Anyone know anything about 'Homebuy' schemes?
Discussion
Me and the missus are looking at renting a place together, but everyone's telling us it's all dead money and that we should buy.
Unfortunately we don't have a deposit so someone suggested the 'Homebuy' or 'Shared Ownership' schemes to us?
Is this as I fear, a scheme for dobber leeches, or something that's worth looking into?
Unfortunately we don't have a deposit so someone suggested the 'Homebuy' or 'Shared Ownership' schemes to us?
Is this as I fear, a scheme for dobber leeches, or something that's worth looking into?
Shared ownership is a good propesition if stumping up a deposit is your problem as you only have to stump up about 15% of your share (normally 15% can be 10% in some cases.). EG A The house you buy is 100k with you buying a 50% share and renting the other 50% from a housing association you have a to put a deposit down of £7500 not £15000.
There is a lot more to it than that but that is the gist, and no I have some very respecable friends the live in shared ownership homes so its not for dossers and dole scroungers.
If you want anymore info give me a pm I have arranged mortgages on lots of these schemes so I know a fair bit.
Hope that helps.
There is a lot more to it than that but that is the gist, and no I have some very respecable friends the live in shared ownership homes so its not for dossers and dole scroungers.
If you want anymore info give me a pm I have arranged mortgages on lots of these schemes so I know a fair bit.
Hope that helps.
I believe there are restrictions when you come to sell - the housing association has first refusal, and there are limits to any profit you can make (though little chance of that in the next few years anyway).
When you look at it like that, I don't see any advantage over renting, and you have the added legal costs, mortgage arrangement fees, plus service charge and other expenses that a landlord usually absorbs when you're renting.
When you look at it like that, I don't see any advantage over renting, and you have the added legal costs, mortgage arrangement fees, plus service charge and other expenses that a landlord usually absorbs when you're renting.
Where I live they got half way through the final phase of the development (thakfully over the far side from me) when the housing market all went a bit belly up and the developers were left with loads of unsold stock, they unloaded it all in a big block for pin money to a housing association who have now shifted about 80% of it in a mixture of "schemes" some being part own part buy, some council tenant and god knows what else. I can honestly say that in my experience the area IS full of dossers and dole scroungers, Ok maybe not all of them but it's not somewhere I'd like to live and I only wish the distance between us was greater.
It's not all bad though, the bloke the other week that got thrown off the 3rd floor balcony didn't actually die and the other one that got stabbed, well it was only through the hand so not exactly life threatening.
It's not all bad though, the bloke the other week that got thrown off the 3rd floor balcony didn't actually die and the other one that got stabbed, well it was only through the hand so not exactly life threatening.
mel said:
It's not all bad though, the bloke the other week that got thrown off the 3rd floor balcony didn't actually die and the other one that got stabbed, well it was only through the hand so not exactly life threatening.
Well there's a recommendation.They should use that as the strapline on their ads.
There is a new way called rent to buy, which has been proved to work with people I know. You agree a time scale, and final value amount, work it so that its an affordable monthly amount with the landlord/property owner, pay part rent plus part deposit each month.
When it comes to the time you have to get a 'mortgage' from a bank, your deposit has been saved up, and if done right your LTV is greatly reduced. Landlord gets a guaranteed tennant and a sale after 5 years, you get a home, from the outset and end up owning it. That way you can not be throwing your ££ away, but not be tied in to a crippling mortgage should you realise the mrs is a nightmare to live with or vice versa. (which happens!)
If you need more info, let me know. This is all sealed up, fully official with solicitors, and is perfect for people who want their own place, but raising £20k just isnt going to happen.
When it comes to the time you have to get a 'mortgage' from a bank, your deposit has been saved up, and if done right your LTV is greatly reduced. Landlord gets a guaranteed tennant and a sale after 5 years, you get a home, from the outset and end up owning it. That way you can not be throwing your ££ away, but not be tied in to a crippling mortgage should you realise the mrs is a nightmare to live with or vice versa. (which happens!)
If you need more info, let me know. This is all sealed up, fully official with solicitors, and is perfect for people who want their own place, but raising £20k just isnt going to happen.
NoelWatson said:
What do they call the interest part of their mortgage repayments?
A necessary part of the repayment mortgage? I don't know much about the scheme save that you get a mortgage for a portion of the property value and then an interest free 5 year loan for the remainder. I can ask my friend if you like as she looked into it.
I also noticed that the homebuy properties appear to be rather more expensive than the other similar properties but then with the "discount" they come in slightly under normal market rate for the similar properties.
I was under the impression that you take all the risk with this type of scheme when it comes to the house dropping in value,put in simple terms the house costs £200k you buy half they own half but if it drops in value their 100k is guaranteed where as the loss comes out of your 100k.
I'm interesting in knowing how this works, not because im in a position to buy, but because someone my sister used to live with has just bought a 50% share of a flat.
Lets say the flat was £200,000 (i think its less than that, but round numbers are easy).
So friends puts deposit on £100,000 and pays morgatge on ther rest.
Developer owns £100,000 and collects rent for that half.
I think shes paying about £600 a month for rent and morgatge. (fianance is with developer)
She probably didn't pay stamp duty (1st time uyer and price not high enough) but say in 10 years time you want to buy the 2nd half, would you be liable for stamp duty on that? would you still be a first time buyer or a second time buyer?
Can you actually benefit form doing this? Say in 10 years time, the flat is now £300,000. So your half has gone up £50,000 and the developers half has gone up £50,000.
If you wanted to buy the other half, any equity you have gained is lost as the 2nd half you buy will have gone up by the same amount.
Im also guessing your liable for 100% of maintance/council tax/service charges even though you only own 50%
Wouldnt it be better to buy 100 % of a cheaper flat? This flat is in the centre of brighton, a flat further out would be much cheaper.
Lets say the flat was £200,000 (i think its less than that, but round numbers are easy).
So friends puts deposit on £100,000 and pays morgatge on ther rest.
Developer owns £100,000 and collects rent for that half.
I think shes paying about £600 a month for rent and morgatge. (fianance is with developer)
She probably didn't pay stamp duty (1st time uyer and price not high enough) but say in 10 years time you want to buy the 2nd half, would you be liable for stamp duty on that? would you still be a first time buyer or a second time buyer?
Can you actually benefit form doing this? Say in 10 years time, the flat is now £300,000. So your half has gone up £50,000 and the developers half has gone up £50,000.
If you wanted to buy the other half, any equity you have gained is lost as the 2nd half you buy will have gone up by the same amount.
Im also guessing your liable for 100% of maintance/council tax/service charges even though you only own 50%
Wouldnt it be better to buy 100 % of a cheaper flat? This flat is in the centre of brighton, a flat further out would be much cheaper.
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