House Experts - is this dodgy?

Doozergirl

We had two houses about 800 yards from that house. As Harborne goes, those are the cheapest houses you'll find of that size anywhere near the town centre.

The inside of that house is almost identical to ours. At the peak of the market they'd have been £235,000. The price at £190,000 is realistic I guess.

All that other stuff just does my head in. It's BS as far as I'm concerned. There is no contract of sale, therefore you're giving a landlord a £10,000 deposit to rent somewhere. They incur the cost of owning the property which your rent covers. Your rent is no way going towards a deposit - we all have the cost of living and the rent has to cover the interest element of a loan - it cannot simply pay off the capital and nothing else.

The asking price of the house is sensible, not ridiculously overinflated that it might somehow work out for the landlord to sell to you at an overinflated price. The rent is absolutely spot on for that house in that area, I know!

It simply can't work the way they say, I think they're just getting a fat deposit from you, what they think might be a commited tenant and they're convincing you to pay for the upkeep of the property for as long as it suits.

There is no contract of sale, therefore how do they guarantee your 'deposit'?

franklee

I agree with Doozergirl.

What happens to the 10K deposit if you don't buy?

If all the rent is doing towards the buyers deposit, how is the finance paid for, someone needs a return on the 190K. If the seller has a mortgage loan how is the interest on that paid. If they own the house outright why don't they want a return on the money invested while the property is rented out?

I reckon it's just a way to get a committed tenant plus 10K cash, hopefully from a tenant who can never afford to buy.

What happens if the seller defaults in any way?

It's bonkers.

lynzpower

franklee wrote: »

I agree with Doozergirl.

What happens to the 10K deposit if you don't buy?

If all the rent is doing towards the buyers deposit, how is the finance paid for, someone needs a return on the 190K. If the seller has a mortgage loan how is the interest on that paid. If they own the house outright why don't they want a return on the money invested while the property is rented out? it isnt franklee. Well it certainly isnt designed to be. I dont think they bank on you presenting 1k plus a week. this\ ly deal is clearly created for the desperate & skint. I wo9uld imagine there would definately be a top limit on what they would match. If you bank 1k over and above the normal rent, than thier rental income wouldnt even cover that, let alone the 2 x 50. 0dd quid.

I reckon it's just a way to get a committed tenant plus 10K cash, hopefully from a tenant who can never afford to buy. ( im sure but is there a loophole for moneysavers

What happens if the seller defaults in any way? same as on any other AST, you can get evicted OR it gets paid out of this ere "deposit"

It's bonkers.

As I understand it, there is no option for you NOT to buy. I dont think you can choose not to buy it. Which is a shame as it sounds like a good savings plan!!

ON other housing association schemes, there is, rent to homebuy, that the deposit gets saved in the same way, while renting, BUT you dont get the lenders val until the 3rd year, Id imagine same as this.