I inherited my Father’s house last November & already own my own home with no mortgage. (I’m retired) I decided to rent my father’s house and easily found a nice local family wanting to rent close to their place of work Leicester.
They have been renting now for almost 18 months on a simple 6 monthly renewable contract and would like to buy this house from me using the “Help to Buy Scheme” They are “First Time Buyers” and as they are getting married next year are struggling to save the deposit required for a normal mortgage without some help.. The house is around 65 years old and approx. valuation £105k – 110k.
If you can help me understand whether they & this property would be eligible for the “Help to Buy” scheme it would be appreciated.
Video: Short Term Tenants Want To Buy House From My Late Father
Hello I’m Jonathan from House Buy Fast and I’m here today to answer some questions kindly provided by Zoopla.
I have a question here from mgarlick who has inherited a property which he now let’s out, and he’s wondering if the people in there could have a help-to-buy scheme loan from the government and from a building society or bank in order to buy the property.
The answer is that yes they should well be able to, apparently their first time buyers so of course the scheme does apply to them. There are couple of things just to think about; of course they will have to show to any bank or building society that they borrow the remainder of the money from as opposed to the government part of the money that was provided, that they have sufficient income to have a mortgage and also they don’t have adverse credit history perhaps where they have not paid bills, rent and higher purchase agreements and that kind of thing in the past.
So subject to their status I think its well worth them speaking to an independent financial adviser and seeing the best route to proceed so hopefully they can become buyers.
I would suggest though Mr Garlick that you do check with an accountant before you sell the property because you may be liable for some form of inheritance tax or capital gains tax, so you want to factor that into the equation as well to make sure that it is actually worth you selling the property and also just to check if timing is important to you.
So it’s worth just having a quick word with an accountant on that point, and I hope it all goes well for you, thank you.