Has anybody improved/extended their help to buy home?

Tudor02546

We’ve exchanged on a new build with using the help to buy loan. But the developer has mentioned that we will need permission to extend or adapt the house. I’ve looked into this and there doesn’t seem to be much advice. Has anyone added a conservatory/small extension to their new build? Did target give you permission? Can you extend/add improvements without their permission? Has anyone since sold their property with the extension and come across any difficulties? Can they actually stop you from adapting your home? The only advice I’ve come across is about adaptations to do with disability, not just general home improvements. I’ve contacted target but have not received a response. Any info is greatly received, we’re thinking of backing out if we can’t actually do what we want with the house! 

Defangled

Hi. We're about to exchange. I think the Help to Buy mortgage deed and guidance is quite clear on the fact that no you can't do any structural changes without consent from the Local HtB agent. 

"Not to make or cause or permit to be made any alteration in or addition to the Property nor carry out any development or change of use on the Property within the meaning of any legislation for the time being relating to town and country planning without the previous consent in writ ing of the Lender such consent not to be unreasonably withheld."

After all, they own % equity.  

Tudor02546

Thanks for the response. Maybe they’ll agree to the alterations and it’ll all be fine! Does it state what will happen if you do any alterations though? I’ll have to dig out the contract I think! 

MovingForwards

You need to read your H2B documents as you can't make structural changes etc, only way to do that is pay the H2B off.

It's a new build property, why didn't you pick one which met your requirements or buy an old one where you can make changes, subject to permitted development / planning permission etc.

Tudor02546

We’d love to be in a position to be picky and choose a house that suits our every need but that is just not the case in the current climate. We’re not able to pay off the loan either, not even some of it but we do now have a small amount (stamp duty) to add on a conservatory or something for a bit of extra space. Clearly this is not going to be an option though.

RelievedSheff

Don't forget that when you repay the HTB loan it is a percentage of the sale price not the purchase price that you pay back.

By extending the property you could increase its value and thus increase the amount you owe under the HTB scheme. 

You would be better off waiting until the HTB loan is repaid before making any changes to the house.

Tudor02546

I’d happily pay the extra % if the property does rise in value...we’ll have benefitted from years worth of the extension. Thanks for all the responses 😊