Rent the house where I live under help to buy scheme

Rocksolid

Is it possible to rent the house where I live under help to buy scheme? So basically renting a room in it.

I would need to do it in case things go very bad, you know, job, illness, accident, etc...

Online I read only that I can't rent it and then buy a second house, in this case I would still live inside that one.

MovingForwards

Help to buy is only available for purchasing a new build property, with a mortgage. 

hazyjo

Do you mean the rent a room scheme? So basically just taking in a lodger?

[Deleted User]

As long as your aren't renting the whole house out but taking in a lodger instead, that is fine.  You will need to use the rent a room scheme for tax obligations.

Rocksolid

Thanks all.

Yes, the idea is a lodger, obviously all following the law, but what do you mean for "rent a room scheme for tax obligations" .

I remember that upon ~7500 pounds a year I don't need to pay taxes, what you said means that I will need to pay them anyway because of help to buy?

What about if I switch country temporarly? Can I rent it? What about if I change also my residence? (so permanent change)

Slithery

Rocksolid said:

I remember that upon ~7500 pounds a year I don't need to pay taxes

Correct. That is the rent a room scheme.

Rocksolid said:

What about if I switch country temporarly? Can I rent it? What about if I change also my residence? (so permanent change)

No. You're not allowed to rent out the whole property until you've paid off the HtB equity loan.

hazyjo

Very basically, if you rent out a room to someone, they're your lodger.

If you move out of the property and leave your lodger alone, they will no longer be a lodger, they will be a tenant and you will be their landlord with a whole heap of legal responsibilities, and rights, and permissions needed.

The two things are drastically different. Read the stickies at the top to establish the difference.

macman

To avoid any confusion, you are letting a room, or renting it out. Not renting it. 

Rocksolid

Fantastic, the answers I was searching for!!!

Very interesting that is sufficient to pay off the equity loan and then I can rent the property!

[Deleted User]

Rocksolid said:

Fantastic, the answers I was searching for!!!

Very interesting that is sufficient to pay off the equity loan and then I can rent the property!

Maybe, maybe not. It’s not just the HTB Equity Loan that could prevent you from letting the property. Your mortgage lender could refuse consent to let in which case you’d need to look at getting a buy to let mortgage. If you purchase a leasehold property then the terms of the lease could prohibit you from letting the property. 

Rocksolid

Lover_of_Lycra said:

Rocksolid said:

Fantastic, the answers I was searching for!!!

Very interesting that is sufficient to pay off the equity loan and then I can rent the property!

Maybe, maybe not. It’s not just the HTB Equity Loan that could prevent you from letting the property. Your mortgage lender could refuse consent to let in which case you’d need to look at getting a buy to let mortgage. If you purchase a leasehold property then the terms of the lease could prohibit you from letting the property. 

Thanks a lot, so, based on the previous message, this does not apply to the lodger schema, right?