Can anyone explain the benefit of a Part Buy/Rent scheme?

Gazump

Is it only for people who cannot put up the initial deposit for a decent mortgage?

Sounds you end up paying more in the long run especially since you have to pay rent + mortage and you are responsible for repairts, bills and service charge etc.

Blacksheep1979

It's to keep prices nice and artificially high so that the property market doesn't fall to a sensible level. That's about the only current benefit of it.

Pssst

I wouldnt advise anyone to get involved in such schemes. They simply hold the price of the property artificially high instead of being priced at market rates.

tek-monkey

All the ones round here I've seen seem to be priced at around 65% of the value but you only own 50%!

LandyAndy

Gazump wrote: »

Is it only for people who cannot put up the initial deposit for a decent mortgage?

Sounds you end up paying more in the long run especially since you have to pay rent + mortage and you are responsible for repairts, bills and service charge etc.

Sounds about right but try telling any number of people on here that:rolleyes:.

brit1234

Its a complete con for building companies to keep there new builds overpriced. They over charge on the normal properties but have to sell a certain percentage as affordable. They came up with shared ownership to get round it. The full price goes on the land registry distorting the figures while the owner gets a small part of the property and payes a fourtune in additional charges.

A complete con which you will have dificulty selling afterwards.

Janec2

the full price doesnt go on land registry.
We've just checked that as we beleived the house we are interested in was overpriced (50 percent s/o property)
We checked what the house next door went for on the exact same scheme from same HA. The land registry amount was only the 50 percent amount. AND clearly MUCH lower than the asking price for the house we want :mad:


ETA : Shared Ownership and Shared Equity are different though. Maybe S/E distort the Land registry figures

Gazump

Thats a bit scary! Seems like a lot of people these days are buying into the scheme.

Slightly unrelated. If I was buying an ex HA Shared Ownership home, is there anything I should be aware of?

MunnyBoiler

To answer the original question, these schemes are a way are getting people on the home ownership ladder, who cannot afford a mortgage if they were buying a property on a 100% basis.

After buying a percentage of the property, ie 50%, the buyer can then go on to buy further shares until they own the property 100%. However I believe that with some schemes, you are restricted to % you can own and 100% ownership isn't allowed.

Such home ownership schemes are ok for some buyers but you do need to do your research into all of the costs and risks, which you need to do anyway when you want to own your own home.

Blacksheep1979

MunnyBoiler wrote: »

To answer the original question, these schemes are a way are getting people on the home ownership ladder, who cannot afford a mortgage if they were buying a property on a 100% basis.

And they should be able to afford 100% if properties weren't continuously inflated by silly schemes like this.

MunnyBoiler wrote: »

After buying a percentage of the property, ie 50%, the buyer can then go on to buy further shares until they own the property 100%. However I believe that with some schemes, you are restricted to % you can own and 100% ownership isn't allowed.

Such home ownership schemes are ok for some buyers but you do need to do your research into all of the costs and risks, which you need to do anyway when you want to own your own home.

There's plenty of risks/issues around being able to rent out and even sell on - these things are a total con.

C_Mababejive

Gazump wrote: »

Thats a bit scary! Seems like a lot of people these days are buying into the scheme.

Slightly unrelated. If I was buying an ex HA Shared Ownership home, is there anything I should be aware of?

Chavs and social tenants next door who laze around on the dole all day,have their rent paid for them whilst you pay a mortgage,whilst making your life hell?