Buying on the EasyBuy scheme offered by Crest Nicholson

Incisor

SINDYGIRL wrote: »

crest nicholson easy buy isnt shared ownereship though ...is it??

Just looked at it. You may be right. But it makes little difference, they will want their 25% paying back in full when you sell or at some stage. The buyer takes 100% of any losses - and if you take into account that the 100% price overvalues the property, you are taking a hit.

I don't know for a fact but I reckon that the developer sell on the 25% share [say £25,000 on a £100,000 deal], for probably 70% [£17,500] to a finance house. Which would mean that the developer could sell 100% to the buyer for £92,500. But buyer of 75% share owes £100,000 on a property worth £92,500. Instant negative equity.

SouthCoast

A local paper has stated that properties in Worthing have risen by 2.2% in the past year.

Try this for BN11:

http://www.home.co.uk/guides/house_prices_report.htm?location=bn11&startmonth=06&startyear=2007&endmonth=06&endyear=2008

OldBloke_3

Hi Guys, My step daughter is considering the easybuy scheme so I am most anxious so she doesnt make a mistake.

I can see what might be an advantage to this scheme, but shoot me if I'm wrong!

The 25% part of the loan is a secured loan, covered by a 2nd mortgage on the property.

In the event that property prices spiral downwards, it looks like the buyer can walk away and just give the keys back, with no further liability as the total purchase was covered by secured loans.

If this is right there is no risk. I'm waiting to get slaughtered here!

ad9898_3

mewbie wrote: »

Friend... it is no longer a ladder. No one expects house prices to rise, they expect them to fall. Stay off the 'ladder' if you can, until things stabilise.

mewbie is right, the property "ladder" no longer exists, I'm not sure it ever did to be honest, now it is the property mineshaft.

In fact what a great idea, I may start a new show call "Property Mineshaft", with the sub-text, "buy now and be buried for the next 50 years". Does anyone think Beenie might be interested in a career change ?

wymondham

OldBloke wrote: »

Hi Guys, My step daughter is considering the easybuy scheme so I am most anxious so she doesnt make a mistake.

I can see what might be an advantage to this scheme, but shoot me if I'm wrong!

The 25% part of the loan is a secured loan, covered by a 2nd mortgage on the property.

In the event that property prices spiral downwards, it looks like the buyer can walk away and just give the keys back, with no further liability as the total purchase was covered by secured loans.

If this is right there is no risk. I'm waiting to get slaughtered here!

I can't fathom why anyone is even considering buying at present, especially with ANY scheme. These schemes allow the house to be sold, not to allow the buyer any special favours/benefits or a painless easy route onto the 'ladder' etc. If you can't afford a house without a scheme, then you can't afford a house ..... yet!

mummytofour

There are brand new flats in 2 blocks close to Angmering station. I drove past the other day and noticed that the entrance gates are now chained shut! They are on the market for 180k. I am just waiting for the council to take them over, like in Rustington by the way thos flats are very nice.

If this situation were to carry on just think we could all end up with nice new council places at a fraction of the private rental prices.

Dont buy right wait for the market to hit rock bottom then just as it starts to rise nip in there. At least with renting if you loose your job you will get housing benefit.

bluejake

I think you have got accept that some people are just thick and there is no helping them. That any first time buyer would want to buy a new build flat now - on a 75% equity [strike]scam[/strike] scheme! - is insane. Don't they read the papers or watch the news? Probably not.

They have seen something shiny and new and they want it and they want to bury their head in the sand rather than think through the financial consequences.

Sound advice has been given on this thread but many people cannot learn from the mistakes of others they need to feel pain themselves to learn a lesson. And pain is what they are going to get and plenty of time stuck in a financial mess to contemplate their stupidity.

Trollfever

If this situation were to carry on just think we could all end up with nice new council places at a fraction of the private rental prices.

Arun District Council has major problems due to the shortage of social housing .................................

OldBloke_3

My idea of handing the keys back and walking away would not work very well.
I now understand that the the buyer would still be resonsible for the debt. So as you hand back the keys you would have to arrange your own bankruptcy. Not good.

SouthCoast

Update.

Property-Bee indicates that Crest Nicholson are starting to reduce the asking prices on this Worthing development.