Loft conversion on property bought using help to buy

[Bananamanfan]

We want to convert our loft and have a quote we are happy with. As we have a help to buy charge on our property it seems that we cannot do it. We bought 3 years ago, have a 5 year fixed mortgage (2 years left).
It seems we can't increase the mortgage without paying the help to buy loan in full first. It's looking like our only option for a 4 bed house is selling and buying a 4 bed on help to buy, which are priced £90k + what our house is worth.
Does anyone have any experience of this? It seems there is no way around it.

I'd go and see a mortgage advisor and see what they think. I did google it and it appears you can remortgage completely and pay off the loan but there would be quite high costs to be paid to remortgage. . I suppose it's too expensive to take a bank loan out to do the conversion. Why not just wait and do the loft when your 2 years is up rather than sell and buy another property. And would you get help to buy on your next property. I thought it was only for first time buyers.

They are quite clear when you buy the house that the only way you can remortgage is to pay the loan off.

I really wouldn’t go taking out a huge bank loan as you’ll have your h2b interest payments starting in two years, unless you can easily afford both payments. You’re less likely to be able to remortgage to pay the h2b bit off if you have a big bank loan as well.

Can you not stick it out for another couple of years?

Hi Vivienne, I have been to see a mortgage advisor and she told me the above. I was surprised we could take out another help to buy loan, but i have checked the website and it does seem to be the case. We do have some savings that we could pay the early redemption penalty with, but I think our repayments would be sky high due to the changed loan to value.
It seems our only option is to wait 2 years when we have more equity. Ds1 is 20, at uni and I imagine will still be living with us in 2 years; he has the smallest room. DD is nearly 7 and would love her own space away from ds2 4.5.
The loft conversion was going to solve a lot of issues; ds1 would have more space for work area and a bathroom so he is not disturbing us in the night & dd & ds2 get their own rooms with more space to put toys. It's frustrating when we have such a good space up there.

It is annoying but I'd be careful of over-stretching yourself. But I usually err on the side of caution. It's a nuisance as it's probably only for the next two or three years you need the extra space. I take it your DS is living at home while at Uni and not just there in the holidays. And would you even need an extension when your DS leaves Uni as he could very well find a job and move away. I think I'd re-assess after two years and make do for the moment but of course it's up to you.

I’d recheck the information you have been given - help to buy is for first time buyers only. It may be the mortgage guarantee that you’re looking at. Wouldn’t be the first time we’ve been mis informed by a broker (no disrespect to the good ones)

Don’t forget that you have to repay the help to buy at the current independent valuation not the original value

Yes you're right, i really want to avoid any financial pressure, we could "afford" to buy the 4 bed on the affordability test , but I wouldn't be comfortable. It is the help to buy on new build we have, 20% equity loan. I'm not too worried about the fact that they
own 20% of the property we could only afford 80% by the skin of our teeth at the time and the mortgage lender owns most of it :-)
Ds is living at home & commuting to uni.
Thanks for your views.

Hello, we bought a flat with help to buy and like you the housing association own 20%. We tried to get a loan via a mortgage broker who was initially optimistic, provided no end of paperwork and documentation and were finally refused (by nationwide). In the end we borrowed off a family member and did the extension. If i could pay them back I would, it's going to be really annoying handing back double what we borrowed when we eventually sell up!