Rent to Homebuy questions

AliceBanned

Hi

I'm a housing association tenant and went to see "rent to homebuy" properties this afternoon. I've seen a few others recently but wasn't necessarily wanting to move straight away; just seeing what's available. Unfortunately I fell for one of the flats:cool:. I'm used to looking in a more expensive area and this flat is in Bedford which is still within commuting distance to my work in London but only just. I know parts of Bedford aren't great but it has good transport links and is practical etc, and the flat is great and on a lovely quiet street, a totally new development. I'm in a quandary mainly about the shared ownership side. I can afford to buy 50% of a two bed flat (might as well as the one bed flats are only 15k cheaper), it is a double fronted house with one flat above it, bay windows and looks amazing. To me (I've always lived in slightly crummy flats) it is quite special but I don't want my heart to be making the decision. It feels like home but is in the wrong area potentially, and the price is not negotiable but I was told was valuated "independently" at the time of buying shares (ie by staircasing). I may only ever be able to afford about 70% of it though, depending on my future salary; it is valued at £135k and I earn £26k. But it's gorgeous and I find hard to see that it's overpriced as many people say shared ownership places can be. Any opinions would be appreciated; in particular I'm concerned about selling shares at say two years down the line if I decide I want to move nearer London again. Sorry it's all a bit garbled but I'm a bit emotional and didn't expect to want to move until i saw this flat. Oh and I was told I get more or less first refusal, so the one I like is unique and everyone's favourite, but I might be offered it. I don't think this was hard sell; it was just fact; all the flats are identical and there is clearly one so much more attractive despite being the same price as the others.

Cannon_Fodder

AliceBanned wrote: »

I'm used to looking in a more expensive area and this flat is in Bedford which is still within commuting distance to my work in London but only just....all the flats are identical and there is clearly one so much more attractive despite being the same price as the others...

Don't think you know if you are coming or going.

Sit down and take a deep breath!

Either they are all identical, or there is something different about 1 to make it more attractive.

Which is it ?!?


Going up to what sounds like the top end of your budget, while being further out for the commute does not seem the correct balance.

Paying more to be closer would make more sense.

AliceBanned

Cannon_Fodder wrote: »

Don't think you know if you are coming or going.

Sit down and take a deep breath!

Either they are all identical, or there is something different about 1 to make it more attractive.

Which is it ?!?


Going up to what sounds like the top end of your budget, while being further out for the commute does not seem the correct balance.

Paying more to be closer would make more sense.

It is difficult to know whether I'm coming or going when I'm making all these decisions alone, which is why I post on here for advice!

Hi Cannon Fodder. Thanks for this and your other response. I see what you mean - one of the flats has much better aspects due to its position, and looks more impressive and feels more homely because it has two large bay windows. None of the others have this. I know now it sounds silly. But it just feels so much better because of the positioning and the windows, it has fewer immediate neighbours as well. The lady from the HA also told me that was everyone's favourite so she has made me feel it is even more special and that i need to grab it why I can. I'm worried about feeling this way, but I do. It's difficult to explain clearly on here. Yes I need to know more about Bedford, but I know it has problems in some areas and some very rough parts. What can I do? I don't have the money to live in or near London so I'm resorting to Bedford. It's a depressing situation but I like the actual flat and that part of Bedford. If I move nearer work the flats are outside my budget. If I stay where I am in Hitchin, Herts they are just within my budget but there are no shared ownership properties and I don't yet have a deposit, well not much anyway. Thanks for responding. I am a bit confused and panicky about the whole thing, I agree. But they are scarey decisions.

lynzpower

Hang on, rent to homebuy doesnt , as far as Im aware tie you into buying it, does it? The incentive to buy it is that part of the rental amount goes towards a "deposit" although if you dont like the area or whatever, you can move out with no penalty.

There is lots of rent to homebuy in london though, or there was a few months ago when I was looking at it.

Its quite a good deal I think. If you choose the right place, but if you dont , there is no major penalty.

lynzpower

Ps I bought the first shared ownership flat I viewed when I was seriously looking ( I saw one about a year before)

I sold it in peak makret though and I think there are justifiable concerns about selling your share, who knows what the climate will be like in a couple of years.

Its a bit confusing- is it
rent to homebuy first
then shared ownership when you come to buy ( IF) you want to in 2 years?

AliceBanned

lynzpower wrote: »

Ps I bought the first shared ownership flat I viewed when I was seriously looking ( I saw one about a year before)

I sold it in peak makret though and I think there are justifiable concerns about selling your share, who knows what the climate will be like in a couple of years.

Its a bit confusing- is it
rent to homebuy first
then shared ownership when you come to buy ( IF) you want to in 2 years?

Hi lynzpower and thanks for replying. Yes it is the almost the same as shared ownership, the only difference is the option to rent first for up to five years at 80% of private rental prices. There is the option to buy from 25% from the very beginning of the tenancy and then to buy more when ready ("staircasing"). This can be done at any time, although the tenancy ends after five years unless at least 25% has been bought. I know there are some in London but I would like to own a larger chunk and prefer to live outside London and commute in anyway as I prefer the lifestyle outside London. Also I am giving up an assured shorthold tenancy which I have at present, if I go ahead which is why they are sort of giving me first refusal, or so they say ie the housing assoc).