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Original poster

Must move out of our "Help to Buy" house due to DH's new job

31 replies

mimmymouse · 29/06/2014 18:37

A few weeks ago, on a whim, DH threw an application in for his dream job (which he thought he wouldn't have a hope of getting): and the bugger only went and got it.

So we have to move. We bought our house through the new build Help To Buy scheme last July. We absolutely love this house and if this wasn't the best opportunity for our family, we would stay forever. Tis lovely.

Has anyone had any experience with renting out/selling their HTB house? We are assuming we will have to sell as the HTB people are quite fierce about it being for residential purposes only. However, we never had any plans to move. Jobs such as the one DH has just been offered come up very seldom and there was certainly no plan!

Let me know your experiences.

Thanks very much.

OP posts:
ChickenFajitasAndNachos · 29/06/2014 19:39

So would you sell up and pay back the help to buy money? How does it work?

Original poster
mimmymouse · 29/06/2014 19:43

They have a 20% equity stake in the house. Indeed, I imagine we would have to sell and pay it back. I was hoping to hear from someone who had been in this situation. Obviously it is all very recent as HTB is relatively new…..

OP posts:
Jcee · 29/06/2014 19:45

You'll need to sell and repay the equity loan - you won't be able to rent it out as a condition of the help to buy loan is that it is your main residence.

When you purchased you should have received a pack with details of who to call for advice if you want to sell.

Original poster
mimmymouse · 29/06/2014 19:47

We did and I understand that. I was wondering though, as it is such an unforeseeable situation that it might have had some wiggle room. I realise this is a VERY long shot

OP posts:
NoArmaniNoPunani · 29/06/2014 19:49

This might be relevant:

When you sell your Help to Buy home, unless you have chosen to repay your equity loan earlier, you must repay the equity loan portion from a share of the sale proceeds.
So, if you got a 20 per cent contribution, your repayment will be 20 per cent of the total market value when it is sold.
You can choose at any time to make voluntary part repayments, known as ‘staircasing’ or a full repayment, of the Help to Buy assistance at the prevailing market value. The minimum voluntary repayment is 10 per cent of the market value at the time of repayment.

CharlesRyder · 29/06/2014 19:50

So, is it that you really want to let it rather than sell?

Original poster
mimmymouse · 29/06/2014 19:54

Yes, we'd love to keep the house. It's just terrific. And NoArmani that is indeed relevant.

I have read the info, but I was hoping to hear from other folk who had been in that situation and seen what happened to them.

Thanks for showing an interest. Much appreciated.

OP posts:
Original poster
mimmymouse · 29/06/2014 19:54

I realise that I am being beyond hopeful! Thanks very much

OP posts:
Dayshiftdoris · 29/06/2014 20:02

I am in shared ownership which have been around much longer but the tie ins are very similar and there appears, reading around, very very few who have been allowed to rent out their home and it depends on the HA / builder you share with....

There is 'exceptional circumstance' for renting and though I have read of it happening when someone has been in a too small a property and unable to sell due to negative equity this has been on a short term basis (6-12months).
IME even truly exceptional personal circumstances (serious illness) the HA I am with have been known to refuse a request leaving a family paying for a home they weren't allowed to live in and the person too unwell to live him.

Your only option and I would consider it is staircasing... The sooner you are out of a scheme like this the better if you ask me...

NoArmaniNoPunani · 29/06/2014 20:02

I think as help to buy is so new there won't be many people selling up just yet. From the little I know of the scheme you won't be able to rent your house out unless you pay back what you owe to the scheme first.

Original poster
mimmymouse · 29/06/2014 20:04

Indeed. Well, it seems fairly hopeless. I do love this house, but the opportunity we have now is fairly extraordinary and it is, after all, just a house.

Thank you all.

OP posts:
CharlesRyder · 29/06/2014 20:08

You need to look into the 'main residence' thing. Presumably if you let it out then you would rent your new place? As such you would still only own one home?

It may be that if you only OWN one home they can't get you.

We live in tied accommodation but own a house we let out and know many people in the same situation so the legal ins and outs of this are a regular topic of conversation.

Original poster
mimmymouse · 29/06/2014 20:10

That is BRILLIANT CharlesRyder as we will be moving into accommodation provided with DH's job. Thank you!

OP posts:
Jcee · 29/06/2014 20:10

Help to buy is structured to help people get into the housing market and if they wish to move on (for whatever reason) they need to redeem the loan and due to the nature of the scheme, there are safeguards to prevent people buying (& accessing the 20% Govt support) to just rent out the property.

As Noarmani says if you want to keep the house and not live in it, then you'll need to staircase out so you own it 100% then you can do what you want with it.

Shared ownership is slightly different with different rules, houses can be rented out but it as Dayshift says its down to the individual housing association and the circumstances of the request.

IfYouCouldSeeMeNow · 29/06/2014 20:13

Unfortunately, it specifies main residence as being where you live for the majority of your time. Unless only Dh is moving out, this won't qualify.

Original poster
mimmymouse · 29/06/2014 20:14

Jcee, you are absolutely right and I respect the spirit of the support. We most certainly didn't buy just to rent it out. The only reason we are moving is for DH's job. Thanks for replying. Appreciate your assistance.

OP posts:
DizzyCow63 · 29/06/2014 20:17

Would your DH's new job put you in the financial position that you are able to re-mortgage to staircase and buy out the 20% equity share and therefore remain in the house? That's presuming it's your preference to keep living there.

Congrats to your DH Thanks

Jcee · 29/06/2014 20:18

No i appreciate that...life sometimes gets in the way of how Govt decides rules...having seen you'll get tied accommodation with new job, it might be considered exceptional circumstances (similar to how armed forces working elsewhere would be approved) however it will also be down to your mortgage lender and they may not agree.

DizzyCow63 · 29/06/2014 20:18

Sorry x-posted, misread that you have to move for the new job, sorry.

MisForMumNotMaid · 29/06/2014 20:19

Is there anyway with the new job you'd be able to get a different loan/ extend your mortgage to cover the 20% and keep the house to rent out?

MisForMumNotMaid · 29/06/2014 20:20

Sorry xpost with dizzy

Dayshiftdoris · 29/06/2014 20:39

jcee

Reading around even though it's possible 99.9% it's a no - even with genuine and truly exceptional circumstances...

OP - If your accommodation with DH's job is paid for then think how my lease is written then is it possible for DH to move to the new address, you to stay on the current house as your main residence, children to be at DHs house (for school, etc) and you return for a few days every month?
You would have two sets of bills and it might be cheaper to get a loan to buy out your 20%

My lease states that the property must not be unoccupied for more than 30days & it must remain my main residence

HaveToWearHeels · 29/06/2014 20:39

Again as Dizzy and Mis say could you not take out a BtL mortgage for the full value of your home and pay back the 20% ?.

Dayshiftdoris · 29/06/2014 20:45

Main residence is loosely defined in law - a lot if students I lived with in the nurses home (ok long time ago) had a 'main residence' elsewhere at their parents house...

Found this:

www.gosport.gov.uk/sections/your-council/council-services/council-tax/sole-or-main-residence/

If you can fulfil those requirements then it's possible

Efferlunt · 29/06/2014 20:45

If you are not living there and don't have massive out goings elsewhere could you refinance onto a buy to let morgage? (These are often interest only and cheaper than a main morgage) you could keep your dream house. You would probably need to leave a bit of equity in the propery though.

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