Help to buy........ help?

Hope8861

Hello all, I can’t seem to find a direct answer regarding the h2b eligibility to my current situation. So hoping I can get some help or advise....

Currently I own a flat as the sole owner with no one else tied to the mortgage whatsoever.

I am looking to purchase a house with my girlfriend in using help to buy. I understand I cannot use help to buy as I already own a property. (I did not use help to buy to purchase this flat)

I want to keep the flat essentially as an asset, but I also want to buy a ‘family’ home with my girlfriend using help to buy.

Question: if my girlfriend purchased the house solely herself, would she apply for help to buy ? I assume this is yes ? If so, can she apply for this using both hers and my incomes to get the best value from help to buy rather than this being solely based on her income ? As essentially I will live in the house, and also equally contribute to the mortgage ?

2nd question: is there any other way, I can keep my flat whilst also purchasing a house with my girlfriend using help to buy ?

Appreciate the support.

kingstreet

Hope8861 wrote: »

Question: if my girlfriend purchased the house solely herself, would she apply for help to buy?

Yes. But expect some push-back from the HTB agent when you declare to them you will reside in the property. HTB is for those who own no other property - owners and occupants of the HTB property.

If so, can she apply for this using both hers and my incomes to get the best value from help to buy rather than this being solely based on her income?

No. The HTB Agent will normally allow a small portion of your income to be taken into consideration in the affordability calculation but I suspect this won't be permitted as you are a homeowner.

Your income will definitely not be accepted for mortgage affordability.

2nd question: is there any other way, I can keep my flat whilst also purchasing a house with my girlfriend using help to buy?

No. There isn't.

HTB is not designed for would-be property portfolio holders.

middleclassbutpoor

My advice would be to sell the flat

Use money to put deposit in family home.

Get your solicitor to draw up an agreement that protects your deposit should you split. I would have that you £ amount is protected but look to see if you could express this as a % also using a 'whichever is the higher' condition.

You can then probably avoid the HTB scheme and your equity could benefit in the family home still and you could legitimately be included on the mortgage/deeds etc.