Buying out an equity loan

Broke1983

Hi,

I am a teacher and 10 years ago I managed to get onto the property ladder and buy a one-bed house using a combination of some inherited money (10%), a mortgage (50%) and a government-backed key worker equity loan (40%).

Through years and years of scrimping and saving, I managed to regularly overpay and pay off the mortgage a year ago leaving me with the equity loan of 40%. Under the conditions of the loan, I pay a reasonable rate of interest (2.4% per year) and when I sell the property I have to give 40% back to the now privately owned company. OR I can buy out the loan at 40% of the current market value of the property. I am planning to buy out the equity loan next year and take a new smaller mortgage and overpay. Over the years I have made many improvements to the house and increased it's value and the company will make a very large profit from my hard work and the money I've spent on the house!

Anyway, to cut a long story short and get to the point: How far can I temporarily lower the market value of my house without defrauding the company? What easily fixable things would lower the value of the property?

I want to replace the kitchen once I buy out the equity loan. Could I just remove the kitchen before the market valuation to make the house inhabitable?

Thanks for any suggestions!