Help to Buy – Not to Let
We recently had a client come to us here at Protheroe Property wanting us to let out their house. They had bought their first home with a little help from the government’s Help to Buy scheme but had now met someone and wanted to move in with them, as tends to happen in life. So the client decided to let out their house – a great idea I hear you say? Sadly not.
What a lot of buyers who have used the scheme don’t know is that the help to buy rules specifically forbid the property owner from renting out their property and state that it must be their only residence. Except in exceptional circumstances – i.e. you’re in the armed forces on a tour of duty and away from home – the help to buy rules clearly state that if you want to rent out your home you must first repay the help to buy loan.
This means having your property revalued to see how much you have to repay.
So what are your options?
Pay off your loan.
But what if you don’t have the cash?
You could increase your mortgage, with the permissions of your help to buy mortgage administrator and your mortgage lender.
What if increasing your mortgage isn’t an option?
Your only other options are to live in your home or to sell.
So much for making home buying easier…
The moral of the story you ask? Always check the terms of your agreement and consider the long term implications before signing.
Thanks for reading,
The Protheroe Property Team