newbuild homebuy....help needed please

Bargain_Rzl

mailmannz wrote: »

Can you walk away from your property if you wanted to?

Not without selling the portion I own...

What happens to the 60% you dont own?

It belongs to the HA, and I simply continue to pay rent on it (with increases linked to inflation) until such time as I might decide to buy some or all of it. The best time to choose to buy more is when values are low, because the purchase price will depend upon a current valuation.

Can you sell your 40% to a someone else?

Yes. It has to be valued, then offered through the HA first in case there are interested buyers. If no interest through the HA, I can offer it on the open market. The buyer would be taking on the same portion and the same lease terms as I currently have.

mailmannz

So who makes all the calls then if an offer to buy comes in? Is that made by you or the housing association?

Mailman

Bargain_Rzl

I'm not sure I understand the question, but I believe that if a buyer were found through the HA, much of the admin would be on the HA's side.

I have no intention of selling any time soon, and my focus for now is reducing my mortgage as quickly as possible.

This is my HA's FAQs:
http://www.shho.org.uk/faqs.asp

mailmannz

Sorry to be a pain, I just dont see you being better off with this scheme over shared equity (where you dont pay rent on the bit owned by the developer, which is then valued on the value of the house when you sell).

I can see shared ownership having its place, especially for first time buyers...but still think shared equity works better for the first time buyer (especially when the value is based on what Halifax will lend).

Mailman

Bargain_Rzl

Firstly, I don't believe shared equity was available in my area at the time, at least not to non-keyworkers.

Secondly, my starting point for buying my flat was not "I need an affordable home, now let's see what schemes are out there". It was seeing an ad for a specific flat in a specific development, which I basically fell in love with on sight, and which worked out very well for my circumstances. The comparison of shared equity and part buy/part rent didn't even come into it.

And the result has been that I have spent the past two years living in a flat I love, in an area I had wanted to move to for ages, for a reasonable price. It just happened to be something that worked/works for me - which is what I've always said.

mailmannz

I think you nailed the problem on the head with shared equity. Its only available if developers make it available...whereas with shared ownership I think you get a price you can work on for any property (assuming the Government makes money available that is).

Regards

Mailman