Help To Buy Equity Loan - what to do with flat?

JennyLM

Hi all,

In absolute desperation and hope you can help. I bought an apartment conversion property with a Help To Buy equity loan five years ago. I swapped jobs about 18 months ago and now have a horrible commute (3 hours a day). I put the property on the market just under a year ago, with the aim of selling it, redeeming the Help To Buy loan and relocating closer to work. Got an offer in November, found myself a property, undertook all the necessary conveyancing and was about two days away from exchange,

Unfortunately, my buyer has pulled out at the last minute, and as it took so long to get an offer I have had to pull out of my purchase. With Brexit etc I simply don't think it's likely to sell quickly.

I rang Nationwide this morning to discuss remortgaging to get rid of the HtB loan, with the aim of letting out my flat and renting somewhere myself, but although this is within my financial means (lower than the mortgage I'd been approved for on my purchase) they said that they will not offer additional finance on the property if I then intend to let it. I'm livid as when the sale fell through last week I rang Nationwide and this is what somebody advised me to do.

My last option is to appeal to Target to give me consent to let without paying off the HtB loan, and I'm currently pursuing this. I don't know what the odds of success are - has anybody had success getting consent to let with the Equity Loan still in place?

If not can anybody advise other options which mean I can move as soon as possible? I just can't afford to maintain this place vacant and rent somewhere else. My job and social network are all miles from where I live, and having done this commute for 18 months doing it indefinitely will drive me absolutely insane.

I'm already about five grand down from the failed sale and am just looking for options that allow me to at last move out and move on with my life.

Slithery

You should be able to complete in around 6 weeks by putting it in an auction or less if you sell to a cash buyer. Of course how much you are willing to pay for a quick sale is up to you...

kingstreet

JennyLM wrote: »

I rang Nationwide this morning to discuss remortgaging to get rid of the HtB loan, with the aim of letting out my flat and renting somewhere myself, but although this is within my financial means (lower than the mortgage I'd been approved for on my purchase) they said that they will not offer additional finance on the property if I then intend to let it. I'm livid as when the sale fell through last week I rang Nationwide and this is what somebody advised me to do.

You are already with Nationwide, so you're asking for a further advance not a remortgage. Nationwide don't offer BTL products so all they could offer is consent to let and as you state, they won't do a further advance if you will request CTL at the same time or soon after.

You do actually need a remortgage. This is taking a new mortgage with a new lender to repay Nationwide and the HTB Equity Loan. You will need a lender which offers BTL products. Nationwide has an off-balance sheet subsidiary called The Mortgage Works. Most BTL lenders like TMW are 'broker-centred' and you would probably have this resolved in a discussion with an independent mortgage broker.

Dealing with Target and trying to obtain CTL when it is specifically prohibited under most circumstances would not be my idea of fun.

Cakeguts

Put the flat back on the market at a price it will sell at. The reason why it took a year last time is because you were asking too much for it. New properties have a premium on them so you can't expect to get back what you paid for it if you put it on the market soon after buying it.



Do your own research. Find out what non new flats sell for in the local area. Sold prices that is not asking prices on Rightmove and then put it on the market at that level.