Help to buy - home improvements

SeanMako

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.

This is interesting as I've just got off the phone to Target HCA explaining that I would like to convert my external/detached garage into an office and was told that this would not be allowed because it's a structural change.
I asked if they could check this is correct as I'd already read this comment and thought it would be ok. I was put on hold and told that after speaking to their manager that they agreed and that this would not be allowed which is a bit gutting. 
I've also sent them an email asking just in case I get a different response but I'm not holding up much hope.
If anyone did manage to get permission and went ahead with a garage conversion it would be good to hear how you went about it. 

Robbo81

SeanMako said:

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.

This is interesting as I've just got off the phone to Target HCA explaining that I would like to convert my external/detached garage into an office and was told that this would not be allowed because it's a structural change.
I asked if they could check this is correct as I'd already read this comment and thought it would be ok. I was put on hold and told that after speaking to their manager that they agreed and that this would not be allowed which is a bit gutting. 
I've also sent them an email asking just in case I get a different response but I'm not holding up much hope.
If anyone did manage to get permission and went ahead with a garage conversion it would be good to hear how you went about it. 

Just wondering if you got permission in the end? 

adamrutstein

After reading the above I have a few questions

1. If you proceed without the "authorisation" the only challenge is when you come to sell the property and the value has increased because of your amendment/structural change and if it has increased the value by lets say £10,000 you would pay an additional 20% on top?

2. What if before the 5 year term is up you are able to re-mortgage and buy out the help-to-buy loan therefore releasing you from any restrictions surely then there is no 20% to pay as everyone is happy?

As long as the change is within guidance of laws I cannot see what the challenge could be... any advice on this

ssraylv

Hi, I'm in a similar situation after moving into my 20% Help to Buy property two years ago. I'm in the Help to Buy: Equity Loan (2021-2023) program for a property in London. I spoke with the builder and designer, and they both said the property's value will increase by 7%. This could mean an extra £8400 if the price stays the same, but after doing the math, it looks like it will actually cost us an additional £15000 - £5000 for home improvement and £10000 for the increase in value. Despite this, we're still going for it because it will give us more living space and save money on dining out when we have guests over. Here's the link to what I learned, in case it helps anyone else in a similar situation from Gov.uk:

Guidance

How to make structural alterations to your Help to Buy home

Published

5 May 2021

Last updated

4 February 2022

Making structural alterations without permission

If you do not get permission to make structural alterations, any increase in your home’s market value will be added to your equity loan, so you’ll owe more.

Example

You built an extra room at the back of your home, but did not get permission before doing the work.

You get a certified RICS surveyor to value your home, who says:

• it is worth £300,000 (not including the extra room)
• the extra room has added a further £25,000 to its market value

This increase in the value of your home will be included in the valuation and in the final repayment amount for your equity loan.

You would owe £65,000 (20% of £325,000). This excludes any interest or management fees.

If you’ve already made structural alterations but did not get permission

If you’ve already made structural alterations to your home, but did not know that you needed permission, you can still apply by following

You’ll also need to complete and send us the declaration of work completed form, even if your application is not successful.  

We’ll keep a copy of this form on your customer file.  

We will:  

• assess your application  
• tell you in writing if it's granted

If we decline your application, you’ll have to either return your home to its original condition, at your own cost, or repay the loan. The cost of the structural alteration will be included in the property’s valuation.

We’ll process your application as soon as we receive all your documents and forms, but we may have to refer your case to another team.

gkeic

ssraylv said:

If you’ve already made structural alterations but did not get permission

If you’ve already made structural alterations to your home, but did not know that you needed permission, you can still apply by following

You’ll also need to complete and send us the declaration of work completed form, even if your application is not successful.  

We’ll keep a copy of this form on your customer file.  

We will:  

• assess your application  
• tell you in writing if it's granted

If we decline your application, you’ll have to either return your home to its original condition, at your own cost, or repay the loan. The cost of the structural alteration will be included in the property’s valuation.

We’ll process your application as soon as we receive all your documents and forms, but we may have to refer your case to another team.

Hey did you proceed with this?
do you know how long they allow to repay the loan if they reject the application? Is it in 2 weeks of decision? Or 4 weeks ? Etc?