New Build House with Shared Ownership- Help Needed!

LaJaMac

Hi Folks,

This is my first post and I'm hoping you can advise me! We've put a deposit down on a new build house. We're due to complete the missives but not sure whether to take the builders 80/20% home buyers offer. Basically they pay 20%, we mortgage 80%, after ten years or if we move (which ever comes first) we pay their 20% back at the current market value. We would own 100% and don't need to pay them anything during the ten years unless we move or rent the house to someone else. I'm debating whether to stretch to 100% or go with their 80/20. Any thoughts?

L

nicjohnson

Quite a few threads on this - if you search Homebuy or 'shared' ...some positive experiences but the overiding view seems to be that this scheme is being used to prop up inflated houseprices.


Personally I wouldnt go for it, we're in the midst of buying new build with McInerney and even came down a level on the model of house we were buying to avoid the shared equity route.

I just prefer the idea of knowing the house is 100% mine (though mortgaged) and that I'm paying off the mortgage in the most straight forward manner ..esp with the change in Government and the uncertainty this brings. Also worry the shared equity would be really tricky in the event of a sale, esp if theres negitive equity involved...which again there is a real possibilty of while the market levels out

Good luck either way though - enjoy your new home :beer:

brit1234

These homes are usally at least 20% overvalued I would avoid at all costs.

new_home_owner_3

brit1234 wrote: »

These homes are usally at least 20% overvalued I would avoid at all costs.

you might not have a choice, if you want to own your own home you may have to.:(

property.advert

Will they take the hit if it sells under the purchase price, still only receiving 20% ?

With no rent, it is better than some part ownership deals.

Can't you get them to lob 20% off ?