House Selling question PLEASE

[Nemesis45]

Hey all, hope i can get some help from the complex situation i am in.
We own a house in the UK bought 5 yrs ago under help to buy. 165k bank + 50k gov loan.
Due to work, we moved outside UK tax area as we cant rent it out formally, we are paying mortgage and vositing the house couple of times a month which happens to be financially draining.
We have put it up for sale, however no avail for now.
Can somebody maybe advise of alternative options ie remortgaging: need to close gov loan for that, not enough cash to shed.
If we could remortg it and rent it out, that would help.
Any ideas??
Thanks

 

[Psycho Sonny]

Hey all, hope i can get some help from the complex situation i am in.
We own a house in the UK bought 5 yrs ago under help to buy. 165k bank + 50k gov loan.
Due to work, we moved outside UK tax area as we cant rent it out formally, we are paying mortgage and vositing the house couple of times a month which happens to be financially draining.
We have put it up for sale, however no avail for now.
Can somebody maybe advise of alternative options ie remortgaging: need to close gov loan for that, not enough cash to shed.
If we could remortg it and rent it out, that would help.
Any ideas??
Thanks

you would need a buy to let mortgage which means you need to pay back that loan i would have thought. have you read the T & C's of the loan?

why not just drop the price of the home for a sale? if it's not selling it's overpriced.

 

[Nemesis45]

I have read T&Cs of course.
We didnt plan leaving the UK and so it happened.
Cant sell the house below market value as per TCs. House is well priced.
I know i have to close the loan for remortgaging, am just wondering with absence of cash pf any other workaround such as perhaps a loan to pay off gov loan, the remortgage and give back etc..

 

[IvanDobskey]

Thing is, if it was well priced it would sell. Something is only worth what someone is prepared to pay for it unfortunately. Maybe try knocking 10k off, but adding offers in excess of? You'll get more viewers.

 

[Nemesis45]

Believe me the house is priced to sell, with offers option, no luck for now. Advertised premiumly, all boxes ticked.

 

[JC]

What's the specific reason you can't rent it out? Whilst you might be thinking you need a buy-to-let mortgage, it is possible to ask your lender for consent, and then from a mortgage perspective that wouldn't be an issue.

 

[BUDFORCE]

What's the specific reason you can't rent it out? Whilst you might be thinking you need a buy-to-let mortgage, it is possible to ask your lender for consent, and then from a mortgage perspective that wouldn't be an issue.

This, I don't know many lenders that won't agree it.

 

[Abyss]

This, I don't know many lenders that won't agree it.

He also has a shared equity loan through help to buy that forbids letting the property out. He would have to remortgage for this amount first.

 

[Nemesis45]

Yes. I cant rent it out due to help to buy; asked for consent to let explained reason several times no luck.

 

[Psycho Sonny]

Believe me the house is priced to sell, with offers option, no luck for now. Advertised premiumly, all boxes ticked.

As much as I'd love to believe that I can't see how it's true.

Can you post a link to the advert on right move?

I'll tell you how much I would pay for it based on the area, condition and what other similar houses sold for.

That's your selling price.

Unless you bought new build those I find are usually grossly misoverpriced to begin with.

You need to sell the house or move back and work locally. Those are the only 2 options I can see that are viable long term.

 

[BUDFORCE]

You could ...just rent it without telling the lender.

Slightly naughty but if you pay your mortgage the lender will never know.

 

[Burned_Alive]

You need to sell or re-mortgage for a buy to let. As mentioned above, if the house isn't selling then it's priced too high for the market/area.

I don't believe the government H2B loan should prevent you from renting it out as this was not your intention when you purchased the property originally. See below;
https://blog.moneysavingexpert.com/...me-bought-with-a-help-to-buy-isalifetime-isa/

 

[Psycho Sonny]

You could ...just rent it without telling the lender.

Slightly naughty but if you pay your mortgage the lender will never know.

As long as he pays all the income tax due. Will likely need to fill out a self assessment form every year, etc.

 

[BUDFORCE]

As long as he pays all the income tax due. Will likely need to fill out a self assessment form every year, etc.

True.

 

[D.P.]

As long as he pays all the income tax due. Will likely need to fill out a self assessment form every year, etc.

On;ly if he is a resident of the UK for tax purposes. Otherwise he needs to fill the equivalent tax forms for the country he lives in.

 

[samcat]

You could ...just rent it without telling the lender.

Slightly naughty but if you pay your mortgage the lender will never know.

If you get caught (and you will eventually, they have a lot of periodic automatic checks) you will be put in a position of pay back the loan or forefeit the property and potentially end up on the hunter database... You dont want that.

 

[Psycho Sonny]

On;ly if he is a resident of the UK for tax purposes. Otherwise he needs to fill the equivalent tax forms for the country he lives in.

wrong

https://www.gov.uk/guidance/paying-tax-on-rent-to-landlords-abroad

The Non-resident Landlord Scheme
A landlord who lives abroad for more than 6 months of the year must pay tax on any income they get from renting out property in the UK. If the landlord is a company or trustee, the rules about their usual place of abode apply.

The tax is collected using the Non-resident Landlord (NRL) Scheme.

The tax can be paid by either:

• a letting agent
• the tenant

If the landlord is a joint owner, tax is paid on their own share of rental income.

 

[fastwunz]

If you get caught (and you will eventually, they have a lot of periodic automatic checks) you will be put in a position of pay back the loan or forefeit the property and potentially end up on the hunter database... You dont want that.

This - I’m a surveyor and am often tasked with checking exactly these things - do it by the book. Don’t chance it.

 

[DarrenM343]

Believe me the house is priced to sell, with offers option, no luck for now. Advertised premiumly, all boxes ticked.

Something is only worth what someone is willing to pay for it in the timeframe the owners of it wishes to sell. The problem IMO right now is that we have this Brexit palava ongoing. Housing market is quite a slow market regarding updating of prices. For example if 5 houses sold in January for around £200k but nothing since in an area people think that;s the market value but if something doesn't sell, it's obviously not, a
The market value should be determined by adjusting the price, downwards, until sold
I have had a similar issue where I couldn't sell a property. I didn't want to lower it so just rented it out again and will let the market come to me (eventually). Letting isn't as easy as some think, especially with the changes to mortgage relief on tax and you'd need to have it fully managed as you're out of the country which will be 10% or so per month. It's an option but it seems like you'd need to borrow enough to pay off the government loan. What a lender will likely offer you will be based on the rental potential. The best deals are I think when LTV is 60% or lower.

 

[Nemesis45]

Thanks for the info
I agree with your comment. Only problem i cant sell it for less than market due to help to but conditions

This - I’m a surveyor and am often tasked with checking exactly these things - do it by the book. Don’t chance it.