Rent to Buy Scheme

morwok

Hi,

I was wondering if anyone had any thoughts on these schemes.

I am a FTB in London and looking to move as my lease runs out at the end of February and ideally into a one bed flat.

This scheme the rent would be £850-£950 a month for 3 years for a one bed new build in Deptford with final purchase price of £205K.

This seems high to me (given the area) but a short commute to London Bridge and at the end of 3 years then I would have a £30K deposit plus the initial 2% option. Hopefully I will go and see the estate agent to find some more shortly and see if there is any room for manoeuvre on the purchase price which I would hope (but doubt it).

Given the current market and I supopse no one knows where it would be in 3 years I would appreciate anyones thoughts or if anybody else ahs done a scheme like this.

Many thanks

emma_jane1987

bump as i'm thinking about this type of scheme as well.

beingjdc

Mental. £205k for a 1-bed in Deptford?

Do you want a 2-bed 2-bath in Bermondsey?

You can walk to London Bridge, and it's less than £205k.

zone

Is this the shared ownership type scheme? They are a scam.

morwok

zone wrote: »

Is this the shared ownership type scheme? They are a scam.

It's not the same as shared ownership as at the end of 3 years your mortgage would be for 100%

beingjdc wrote: »

Mental. £205k for a 1-bed in Deptford?

Do you want a 2-bed 2-bath in Bermondsey?

You can walk to London Bridge, and it's less than £205k.

I know it overpriced but being a new build this is to be expected and obviously the price is inflated for this scheme. My hope is that I could agree a lower purchase price maybe £175-£185K.

I would love to buy a house outright the problem at the moment is the deposit as I only have about £12K at the moment. Even being overpriced at the end of 3 years you would have accumulated over £30K deposit plus whatver I had saved by then as well.

I'm fed up renting and want to live by myself so this option would be cheaper than renting on my own??

beingjdc

morwok wrote: »

I'm fed up renting and want to live by myself so this option would be cheaper than renting on my own??

It would? Maybe, and obviously depends more on how close to fair value you get the flat when you buy it, rather than the cashflow, but 850-950 a month gets you somewhere fairly acceptable in South-East London, in my experience!

http://www.rightmove.co.uk/property-to-rent/property-11520588.html
http://www.rightmove.co.uk/property-to-rent/property-20643526.html

(couple of places near me, just a for instance)

Though if interest rates go back to their recent average, and you get it for £175k with a £30k deposit, you'd be paying £725 interest on your mortgage, so a bit cheaper, but I bet there's a ground rent and service charge too.