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Shared equity schemes -are they regulated?
zzzLazyDaisy
Posts: 12,497 Forumite
I just have to say how worried I am for all the ftb's out there who might be reeled in by these schemes. In some cases it is little more than a scam (though I am sure there are some genuine schemes out there).
I have been looking at buying a place for my son to live in, and the number of 'bargains' that crop up on searches that turn out to be shared equity is scary.
The reason it is scary is that while the 50% is less than other similar properties (obviously, you might say) it is nowhere near 50% of the purchase price of those other properties. Usually by the time the cost is grossed up to 100% the cost of these houses is 25% - 30% more than a comparable house bought outright. But the buyer has to pay not only a mortgage but also a rent which will inevitable increase over time.
I do know of housing association schemes which seem worth while and reasonably fair, at least the buyer gets security which isn;t always the case in the private rented sector. But some of these deals really seem to be unfair.
Are these schemes regulated??
I have been looking at buying a place for my son to live in, and the number of 'bargains' that crop up on searches that turn out to be shared equity is scary.
The reason it is scary is that while the 50% is less than other similar properties (obviously, you might say) it is nowhere near 50% of the purchase price of those other properties. Usually by the time the cost is grossed up to 100% the cost of these houses is 25% - 30% more than a comparable house bought outright. But the buyer has to pay not only a mortgage but also a rent which will inevitable increase over time.
I do know of housing association schemes which seem worth while and reasonably fair, at least the buyer gets security which isn;t always the case in the private rented sector. But some of these deals really seem to be unfair.
Are these schemes regulated??
I'm a retired employment solicitor. Hopefully some of my comments might be useful, but they are only my opinion and not intended as legal advice.
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