Can I rent out my help to buy?
No, you cannot typically rent out your help to buy based on the eligibility requirements of the help to buy scheme. The scheme includes the help to buy equity loan, the help to buy ISA, the armed forces help to buy, rent to buy, the intermediate rent scheme and the shared ownership scheme.
If you rent out your help to buy home you could be evicted in the case of a shared ownership and asked to pay back the help to buy equity loan in the case of a help to buy equity loan scheme.
You cannot use the help to buy scheme as a replacement for a buy to let mortgage. You cannot have a second property whilst owning a property under the help to buy scheme.
When can you rent out your help to buy home?
To rent your help to buy home you will need to staircase to 100% after which you can rent it out without any repercussions. To staircase your help to buy you should seek legal advice and speak to a shared ownership mortgage broker.
The only time when you can rent out your help to buy home is when you have received written permission from your help to buy agent that renting is fine.
If you bought your home through the armed forces help to buy and are away on duty the it is very likely your help to buy agent will let your rent your home out.
Having a lodger in your help to buy home may also be classified as renting your help to buy home out so you should check with your help to buy agent to ensure you are not in breach before offering your help to buy home for rent to a lodger.
When seeking permission to rent your help to buy home, ensure you seek permission from the mortgage lender who lent you the funds to buy the home as you could be in breach of your mortgage agreement by renting out your help to buy home.
If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.
You can also contact the debt charity “Step Change” if you are in debt and need help.