One default - shared ownership - Joint Equity - HELP

brit1234

Trudie66 wrote: »

I've been an owner partner with Joint Equity for over two years. They are a professional organisation and it is not a scam.

You may be a profesinal organisation but that does not depart from schemes like yours support artifically high house prices. Its a way people can be caught up in paying more for a property than if these schemes did not exist.

This whole property bubble was caused by banks lending too much through stupid schemes, national interest rates being kept to low, land registry fraud and mortgage fraud.

Now self cert (liar loans) are being got rid of, the FSA is now looking at interest only, Mortgage and landregisty fraud is being clamped down. Multiples of salaries reduced and deposits increased.

The whole finacing system that gave us this unsustainable housing bubble is being taken away.

The next pin to look at is shared owenership and equity which builders are using to keep prices high. They are a scam, joint equity can you say why they are not>

starxtrouble

As far as I am aware (am currently looking into using Shared Equity UK) you can buy any house you want (as long as the investment partner agrees and of course you can get a mortgage for your share). So you can buy anything on the open market and dont have to go for a new build. So how is this keeping the market inflated?

robin_banks

I have to say I'm deepy anti any form of shared ownership/equity.

Own or rent but not some weired hybrid of the two.

Muhasib

from Brit1234 :

Shared Equity

1. Designed to make people pay over inflated prices above bank lending criteria
2. You have to find the extra money for 10 years time, it will always be over you head.
3. Big service charge agian with often big parking costs

1. If the alternative is moving on every 6 months or so on AST's then you may well think its worth it for quality of life, anyway the homebuy equity loan is interest free for 5 years and then it starts at 1.75% rising at RPI +1% of RPI so the rate between year 6-10 can't be considered excessive. Also some properties are being valued at the same as the marketed price.

2. Not sure if item 2 is correct as there is nothing in the HomeBuy Direct scheme about needing to pay back in 10 years, it looks like you can keep the share as it is and then if you sell the Homebuy partners get their share of the proceeds as well - of course the aim is that the owner will have built up some equity by then for their next purchase

Regarding 3 the schemes included don't necessarily have large service charges or big parking costs (or any parking costs), as with every property purchase just check this out beforehand so buyer beware.

What you didn't point out as a drawback for buyers is the admin process for HBD which can be totally inflexible and grind to a halt for weeks without any apparent progress, that I would consider to be a more effective criticism than your quoted 3 points.