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    • MarkDown
    • By MarkDown 25th Oct 16, 9:43 PM
    • 3Posts
    • 0Thanks
    MarkDown
    Unmortgage
    • #1
    • 25th Oct 16, 9:43 PM
    Unmortgage 25th Oct 16 at 9:43 PM
    Has anyone had any experience with getting an "Unmortgage?" I have read a lot about them and would like to hear people's reasoned opinions both for and against the idea particularly with relevance to buying in London. It seems like a very sensible in between to renting and buying independently.

    Look forward to people's thoughts.

    Thanks
Page 2
    • PGTips54
    • By PGTips54 11th Oct 17, 10:30 PM
    • 1 Posts
    • 0 Thanks
    PGTips54
    I have no personal knowledge of 'Unmortgage'.
    Their website must be amongst the least informative I have ever encountered though I've not followed the 'Get Your Budget' link. I can only think that their strategy is to create curiosity.
    I suspect they are trying to create a synenergy between the occupants (tenant/part owner) and the investor (landlord). I imagine it might work as follows:
    The occupant, in effect, gets to pay, what would conventionally be their deposit, (beyond 5%), in the years after moving in.
    The landlord has the benefit of a tenant with a personal interest in the property - potentially better upkeep and no rental voids.
    I would like to think that capital risk and upkeep costs are shared pro rata to capital shares.
    Perhaps I should copyright this explanation in case 'Unmortgage' wish to add it to their website !!
    • csgohan4
    • By csgohan4 12th Oct 17, 6:56 AM
    • 4,020 Posts
    • 2,499 Thanks
    csgohan4
    Scam written all over it
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • chappers
    • By chappers 12th Oct 17, 8:24 AM
    • 2,956 Posts
    • 1,703 Thanks
    chappers
    I don't think so it's just shared equity under another guise, downscaled to include individuals. As it's commercial it will be more expensive than government shared ownership schemes.
    The only issue I see is that due to the large salary multipliers, stepping up might be a serious problem for a lot of people.
    • davidmcn
    • By davidmcn 12th Oct 17, 8:31 AM
    • 6,283 Posts
    • 6,064 Thanks
    davidmcn
    I don't think so it's just shared equity under another guise, downscaled to include individuals. As it's commercial it will be more expensive than government shared ownership schemes.
    The only issue I see is that due to the large salary multipliers, stepping up might be a serious problem for a lot of people.
    Originally posted by chappers
    If it were that straightforward, they'd explain it properly on their website. Or at least get their fake MSE members shilling it here to explain it properly.
    • eddddy
    • By eddddy 12th Oct 17, 9:36 AM
    • 5,550 Posts
    • 5,232 Thanks
    eddddy
    Scam written all over it
    Originally posted by csgohan4
    I don't think so it's just shared equity under another guise, downscaled to include individuals. As it's commercial it will be more expensive than government shared ownership schemes.
    Originally posted by chappers
    I don't think it's a scam - and the concept is fine in theory.

    I guess my concerns would be that it's a new unregulated fledgling business and the people running it might be 'lightweight' or 'dreamers' - and/or lack the skills to run a business like this.

    Their business model seems to be that they try to find 2 groups of people:

    1. Investors - who are happy to start by owning, say, 95% of a property, and receive 95% of the market rent.

    2. 'Occupiers' - who are happy to start by owning, say, 5% of a property, and pay 95% of the market rent.

    Plus the 'Occupiers' overpay rent each month, to increase their ownership percentage, and therefore reduce their rent percentage
    .

    Obviously, 'the devil is in the detail'....
    • Has unmortgage really got a waiting list of investors on standby?
    • Who decides what the market rent is on an ongoing basis?
    • Who decides what the market value is on an ongoing basis?
    • What happens if unmortgage go bust?
    • What happens if an investor goes bust?
    • What happens if an occupier cannot pay their rent?
    • Who decides when the property needs maintenance (e.g. repainting)?
    • Who pays for maintenance, insurance etc?
    etc etc

    I would want to go over their contracts with a very fine-toothed comb - and probably want a specialist solicitor to look at it as well.

    FWIW - here are some links:
    http://moneyweek.com/unmortgage-better-than-a-mortgage/
    https://angel.co/unmortgage
    Last edited by eddddy; 12-10-2017 at 9:55 AM.
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