Afforable House

Thrugelmir

It is a loan. The balance of the purchase price will be paid by Chester Council. They will hold a second charge on the property after your main mortgage lender. This will be redeemed at a later date when the house is sold.

Ok. So you buy the property and live in it for 50 years, until it is sold. Chester Council will not want to tie up their money for that period. They will expect you to refinance the "loan", so the can relend the money to another deserving individual.

You need to read the small print of the scheme.

etnies

when it is sold, I have to sell it at 70% ish of the market value, thats the only criteria...

the house has to remain as an "affordable house" forever as part of the affordable housing scheme, it may be a loan to the housing people, but that extra 30% will never affect me...

I've spoke to the estate agents and they guarantee that there is no small print saying this 30% ever has to be repaid

Thrugelmir

If that's the case, a way of getting on the property ladder.

I would suggest you get a mortgage in principle sorted out, plus approval from the Council. Then go to Wimpey's and say you want to exchange and complete in 4 weeks and ask what discount will they give you.

etnies

thanks, they have already agreed to give me a mortgage and the house I've even reserved one (it was £250 but will be knocked off price).. and are even coming tomorrow to confirm mortgage.

I just wanted last minute thoughts as its quite a scary thing being a first time buyer to see what other people would do in this situation, as its not too late to pull out at this point, worst case is I lose £250

Thrugelmir

Best of luck. Hope the transaction goes smoothly.

etnies

Thrugelmir wrote: »

Best of luck. Hope the transaction goes smoothly.

thank you very much