We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Sequence Homes - 25% share in sold house
racheyg
Posts: 928 Forumite
House on the market. Estate agent phoned today with a new deal that Sequence Homes have come up with. The general idea is that:
If you have at least 25% equity in your home, a purchaser can pay 75% for the property, and will owe you the other 25% for a max period of 10 years, after which time (if they haven't paid) the house will be revalued and you get 25% of the value at that time. The purchaser, within those 10 years, can decide when to pay you back, as long as it is a lump sum, so in theory they could decide to pay you after year 1, when the house is valued less.
I find all kinds of problems with this - what if they don't pay? Who is responsible? What if they want to sell? etc etc.
Anyone else heard of this? Apparently it's big in America?
If you have at least 25% equity in your home, a purchaser can pay 75% for the property, and will owe you the other 25% for a max period of 10 years, after which time (if they haven't paid) the house will be revalued and you get 25% of the value at that time. The purchaser, within those 10 years, can decide when to pay you back, as long as it is a lump sum, so in theory they could decide to pay you after year 1, when the house is valued less.
I find all kinds of problems with this - what if they don't pay? Who is responsible? What if they want to sell? etc etc.
Anyone else heard of this? Apparently it's big in America?
Thought processes can be managed positively, so that they help you to achieve what you want, rather than hindering your judgement.
0
Comments
-
you are paying full price for a house were you should be getting 25% off the price...its a charter for keeping house prices high and ripping off the financially illiterate...It is nice to see the value of your house going up'' Why ?
Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
If you are planning to upsize the new house will cost more.
If you are planning to downsize your new house will cost more than it should
If you are trying to buy your first house its almost impossible.0 -
Heard of it....its the biggest rip off going.......you pay full price (you think your only paying 75% of its worth) but only own 75% of it and have upto tens years to pay off the rest....
Its not new and certainly not just in America.....Its to pull in sucker FTB and people who can't offord to buy a house (so making them think they can)
Leave well aloneIf you find yourself in a fair fight, then you have failed to plan properly
I've only ever been wrong once! and that was when I thought I was wrong but I was right0 -
LOL
Does anyone want to invest in 25% of a mars bar? I'm going to have to resort to raffling it if no one wants it.0 -
This is a deal for developers, yet your posting sounds like your EA is suggesting you (an individual) do this with a complete stranger.
It would be difficult for a bank to entertain this. It is very high risk. It won't work.
Your EA is mad/desperate/thick if I read it right ....0 -
That's what I thought - I can't see how they can do it really. Who would agree to such a deal!Thought processes can be managed positively, so that they help you to achieve what you want, rather than hindering your judgement.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.3K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.2K Work, Benefits & Business
- 603.9K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards