Help to buy - home improvements

Ben2018

Hi everyone

I currently have a help to buy mortgage which I took out two years ago. We recently found out that we are expecting our first child next year (bit of a surprise!) and it has forced me to evaluate our living situation. Our current house is quite small (no surprise for a new build) and we will need some extra space. Buying somewhere bigger is not feasible for us at the minute so adding a small conservatory/ rear extension looks our best option. However, I know that major improvements are not permitted but my question is : Can they actually do anything about it if I have the work done? I have read that when it comes to settling the help to buy loan, 20% of any value added by improvements that aren’t approved will payable, whereas if the improvement is approved they will ignore the value increase

So long as there are no legal repercussions from carrying out the work I think I would go ahead and do it anyway as even losing 20% of the additional value is still more economical than buying somewhere new. I have tried contacting the help to buy in my area but obviously, no response

Any help and advice here appreciated and thanks for reading

silvercar

I have read that when it comes to settling the help to buy loan, 20% of any value added by improvements that aren’t approved will payable, whereas if the improvement is approved they will ignore the value increase

If what you write is true (I have no knowledge on this) then logically you ask permission first, so that the improvements are not in the 20%. If they don't approve then you could risk carrying on and the improvements would be in the 20%. Not asking doesn't give you the opportunity to save.

middleclassbutpoor

This is what the HTB buyers guide states

Q Can I extend or alter the property?
Not without permission. Because Help to Buy is designed to help people move up
the housing ladder, you should consider repaying part or all of Homes England’s
contribution before making plans for improvements or alterations. This is because
Homes England is seeking to help future aspiring buyers and may use the proceeds
of these repayments to make more assistance available. Therefore, consent will not
usually be granted for significant home improvements. Homes England’s Mortgage
Administrator will act reasonably in considering any application and will review cases
of hardship if, for example, property modifications are required for a disability.
When your property is sold in the future, if improvements have been made with the
approval of Homes England’s Mortgage Administrator, these will be ignored when
your property is valued to work out how much should be repaid to Homes England.

https://www.myfirsthome.org.uk/iwantto/conduct-home-improvements/ also details some examples of what can/cannot be done. I suspect that a conservatory may be declined as it is structural and because it will complicate the value, you would end up paying for it twice if they did allow it as you are committed to paying the % of help you received on the sale price....

kingstreet

Ben2018 wrote: »

Hi everyone

I currently have a help to buy mortgage which I took out two years ago. We recently found out that we are expecting our first child next year (bit of a surprise!) and it has forced me to evaluate our living situation. Our current house is quite small (no surprise for a new build) and we will need some extra space. Buying somewhere bigger is not feasible for us at the minute so adding a small conservatory/ rear extension looks our best option. However, I know that major improvements are not permitted but my question is : Can they actually do anything about it if I have the work done? I have read that when it comes to settling the help to buy loan, 20% of any value added by improvements that aren’t approved will payable, whereas if the improvement is approved they will ignore the value increase

So long as there are no legal repercussions from carrying out the work I think I would go ahead and do it anyway as even losing 20% of the additional value is still more economical than buying somewhere new. I have tried contacting the help to buy in my area but obviously, no response

Any help and advice here appreciated and thanks for reading

How will you finance this?

kingstreet

Ben2018 wrote: »

I have tried contacting the help to buy in my area but obviously, no response

The area HTB Agents have nothing to do with post-sales. You need to contact Target. See mcbp's links to my first home above.

dimbo61

Babies and very young children take up little room with the baby sleeping in a cot next to mum and dad.
Consider your options in 3 years.
Will the property increase in value ? Can your u overpay or build up savings to move to a bigger property or cheaper area

Jess2802

We are in a similar position, although we want to convert the garage to make another bedroom (rather than do an extension).

I just spoke to Target HCA (Help to Buy) and they said that this does not count as a home improvement and is permitted although we are not permitted to take out another loan to fund it.

I wanted to share this information in case it helps anyone else as I couldn't find information about this specific scenario anywhere.

Mattyjp18

We are looking at converting a garage in a help to buy property so this is really useful thank you.

So are we simply able to do it, or do we first need to get written confirmation that garage conversion does not count as home improvement?!

Thanks for any help you can provide
Matt

Soph5623

Did anyone actual do their home improvements. We are looking at also converting our garage and whether it is allowed or not allowed??
Thanks

shawman1189

Hi, I have a large one bedroom flat and would like to know if erecting a partition wall in the living room would constitute as a home improvement? The work would be done with consent from the freeholder and non-structual, only internal.

Thanks

dally86

Jess2802 said:

We are in a similar position, although we want to convert the garage to make another bedroom (rather than do an extension).

I just spoke to Target HCA (Help to Buy) and they said that this does not count as a home improvement and is permitted although we are not permitted to take out another loan to fund it.

I wanted to share this information in case it helps anyone else as I couldn't find information about this specific scenario anywhere.

Hi 

Did you ever do this as we want to simply put a door to our garden into our detached garage which was an opinion at build stage however our house was already built when we decided to buy so it wasn’t an option for us.