75-25 Fairview new homes????

Crazystar

Hello All,

Fairview has come up with a 75-25(75% buyer, 25% fairview ownership) scheme for thier new homes at farnborough and i was wondering how good is this scheme. They say its a 10 year scheme and after that buyer needs to buy back the 25% or can sell the house and the share will be again divided into 75-25. Can you guys comment on this scheme? whether it is good to buy in this or this might have any hidden costs or loop holes...????

Thanks
SMY

MX5huggy

The not so hidden cost will be the price of the property which will be say 25% above market rate. Oh and the rent you will have to pay on the 25%.

At the end of the 10years do you have to pay or move what if you have no money but can't move either?

Richard_Webster

I assume that they won't want any rent on their "share".

The price might be inflated a bit - so watch that - advice always is to look at values of similar 5-20 year old properties in the area. In 10 years time the relative newness of your house won't be relevant at all.

Over 10 years house prices might rise - historically this has been the case - but that may not be true in the future. However in the short term this probably won't happen - it will be the other way. So say you buy for £160K - with £120K mortgage. In 3 years time you want to sell and house worth £140K. Builder will want his 25% (£35K) paid but that leaves only £105K to pay off £120K mortgage!

Crazystar

Thanks guys for your kind replies...I checked the prices of similar flats in this area and fairviews price is slightly more....The only advantage i see in this scheme is i dont have pay any deposit to get the mortgage for 75% share and that 25% share of fairview would be a interest free loan to me for 10 years...This looks to be a very good option to buy a house without a deposit but considering the market downturn and fear of going into negative equity in future makes me to think that renting is a cool option for this time even thought rents are sky high.....confused !!!

harrylarry

Beware of this company. Deals such as 'Flying Start' are not worth the 'contracts'? they are written on. Check their website carefully for disclaimers. Their Customer Charter means nothing. They pray on first time buyers with phoney yearly rent back deals, and will sell your home beneath you if a cash buyer comes along.

Mini_Bear

Many of the building firms offering these 75-25% schemes may also sell off a lot of the properties to local housing authorities. This may devalue your property further (relative to homes in established estates who do not hav a % of social housing). There is nothing wrong with the majority of LHA occupants but if i was buying a flat as opposed to a house i would be more wary due to the closer proximity.

norman987

I will never ever recommend FairView developer. They don't fulfil their commitments, I reserved the flat on flying start in Croydon on 11 April. After a week i was told that we have increased the prices and can't sell on old prices. I agreed on the new price (that was £ 5000 higher) and now in May i got the response that we are not offering flying start

Blacksheep1979

Please don't go down these shared ownership schemes - they're only around as houses are overpriced. Once upon a time you'd have been able to afford that house 100% on your own and playing into these companies hands by going into shared ownership only keeps these inflated prices.

liam4murray

I suggest you take and everyone else takes their business elsewhere. I have brought a fairview property and live there now and believe me we made a big mistake. Fairview are probably the worst company i've had dealings with, they do not care about anyone and the only thing that comes first is money, they just seem to do anything for money and do not care about the people buying a place. they use cheap materials to build the properties, bad customer service and many, many other problems. Please do not buy from this company, im sure you will regret it.

Gwhiz

Holy thread resurrection, Batman!

PasturesNew

What happened in the 90s with these schemes was that people had to buy the remaining portion in X years' time - and what happened was that in X years' time they weren't able to raise the money needed.