How to make structural alterations to your Help to Buy home
What structural alterations are, when and how to apply for permission, how they may affect your home's value and what you owe on your equity loan.
Applies to England
Making changes to your equity loan
Before you make any changes to your equity loan or mortgage, you need to understand how those changes may affect you. You should think about getting independent financial and legal advice.
You need to keep paying your management fee, and monthly interest if this is due, until you repay your equity loan in full.
You’ll need to settle any outstanding payments, or set up a payment plan by contacting our Customer Service team, before you can make changes to your equity loan.
When you can make structural alterations
We can only approve structural alterations to your home (changes which alter its layout) if they are made for medical reasons:
- after a change in your or your dependant’s circumstances
- so they will improve your quality of life
For example, this could be because you, your partner or dependant has reduced mobility or a sensory impairment following an accident and suffering an injury.
Things that count as structural alterations
You must get permission from us for:
- anything that needs planning permission
- changes to your home’s layout, like converting two rooms into an open plan living space
- converting a loft or basement
- installing specially adapted kitchen units and worktops
- adding an extension or conservatory
- changing access, for example creating a ramp or widening doorways
Things that do not count
You do not need permission for things like:
- internal redecoration and maintenance
- painting
- carpeting
- installing built-in furniture
- refitting an existing kitchen or bathroom
- landscaping of your garden or surrounding land
Keeping your home affordable
Although we want your home to be suitable for your needs, we also want it to be affordable, so you can still comfortably make your equity loan payments.
Depending on your type of alteration and how it was funded, if the structural alterations increase your home’s market value, they will also increase the equity loan amount you need to repay (as the repayment amount is linked to the market value at the time of repaying). Think about whether you can afford increased repayments.
Any structural alterations you make must not reduce the property’s market value.
Example
You bought a 2 bedroom home with a Help to Buy: Equity Loan. A year after moving in, you had an accident and suffered spinal injuries. Your medical diagnosis says you will have long term mobility issues.
You’d like to make your home more accessible by:
- knocking the wall down between the dining and living rooms, creating an open plan living space without doorways
- changing the bathroom into a wet room
As the changes will alter the house structure and layout, you need permission from us before starting work.
We’re likely to grant your application as the changes are being made for medical reasons and you can provide medical evidence.
How structural alterations will affect your equity loan repayments
If you get permission to make structural alterations, and after making and paying for them yourself this increases the value of your home, the increase in market value will not be added to the total equity loan amount you owe.
If you receive a grant to pay for the alterations, the increase in the value of your home will be included in the market value.
Example
You extended your kitchen with permission based on medical grounds, and after 2 years you want to repay the 20% you borrowed from the Help to Buy: Equity Loan scheme.
You get a certified RICS surveyor to value your home, who says:
- it’s worth £300,000 (not including the extension)
- the extension has added a further £25,000 to its market value
Although the market value is now £325,000, this increase will not be included in the valuation or the final repayment amount for the equity loan.
You would owe £60,000 (20% of £300,000). This excludes any interest or management fees.
Making structural alterations without permission
If you do not get permission to make structural alterations, any increase in your home’s market value will be added to your equity loan, so you’ll owe more.
Example
You built an extra room at the back of your home, but did not get permission before doing the work.
You get a certified RICS surveyor to value your home, who says:
- it is worth £300,000 (not including the extra room)
- the extra room has added a further £25,000 to its market value
This increase in the value of your home will be included in the valuation and in the final repayment amount for your equity loan.
You would owe £65,000 (20% of £325,000). This excludes any interest or management fees.
If you’ve already made structural alterations but did not get permission
If you’ve already made structural alterations to your home, but did not know that you needed permission, you can still apply by following the ‘How to apply’ steps
You’ll also need to complete and send us the declaration of work completed form, even if your application is not successful.
We’ll keep a copy of this form on your customer file.
We will:
- assess your application
- tell you in writing if it’s successful
If we decline your application, you’ll have to either return your home to its original condition, at your own cost, or repay the loan. The cost of the structural alteration will be included in the property’s valuation.
We’ll process your application as soon as we receive all your documents and forms, but we may have to refer your case to another team.
How to apply for permission to make structural alterations
Follow these steps to make your application.
1. Contact our Customer Service team
Let us know you’d like to apply to make a structural alteration and we’ll tell you more about the process.
Phone: 0300 123 4123
Email: [email protected]
When emailing our Customer Service team, please include your account number and a brief summary of your query – for example ‘Structural alterations’ – in your email subject line.
Post: Help to Buy Customer Service team, PO Box 5262, Lancing, BN99 9HE
Our Customer Service team is available Monday to Friday, 8am-8pm and Saturday, 9am-1pm (excluding UK public holidays).
2. Prepare your medical and financial evidence
We’ll need to see evidence showing why the structural alterations are needed.
You must send us:
- a letter from your GP or another medical professional saying why you need the changes
- copies of any planning permission documents, building control approval, quotes for works etc.
- a letter from your property’s owner, if you live in a leasehold property, saying that they agree to the structural alterations, under the terms of your lease
- a copy of the declaration of work completed form if you’ve already made the structural alterations
We’ll also need proof of how you’ll pay for the structural alterations. This could be through:
- private funds: copies of bank statements showing your savings
- additional borrowing: a letter from your mortgage lender saying they approve the structural alterations and will lend you extra on your repayment mortgage to pay for them
- a medical grant to fund all or part of the structural alterations: a copy of your grant confirmation letter
Find out how to remortgage your Help to Buy home to pay for structural alterations.
3. Complete the application form
Complete and sign the application form.
Return your completed form to our Customer Service team with your evidence by email or post using the details above.
4. Pay the administration fee
You’ll need to pay a £50 administration fee when you send us the application form and documents.
You can pay this by:
- online bank transfer
- debit card by calling 0300 123 4123
- cheque
If you pay online, you need to tell us by email or phone so we can confirm it on your customer file.
Our Customer Service team is available 9.30am to 6pm, Monday to Friday (excluding UK public holidays).
We cannot progress your application until we’ve received this payment.
Payment details
Bank name: Lloyds Bank PLC
Account name: EQGATEWAY RE HE HELP TO BUY ADMIN
Sort code: 30-80-12
Account number: 24501860
Reference: Your customer reference number or first line of your address and postcode
5. Getting a decision
You’ll get a decision in writing within 10 working days of us receiving your documents and application fee. We’ll record this on your customer file.
The decision will either be:
- permission to make structural alterations. The value of the alteration will not be included when you repay your equity loan.
- permission to make structural alterations using a grant. The value of the alteration will be included when you repay your equity loan.
- refusal of permission to make structural alterations
We will refuse permission if the structural alteration is not made for a medical reason.
If you decide to make the structural alterations after we refuse your application, or without applying, you’ll put yourself at risk of legal action and potential costs.
We’ll consider taking action against you as you will be breaking the terms of your Help to Buy: Equity Loan.
We may also consider taking action against you with your mortgage lender.
6. Sign and send a ‘declaration of work completed’ form
When any structural alterations to your property are completed, you must complete, sign and return the ‘declaration of work completed’ form, together with any supporting documents, like building control approval.
You need to send this to us even if they have not approved the work.
We’ll hold a copy on your customer file.
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Updates to this page
Published 5 May 2021Last updated 4 February 2022 + show all updates
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Updated to make the separation between Homes England and the equity loan administrator clearer.
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Added link to how to remortgage a Help to Buy home so users know how to borrow additional money for alterations.
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First published.