the Welsh government prohibits individuals from renting their homes on the Help-to-Buy scheme. We can confidently assume that this is because they wish to use their scheme to help first-time-buyers onto the property ladder. For my boyfriend, around two years after initially signing up for the property at POS, his circumstances have clearly changed considerably.

What we're wondering is whether anybody has been in a similar situation; where due to personal circumstances they have been granted flexibility on renting their property despite Help-to-Buy? And if we do contact the relevant bodies, whether there are particular things that would help our cause in an appeal?

Big thanks for your help!

marksoton

Depends on his contract but i can't see you having much joy.

HTB is designed to get people on the property ladder not provide them with an investment opportunity after one year.

Getting a new girlfriend is hardly a considerable circumstance change.

jibbyboo

Living between two properties is the considerable circumstances change @marksoton. Thanks for the input.

marksoton

jibbyboo wrote: »

Living between two properties is the considerable circumstances change @marksoton. Thanks for the input.

Fair enough. But i think their argument would be that's fine but in that case sell the property and let someone else have the opportunity of a HTB property.

Again, he needs to check his paperwork.

jibbyboo

His paperwork states that according to the base rules he is able to rent 'a room' in the property. So (unless there is another alternative that we are unaware of) we would be looking at submitting an appeal due to unforeseen circumstances.

marksoton

Well best of luck but i can't see that washing. Mainly because if the loopholes were so easy people would have tried this countless times.

That aside he needs to consider if he really wants to be a LL with all the responsibility etc that entails.

jibbyboo

Thanks @marksoton. Yes I agree, so many people would falsely make similar appeals in an attempt to sneakily let a property having had no intention of living there. That's one of the reasons I'm so concerned as our situation is genuine.

As an aside, fortuitously I actually work in property lettings, so we wouldn't have any issues with LLing.

Tigsteroonie

jibbyboo wrote: »

As an aside, fortuitously I actually work in property lettings, so we wouldn't have any issues with LLing.

In which case I have to ask, have you ever come across a HTB property being let out?

jibbyboo

@tigsteroonie ah no, although I work in lettings, we deal with HMOs and due to article 4 legislation in our primary rental areas, the majority of these are old Victorian houses. Haven't ever come across this scenario.

Lioness_Twinkletoes

Generally, under help to buy subletting is not permitted at all. A quick Google shows the following information:

Can I sublet my Help to Buy home?

No. Help to Buy is designed to assist you to move on to or up the housing ladder. If you wish to sublet, you will first have to repay the Help to Buy: Equity Loan assistance. In exceptional circumstances sub-letting may be considered. For example, if you’re a serving member of the Armed Forces staff whose tour of duty requires you to serve away from the area in which you live for a fixed period. In these circumstances you would also require approval from your mortgage lender.
- See more at: https://www.helptobuy.gov.uk/equity-loan/faq/#sthash.IO9OhBzH.dpuf

To be honest, I don't think the 'problem' of having a girlfriend who also has a home is going to meet the criteria of 'exceptional circumstances'.

You need to re-think your plans.

Pixie5740

Not only would he need to get consent to let from the HTB scheme, which he won't get, but he'd also have to apply for consent to let from his mortgage lender which again he won't get. Sometimes exceptions are made for those in the armed forces but not because someone has decided to shack up with a boyfriend/girlfriend.

Your options are:

Sell his property and live in yours.

Let your property and move in with him.

Keep both properties and don't move in with each other.