Shared ownership scams

Graham_Devon

Often it's the size of the mortgage thats restrictive.

Say a house is 100k. You'd need a 90k mortgage, minus the deposit.

But on the shared ownership house, if it's 100k, you'd need a 22.5k mortgage, minus the deposit.

Far easier to get the 22.5k mortgage (though you only have a few lenders that will deal with SO), than it is to get a 90k mortgage. Especially if you have current debts, or bad credit.

wymondham

These schemes exist purely for (builders mainly) to sell their overpriced houses. It's interesting though how many FTB's think these schemes are to benefit them...

GDB2222

PasturesNew wrote: »

By the time you get to £125k there are a lot of interesting, characterful houses with lovely features .... and no 'work' needed.

Which area are these PN? Nothing at all round here for 100k.

Really2

Can't you negotiate on SO?

I presume you have to get a valuation? If it is the SO's mortgage company would it not be worth getting a seperate valuation as a bargaining tool.

Graham_Devon

Really2 wrote: »

Can't you negotiate on SO?

I presume you have to get a valuation? If it is the SO's mortgage company would it not be worth getting a seperate valuation as a bargaining tool.

No, you can't.

Really2

Graham_Devon wrote: »

No, you can't.

But if it was over valued surely they could get done for fraud?

tomstickland

I went to look at a newbuild a few months ago. They only wanted Homebuy direct and the salesman told me that they loved it "because we get paid to build houses".

Shared Ownership has always looked like a bad idea, and seems to be there so the big developers can palm off overpriced tat onto unsuspecting buyers.

the_flying_pig

they don't deserve to 'sell' one at those prices.

the sad thing is that any they do sell will be to the very most vulnerable/gullible.

macaque_2

Chris2685 wrote: »

Yet again I have seen some more shared ownership scams.

2 Bedroom Terraced house in South East (Iver Heath, near Slough)
25% valued at 89,950 (100%=£359800)


2 Bedroom Terraced bungalow in South East (Iver Heath, near Slough)
50% valued at 150,000 (100%=£300,000)




Now, looking at houses nearby and the average prices, they are no where near this price. So why is it that just because it is 'shared equity' the price seems to be justified to be higher?
Similar properties nearby seem to be valued at around £250,000 - £300,000 at the VERY top end for a 2 bed.

This map shows more properties around there.
Just over the back of those 2, you can pick up a 3 bed semi for 335k, and to be fair it looks at least 50% bigger, if not more, than the 2 bed's do.

So, any ideas WHY the price on these 2 are so much higher than neighbouring properties, or is it just that they're shared equity, more people can "afford" them?


Hope this is an interesting topic for you to consider after your weekend breaks

The 70% club have reviewed this post and awarded it a silver medal in the category of 'Scam Busters'.

nearlynew

What would someone have to do to earn a gold medal macaque?