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Help to buy and LTD company mortgage?


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Hi all,

This is my first post and I hope someone can help!

My gf and I is looking to buy our first BTL property under a limited company and I understand that we will need to do personal guarantees against the mortgage (which is fine).

We both have our own residential mortgages , however, she has a help to buy equity loan on hers.

I understand that with HTB you can’t own another property until you have paid off your existing equity loan (or sell the property) . Is this also the case if the property is purchased under an ltd company as it is a separate entity?

Many thanks in advance, 

Jordan 

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Last time I looked at the HTB T&C is more about 2nd homes. Not preventing people from running a side business. Though the best person to tell your partner if you are breaking the T&C would be a Solicitor. 

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Please don't take my messages on Property Hub as Personal Financial Advice, just a rambling guy passing time on a Coffee Break.
 

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Hi Jordan,

I've already posed this question to one of the Help to Buy agents, who went to their mother organisaton (Homes England) for an answer. This is what they said: 

"Homes England have advised that the person would need to be able to sign a declaration that they will not profit from any of the homes owned through the Buy to Let Company and that they will take legal advice on the matter. If they are happy to comply with this then they are free to have Help to Buy."

Hope it helps, Lilla

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On 7/3/2019 at 11:36 AM, adam hosker said:

Last time I looked at the HTB T&C is more about 2nd homes. Not preventing people from running a side business. Though the best person to tell your partner if you are breaking the T&C would be a Solicitor. 

Thanks Adam 

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  • 1 year later...

Hi Jordan,

Appreciate it's been a while but I'm in a similar position to your other half and was wondering how this turned out for you?

Was the Ltd company a compliant way of getting around the HTB loan T's and C's?

Thanks,

Matt

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