Help to Buy - Government Equity Loan Scheme

ianpalmer2007

Hi - we want to use this scheme to buy our “final” retirement home that we have seen but from what I read we would not be eligible but we are hoping there is a way around it? We would put 80% cash from the sale of our current apartment home (and some top up from our savings) into the purchase and use the 20% loan scheme for the balance.

We currently live in an apartment which is wholly in my wife’s name and we also rent out a 2nd apartment which to use her tax allowances is legally registered at the Land Registry as 99% to 1% in her favour. We need the income from the rental property until my wife gets her pension in 5 years time so we don’t want sell it yet. 

So, is it possible we could use this scheme to purchase a new home from the builder for £235k and buy it in my name as technically I only own 1% of a flat that we rent out?
The plan would be to sell the rental apartment in 5 years and there would be more than enough to pay off the government loan at that time.

Is there a way we can do this without selling the rental apartment?

Thanks for reading if you got this far!

bucksbloke

You can't own a property and do the Help to Buy scheme. Solicitors acting on behalf of HCA are required to ensure that any interest is sold before completion.

[Deleted User]

ianpalmer2007 said:

Hi - we want to use this scheme to buy our “final” retirement home that we have seen but from what I read we would not be eligible but we are hoping there is a way around it? We would put 80% cash from the sale of our current apartment home (and some top up from our savings) into the purchase and use the 20% loan scheme for the balance.

We currently live in an apartment which is wholly in my wife’s name and we also rent out a 2nd apartment which to use her tax allowances is legally registered at the Land Registry as 99% to 1% in her favour. We need the income from the rental property until my wife gets her pension in 5 years time so we don’t want sell it yet. 

So, is it possible we could use this scheme to purchase a new home from the builder for £235k and buy it in my name as technically I only own 1% of a flat that we rent out?
The plan would be to sell the rental apartment in 5 years and there would be more than enough to pay off the government loan at that time.

Is there a way we can do this without selling the rental apartment?

Thanks for reading if you got this far!

 To be eligible it has to be the only property you own and the 1% of the rental property you own renders you ineligible. 

ianpalmer2007

Thanks for your replies - I’ve since discovered you also have to get a mortgage to be eligible - so it’s a no for us.