Ownhome scheme suspended - any news?

What did they say? It might be that they have a long wating list for the next appointment and that takes them till early next year. When we applied we had to wait about a month for our appointment so it wouldn't surprise me. Just after we made our appointment the mychoice homebuy scheme ran out of funding and a lot of people who were hoping to go on that scheme made appointments with ownhome - I spoke to them and they said that it had gone crazy because of that and had put a good few weeks on their waiting list. Their funding isn't unlimited - but it's done by area so even if they run out in some areas they might have some left where you are. We are in somerset and there was plenty of funding when we applied (middle of sept).

We have our funding in place and it is reserved for 6 months. We should be exchanging on Monday. But as everyone that gets the funding has it reserved for 6 months it may be that more funding becomes available when people run out of time if they don't use it in time.

SJ x

These are scams. They are just designed to try and keep prices artificially high. I recommend anyone thinking about these schemes speak to an independant finacial advisor. they could help you stop making the biggest mistake of your life.

I have a friend with one of these and it is ripping him up as prices in the area plummet below what he payed for it and then having the after thought that in 9 years you have to pay another 25% which has already been wipped off the price of the property.:eek:

LauraF wrote: »

... I think your friend has misunderstood how the scheme works. He would only pay back 25% of the value of the house when he sells it.

No, brit 1234's friend probably understands, brit1234 definitely does - it is you who seems not to understand, Laura.

Suppose the house was sold with a 100% price of £160,000 - brit's friend bought a 75% share for £120,000. brit tells us that similar properties nearby are now going for less than £120,000 as the 100% price [as I understand it]. Now, if the friend had a mortgage for £100,000, [having put in a deposit of £20,000]. please tell us how he will pay off a mortgage of £100,000 and buy out the £40,000 builder's share by selling the house for £120,000.

There is a problem heer, and laura, before telling anyonethat they have not understood, you need to explain what is wrong with my scenario above

I thought the big difference with Ownhome, and a couple of other shared equity open market schemes like LIFT ( in scotland) is that the amount owed is not fixed, it varies according to the property value and the % they took originally so the amount you repay when you sell ( or decide to pay it off) will depends on whether the value has gone up or down rather than being fixed.

I thought that in many of the shared ownership/equity schemes, especially those through developers, the amount repayable is fixed when you buy so if prices go down you're stung. And developers use them to artificially inflate prices. I personally thought that Ownhome was better from this point of view as its open market which avoids that aspect (unless you buy somewhere overpriced anyway lol!)

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I am also on the LIFT scheme. The way it was explained to us is, the housing association pays X per cent which essentially is the deposit. They will always own that per centage of the current market value. When we sell and we make a profit, the housing association get their X per cent back which means they also make a profit. If we make a loss they also make a loss. We are free to sell the property on the open market again. We also have the choice to buy that per centage back of the housing association

This scheme is about to make my dreams come true.:T:T:T