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95% ltv mortgages

DMC75_2
Posts: 216 Forumite
My friend needs a 95% LTV mortage , what are if any best ones out there ?
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Comments
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I'd give a 95% Ltv a wide berth tbh. It'll cost a fortune, have a high IR and there's every chance they'll be in negative equity in a years time.
Keep saving !!"An arrogant and self-righteous Guardian reading tvv@t".
!!!!!! is all that about?0 -
his in a sticky situation he needs to get out of and doesnt want to waste his money on renting , any ideas someone said shared ownership ?0
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Surely buying an asset which is losing value (as most houses are at the moment) is wasting money?!0
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i think renting would be the best way to go, at least for the next 6 months. that way your frined can work out their finances and also see how the market is going / also start looking for properties and the buying process could take 3 months from start to finish0
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Shared ownership - no wucking fay. Avoid like the plague."An arrogant and self-righteous Guardian reading tvv@t".
!!!!!! is all that about?0 -
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Paying interest on a mortgage is a waste of your money. You never see it again. The real waste of money is the difference between the interest you'd pay on the mortgage and the rent you'd pay for an equivalent property.
I bet you'd be suprised at how small that is. In fact you may actually be better off if it's a flat.0 -
Why should they avoid Shared Ownership?? I dont understand why people seem to think these schemes are so evil. Do these people actually know how they work??
I bought SO 3 years ago and it was the best thing i did.
If you're gonna give "advice" like "avoid like the plague", at least give some reason behind your thinking!Mortgage - £37k
Credit Card (A&L) -[STRIKE] £2300 -[/STRIKE] £1200
Santander Credit Card - [STRIKE]£1400[/STRIKE] £1100
[STRIKE]OD - A&L - £1300[/STRIKE] GONE!!!
"I will be debt free, I will be debt free!"0 -
Why should they avoid Shared Ownership?? I dont understand why people seem to think these schemes are so evil. Do these people actually know how they work??
I bought SO 3 years ago and it was the best thing i did.
If you're gonna give "advice" like "avoid like the plague", at least give some reason behind your thinking!
A strange hybrid of renting and owning part of a property you can do nothing with. It is such an inflexible scheme as to be untrue. The TSA (Tenant Services Authority) has concluded only 3% of SO purchases stairgate i.e. buy additional percentages, and they take considerably longer to sell as so few people are interested in them.
You cannot alter it nor rent it out. The Housing Association gains as although they own a percentage of the property they are not responsible for any of the repairs. You as the 'part owner' pay for all repairs you as the 'part tenant' cannot carry out any alterations.
Getting mortgages for them is very difficult as they are higher risk, the service charges are very high.You also do not get all the 'profits' should you be able to sell it."An arrogant and self-righteous Guardian reading tvv@t".
!!!!!! is all that about?0 -
Richardson v Midland Heart confirmed that, in a shared ownership lease, a landlord is entitled to possession for rent arrears because the leaseholder is an assured tenant with no right to a share of the original capital paid.
The case
Ms Richardson had acquired a shared ownership lease of a house in 1995 and paid half its then market value. Eight years later, her husband was sent to prison and she had to leave the property because of threats from her husband’s associates. Although in the past she had received housing benefit to pay the rental element of the lease, she no longer lived at her property as her only or principal home. Midland Heart eventually issued possession proceedings on the basis of rent arrears relying on ground 8. This means that if there are two months worth of rent arrears outstanding at the time of service of the notice of seeking possession and at the final hearing, a final possession order has to be made if sought by the landlord. The court has no discretion to adjourn the hearing or give the leaseholder time to pay. The leaseholder has no ability to pay off the rent and stop any enforcement process the landlord may take once an order has been made. A possession order was therefore made. Ms Richardson brought proceedings and argued that, although the lease had been terminated, she was entitled to the return of her capital payment as she was still entitled to the half beneficial share in the freehold. This argument was dismissed at the court hearing on the basis that the payment she had made at the time of entering into the shared ownership lease had not bought Ms Richardson a half share of the property.
The consequences
Midland Heart voluntarily offered to pay Ms Richardson back her capital investment although not any increase in the value of that investment over the intervening period. This was entirely voluntary and a landlord would be entitled to take all the capital as a windfall payment.
The future
The way that shared ownership leases are currently drafted means that if a leaseholder falls into arrears it could turn out to be very costly. Given the credit crunch and downturn in the economy, as well as the growth in shared ownership leases, this could prove to be a serious problem for leaseholders if they fall into debt. If they don’t sort out payment of their arrears within a relatively short time — that is before the hearing — they then risk losing everything invested. The position as it stands at is not consistent with how the Housing Corporation describes shared ownership in its literature and it gives the impression that the leaseholder buys a share of the property.
Sian Evans, partner, housing litigation, Weightmans
Sian.evans@weightmans.com
http://www.insidehousing.co.uk/story.aspx?storycode=6500016It is nice to see the value of your house going up'' Why ?
Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
If you are planning to upsize the new house will cost more.
If you are planning to downsize your new house will cost more than it should
If you are trying to buy your first house its almost impossible.0
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