75% ownership

hidchere

seriosly condidering a 75% deal, you buy 75% worth of the property and the other 25% being owned by the housebuilder for 10 years, first 5 years is interest free, the next 5, 3% then after that we need to pay the final 25%of what its worth at that time... they pay stamp duty, arrangement fee, legal fee and the survey fee. and we dont need to pay a deposit.

anyone ever done this?

they say they wont budge much on price (so far tried 10% off and 5%, nothing)

its a newbuild in town center, theres 280 other properties.

if anyone has any thoughts or information can you let me know?

oh and i have to go through thier broker, who knows how much we can afford? do you think they are telling the building comany? or is that illegal?

opinions4u

What happens if you can't afford to buy the final 25%? How is the value of that last 25% determined at the time of purchase?

You also get another load of legal costs when you do come to buy the final chunk.

What happens if you want to sell before then? Who will buy the 75% off you knowing they have to buy a further 25% off somebody else later on?

I wouldn't touch it with a barge pole - but others would.

A broker has to retain your confidentiality, unless you sign something giving away that right.

hidchere

its 100% yours... you pay the 25% after its sold whenever that is (b4 10 years) if you cant pay after 10 years you pay more interest in a 5 year buffer zone, then they force you to sell.

wigglebeena

Why bother - give it a year and you'll be paying 75% of the current price for the whole property.

Or are you in a rush?

hidchere

its brand new with flooring,electric oven, light fittings. gas hob, fridge freezer and dishwasher all thrown in.

drrobert

Don't touch any shared ownership deal! Shared ownership was just an attempt try to keep the housing bubble going for a little longer, and was always doomed to failure.

I strongly recommend that you wait for a year or two and save up a larger house deposit. You will then be able to buy a similar property (without 'shared ownership') for at least 25% less than the current full asking price.

supermonkey

it is basically almost shared ownership....except that normally you would have to pay rent on the remaining share.

You dont so you could look at this very positively.

Whether it's a good idea really depends on whether you can afford it. It's important to check whether the value of the other 25% will always be based on the current price, or original price (ie if property goes up will the you have to pay more to but the remaining amount?)

If affordable you could put money aside in savings to plan to buy the remaining share (a bit like having an interest only mortgage and savings to pay off the capitol)

hidchere

what were thinking of going ahead with is a 35 year interest and capital mortgage then after 10 years remortgaging it to pay the rest off.... is this viable? or am i assuming i can do this without actually knowing?

Wutang_2

hidchere wrote: »

what were thinking of going ahead with is a 35 year interest and capital mortgage then after 10 years remortgaging it to pay the rest off.... is this viable? or am i assuming i can do this without actually knowing?

Now that sounds like a plan!!!

Lanz81

well i've just bought a new build on th 75% and i couldnt be happier! I am going to save alongside the mortgage but my longterm plan is to sell when the 10 years is up and (fingers crossed) i will not be in negative equity and pay them back then.

I am in this to buy a home for the future and not for an investment which some of you may disagree with but that's how i think!

Also I got 15k off the asking price.

Lanz81

or like your plan i might remortagage after 10 years!

for for it i say especially as you dont have to have a deposit.

we are so happy that we've done it especially with the patter of tiny feet on the way.

x