HTB looking to rent

yakimov85

Hi,
A couple of years ago my oh and I bought a new build via HTB Equity Loan (20%). 2 years on and we’re exploring opportunity to relocate abroad temporarily (2-3 years) due to work opportunities and need to decide what to do with our house. We don’t want to sell and rental/Air BnB seem to be the only option as the new job won’t provide sufficient funds to repay current mortgage and rental abroad. I’ve called the bank and despite having the HTB mortgage, they’ve provisionally agreed to allow me to rent the property and assured me that it won’t impact the HTB. But I’m 95% sure that I first have to pay off the Equity Loan before I’m allowed to do so according to the terms in HTB. Anyone else had an experience in this or is able to provide some advice, it would be greatly appreciated.
Thanks!

Lurkingtoposting17

Yes, you cannot rent your home if you have a help to buy equity loan. You would need to look to pay off the loan or remortgage for the full cost of the house repaying the loan.

HTown

Congratulations on the potential move and take it from someone who is currently renting her HTB house out - it is possible but it is a bit of an admin heavy pain.

Start by finding your local help to buy agent on the help to buy government website. When you call them you’ll need to give a compelling reason for the move such as, I’m being transferred for work or my husband is being transferred. They’ll generally give permission if it’s seen as a temporary move which is out of your control. Let them know your mortgage provider has given provisional agreement (your mortgage provider will probably want proof of HTB permission).

In my case I had to write HTB to ask permission and stated my case, I also had to provide supplementary evidence in the form of a letter from my employer detailing their need for me to relocate. Once I sent this, they then replied with a letter granting permission. I then sent this to mortgage provider who confirmed they were giving me permission to let.

Important thing to note was HTB only granted this for 12 months. If I’m lucky I’ll get a 12 month extension but they explained consent to let was generally only for a 12 month period and a “temporary” relocation.

My consent to let will take me to the end of my fixed mortgage term so at that point I’ll remortgage and pay off my HTB.

PM me if you have any questions.

yakimov85

Perfect, exactly what I needed to hear will PM for more details.

Thanks!

Cakeguts

Don't assume that you just because you like living in your house that any tenant will. You have to be prepared to deal with non payment of rent and damage from abroad. Most people make the mistake in thinking that a house that they bought to live in will make a good rental. Sometimes they do but if they don't you are going to have a lot of hassle. It is something to consider.

kingstreet

HTown wrote: »

Start by finding your local help to buy agent on the help to buy government website

The area agents only deal with pre-sales.

Only Target can deal with post-sales issues;-

https://www.myfirsthome.org.uk/

Comms69

Are you aware of your responsibilities as a LL?

You realise you can’t just move back in when you decide to return?

yakimov85

Thanks all, as with any big decision there are many aspects to consider and I’m simply trying overcome the first hurdle which for me is a complete blocker. Hence the subject of the post. There are a ton of other things to consider, but I’ll take it one step at a time to make sure everything’s taken before we leave and whilst we’re out of the country. Luckily I’ve some friends who’ve done the same and have offered some advice on renting whilst living abroad but I also have this fanatastic forum to get advice from as well as solicitors and possibly letting agencies.

Overall, regardless of how difficult it may be, there’s not going to be another opportunity knocking on my door to live abroad for a few years so my family and I would like to take full advantage of it whilst the timing is right. When we decide to come back, luckily, we’ll have the support of our wider family if needed whilst we sort our old house out.