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'Resale price covenant scheme’- am I getting ripped off??
b0bcat_2
Posts: 3 Newbie
Is this really this easy????
I have just put an offer on my first property, which is available (via a housing association) through a scheme called ‘resale price covenant scheme’. Is this a ‘good’ scheme or am I about to waste all my hard earned savings? The scheme works like this, the property is ‘valued’ at £xxxk but is sold at 50% of this price. So I have a ‘mortgage in principle’ for this scheme for £xxk (50% of its market value) minus my hard earned 10% deposit. My offer has been accepted. I will own 100% of the property, but when I decide to sell, the property has to be sold at 50% of its market value. Affordable housing? too good to be true? or am I getting ripped off??? Any advice??? Massive thanks xx
I have just put an offer on my first property, which is available (via a housing association) through a scheme called ‘resale price covenant scheme’. Is this a ‘good’ scheme or am I about to waste all my hard earned savings? The scheme works like this, the property is ‘valued’ at £xxxk but is sold at 50% of this price. So I have a ‘mortgage in principle’ for this scheme for £xxk (50% of its market value) minus my hard earned 10% deposit. My offer has been accepted. I will own 100% of the property, but when I decide to sell, the property has to be sold at 50% of its market value. Affordable housing? too good to be true? or am I getting ripped off??? Any advice??? Massive thanks xx
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Comments
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If you are only paying half the true market value and not renting the other half, you should be able to own the property outright in half the time if you overpay your mortgage.
You are unlikely to get ripped off by a housing association but you should still have a survey and all the usual legal advice. I would want to know who is valuing the property now and who is going to value it when you sell - do you have any say in this? Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️0 -
Hi,
I'm looking at a house under one of these schemes at the moment. Did you go ahead? If so, can you give me any advice? I'm struggling to find anybody that will actually lend under one of these schemes!!
Thanks
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Fantastic deal if the valuations are accurate.0
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