Question on buying a parking space on help to buy

maxthepolarbear

I took out a help to buy equity loan two years ago at a new development. Now I'm offered an option to buy a parking space (I was not offered this option at the time of purchase as they had not built the car park then). My questions are:

1 Will Help to Buy allow me to buy a parking space, say I'll be paying with my own money (or finance via a short term loan) i.e. not remortgaging to get a bigger mortgage? My concern is that when help to buy sees that I have spare cash they would rather I pay off the equity loan than using it to buy a parking space.

2 Does the type of the contract of the parking space has a bearing on question 1? For example, I might be permissible to buy a parking space if it is on a separate contract but not when it is linked to the flat (or vice versa)?

Thank you for your help.

MrJB

They won't care what you use your spare cash for - they stand to benefit when you eventually pay back your equity loan as hopefully house prices will move up and thus they receive their proportionate share of the growth.

dgtazzman

I'd be careful to link the purchase of the parking space to the house. If they are linked, when you come to sell, the fact you have a parking space will probably increase the sale price, thus also the amount you will have to pay back for the equity loan, while you would be paying for the parking space out of your own pocket, without contribution from HTB, thus paying for the same thing twice...