flat i am going to see, whats the catch ?

needahome_2

Ive found a flat through an estate agents, which is going for approx £200 below the market rent (looking at similiar flats in the same building).

the rent is £500 pcm as opposed to £700 pcm.

the flat is a city centre new build flat, and the reason it is going so cheap, is that it is being let out by a housing association.

my problem is not the rent,(which is explained by the HA ownership), but the fact that they are willing to rent it to me. i.e. i thought HA's had waiting lists, points awarded for need etc, etc.

however these flats are being targetted at working people, and not those in need.

also the estate agent said they are being offered under some scheme, where you make a commmitment to buy in the future, but are not legally bound it.

what scheme is this ? ive never heard of it ?

he said the qualifying criteria for the scheme, is that you need to earn under £40k a year and to have never owned a home before.

PasturesNew

You're right. A HA with spare property does seem unlikely!

Which town is it in?

PasturesNew

needahome wrote: »

he said the qualifying criteria for the scheme, is that you need to earn under £40k a year and to have never owned a home before.

Ha, sneaky little add on there.... that's to stop people like me renting it and never intending to buy it.

PasturesNew

Sorry for the 3rd posting in a row. I think the biggest issue might be at what price you'd be expected to buy it in the future.

Do you have the right amount of deposit to do that now?
Could you save that deposit in time?

The mortgageability of the flat will depend on its future value.

It might be that come the time you feel either cheesed off that you feel ripped off with a high value, or you feel held over a barrel to buy it because you've been renting it.

needahome_2

PasturesNew wrote: »

Ha, sneaky little add on there.... that's to stop people like me renting it and never intending to buy it.

how ?

i'm planning on renting it and never buying !

needahome_2

PasturesNew wrote: »

Sorry for the 3rd posting in a row. I think the biggest issue might be at what price you'd be expected to buy it in the future.

Do you have the right amount of deposit to do that now?
Could you save that deposit in time?

The mortgageability of the flat will depend on its future value.

It might be that come the time you feel either cheesed off that you feel ripped off with a high value, or you feel held over a barrel to buy it because you've been renting it.

as it is a city centre newbuild i have no intention of buying it, unless it was to come down massively in price.

PasturesNew

needahome wrote: »

how ?

i'm planning on renting it and never buying !

I previouslly owned a house, which I sold and am sitting on a pile of cash. "people like me" would just use it while waiting for prices to drop, then we'd move out and buy something else for cash in a few years. Rather than being people who needed housing now and helping onto the pyramid scheme (er, housing ladder).

Gingernutmeg

Maybe some HA's have excess properties? In the village where my parents live, there are some HA flats and I think out of a block of 15 or so there are three empty at the moment, and they have been for some time. The problem is, I think, that the demand round here is for family properties (2/3 bedrooms) and not one-bed flats, and it's not really a popular area for single people to come and live (not much work, none if you've got no transport). Maybe it's the same there, they've just got an excess of unpopular properties and if they can't fill them, they can offer them on this scheme?

maryotuam

What you need to do is ask for a copy of the terms and conditions of the rental agreement, take it away and read through it thoroughly. Mark out anything youre not sure about and get them to clarify it. Only sign when you are happy that it suits you.

Years ago when my family were young, we lived in housing association accommodation. My husband was working but not on a high wage. They told us they liked to have a mix of tenants (working and not working) because that was much more desirable for everyone.

needahome_2

i found a bit more information, it seems to be some kind of homebuy scheme

Intermediate Rent
This scheme allows you to rent a property at a discounted rate. There are also new schemes currently being introduced which allow you to rent at an intermediate rate for a while with the option to buy at a later date.

http://www.homebuyagents.org.uk/subarticles/homebuyagents.aspx

it says "new schemes currently being intriduced" this sounds like what i am being offered.

anyone any more info on these new schemes ?

needahome_2

have found the details,

the intermediate scheme which is currently running is for key workers, but the new scheme is called "rent to homebuy"

Rent to HomeBuy will be available soon, with the first schemes anticipated to be announced this autumn. Specific information about homes available under the scheme from MHO will be posted on this site as soon as it is available.
Full details are to be confirmed - we will update this page as they emerge. In the meantime, you can download the government paper announcing the new product by clicking on the link to the Communities website below.

http://www.communities.gov.uk/news/corporate/895020

Eligibility terms will be similar to other HomeBuy products, with first time buyers with an annual household income of £60,000 who do not already own a property being eligible to apply.

http://www.mho.co.uk/your-options/rent-to-homebuy