Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • jennylm84
    • By jennylm84 16th Apr 18, 12:52 PM
    • 2Posts
    • 0Thanks
    jennylm84
    Selling a Help to Buy House - options?
    • #1
    • 16th Apr 18, 12:52 PM
    Selling a Help to Buy House - options? 16th Apr 18 at 12:52 PM
    I bought an apartment in Lancashire using the Help to Buy equity loan scheme in December 2013, when I was working nearby. I now need to move to Central Manchester as I am working across Manchester, Leeds and Liverpool, and commuting via public transport from the countryside is costing me a lot of time and money. Buying a car would not significantly improve matters - it would still take me a long time to travel to and from work. My social life is now primarily Manchester based too and I feel I am essentially commuting home to bed!

    I bought using Help to Buy, and have seen that this probably inflated the purchase price somewhat. My friends who bought at the same time put their apartment (which is very similar to mine) on the market 7 months ago (for 5,000 above the price we both paid in 2013), and it has not yet sold. While I am happy to break even, I simply cannot afford to sell for less than the purchase price.

    Would people advise I put it up for sale, hope it goes quickly, and continue to tolerate the tiring and expensive commute, or given the slow market might it be better to remortgage in order to pay off the Help to Buy loan and rent out the flat? I would rather sell as I want to buy a place in Manchester (if I rented out my flat I would rent out a room in the city), but my main priority is to move quickly. Has anyone any experience with selling or renting Help to Buy homes - if so, what would you recommend?
Page 1
    • silvercar
    • By silvercar 16th Apr 18, 1:26 PM
    • 37,240 Posts
    • 156,892 Thanks
    silvercar
    • #2
    • 16th Apr 18, 1:26 PM
    • #2
    • 16th Apr 18, 1:26 PM
    You are going to struggle to get a BTL mortgage without owning a residential property to live in.
    • jennylm84
    • By jennylm84 16th Apr 18, 1:36 PM
    • 2 Posts
    • 0 Thanks
    jennylm84
    • #3
    • 16th Apr 18, 1:36 PM
    • #3
    • 16th Apr 18, 1:36 PM
    Would I have to get a BTL mortgage? Could I not just remortgage to pay off the equity loan (this should be affordable on my current salary) and then a few months later request permission to let from the lender?

    People without HTB who move in with partners etc seem to be able to do let out property without a BTL mortgage. I've no real desire to be a landlord and would rather sell, but I want to explore all options.
    • Gwendo40
    • By Gwendo40 16th Apr 18, 2:29 PM
    • 106 Posts
    • 101 Thanks
    Gwendo40
    • #4
    • 16th Apr 18, 2:29 PM
    • #4
    • 16th Apr 18, 2:29 PM
    Why can you ''simply not afford to sell for less than the purchase price''?

    Plenty of people had to do this at numerous times in the past... before the govt and BoE adopted a ''protect homeowners and house prices at all cost'' economic policy.
    • bhughes1986
    • By bhughes1986 16th Apr 18, 7:33 PM
    • 31 Posts
    • 8 Thanks
    bhughes1986
    • #5
    • 16th Apr 18, 7:33 PM
    • #5
    • 16th Apr 18, 7:33 PM
    Go with the option of remortgage to pay off HTB. Consent to let, them you rent elsewhere.
    • silvercar
    • By silvercar 17th Apr 18, 8:31 AM
    • 37,240 Posts
    • 156,892 Thanks
    silvercar
    • #6
    • 17th Apr 18, 8:31 AM
    • #6
    • 17th Apr 18, 8:31 AM
    You need to find out your lender's policy on consent to let. Some won't agree to it, some will agree to it for a fixed time, some will increase your mortgage rate.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

225Posts Today

2,070Users online

Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line? https://t.co/kwjvtd75YU

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

  • Follow Martin