Barratt Homes - Shared Equity?

murphyxx

I am possibly looking into purchasing a new build with Barratts in Edinburgh......However it will have to be on shared equity.

I would rather not go down this route but at the moment this seems to be our only chance to get onto the property ladder. We don't want to waste money renting and it will take us a long time yet to save up a large enough deposit.

I'm looking for information from people that have bought a home from Barratts or even went down the shared equity route as well?

I know there can always be some pitfalls with new builds so anyone got any good or bad stories to tell? Also what are Barratt homes usually like... good quality or not so good?

Any information / advice appreciated.

murphyxx

No one got any info ??

brit1234

Barratts are known for poor quality and small dimensions. Shared equity means they overcharge you an extra 20% which you have to pay back in say 10 years. Complete rip off.

House prices are crashing again, better off saving and buying at a decent price later.

myhouse_2

With shared equity, you're just half renting instead of fully renting. I'd avoid like the plague - it's a last gasp way of builders to get rid of their stock at a high price.
Anyway, renting is hardly a waste of money - it allows you flexibility and low risk. When prices are falling it's owning a house that is a waste of money. Normally I might sympathise with you trying to get on the ladder, but you've chosen the worst possible time.

murphyxx

Buying a house is hardly a waste of money...........

House prices may be falling but that doesn't change the fact that people want to own their own homes and start families so I don't see it as a complete waste of money unless your only buying a home to sell it on to make money..... which i'm not.

At the end of the day im trying to take the next step in life and unfortunately that time is now... you can't always plan when the times right... and I don't think things are going to change on the housing market for a long time, so will just have to deal with it as it is.

I do see renting a waste of money because:

1. I can do very little if anything to the house
2. I'd be paying as much in rent as I would be on a mortgage
3. If I rent I won't ever be able to save up for a deposit because all my income will be going on a house that I will never own.
The list goes on...

Everyone has different opinions so im afraid as much as I don't want to go down the shared equity route when mortgage lending is so tough, it may be my only option so I was just looking for advice from people that had bought homes from this company.

G_M

Do a search on 'shared equity'. There have been horror stories on here of people trying to sell 'their' shared equity home. Difficulty finding buyers; admin costs imposed by the SE partner; unfavourable valuations by the partner;

You don't fully own the property;
You lose the flexibility of renting;
You have horrendous extra costs;
You can't move;
.........

Barratts? - I sympathise. When your choices are limited then you have to look at companies like Barratts.....

brit1234

murphyxx wrote: »

Buying a house is hardly a waste of money...........

House prices may be falling but that doesn't change the fact that people want to own their own homes and start families so I don't see it as a complete waste of money unless your only buying a home to sell it on to make money..... which i'm not.

At the end of the day im trying to take the next step in life and unfortunately that time is now... you can't always plan when the times right... and I don't think things are going to change on the housing market for a long time, so will just have to deal with it as it is.

I do see renting a waste of money because:

1. I can do very little if anything to the house
2. I'd be paying as much in rent as I would be on a mortgage
3. If I rent I won't ever be able to save up for a deposit because all my income will be going on a house that I will never own.
The list goes on...

Everyone has different opinions so im afraid as much as I don't want to go down the shared equity route when mortgage lending is so tough, it may be my only option so I was just looking for advice from people that had bought homes from this company.

Please take a step back and have a second look with fresh eyes.

Buying a property at the top value when prices are falling and won't recover for a decade or longer is extremely hazardous. To start off as the others said you will have a harder time selling a shared equity property but more importantly you will be trapped in massive negative equity for a decade. What happens if you need to move due to children or job moves. Mortgage renewal would kill having no equity and interest rates going up.

Renting is far better at this stage of the market rather than committing buyer suicide.

murphyxx

The only reason I have said barratts is because they are the only ones building close to where we want and need to live for work.

Advice and info is all I asked for and as I said I am considering so its not like I've went ahead and jumped into something with my eyes closed

But at the end of the day I still see renting as a waste of money so that will never be an option for us. ,

goosander

Rather than live in Edinburgh, why not consider slightly further afield e.g. prices are more affordable in Fife.

murphyxx

Its not the house prices that are the problem, the houses we have been looking at are around 130k. Its the deposit that's the problem that's why shared equity was a possibility. We are saving as much as we can, we will just have to see how we get on and if we can put up with not buying a place in the mean time.

tomstickland

I'd avoid shared equity and new builds. If you can't borrow the money then not many other people will be able to either. Prices will have to adjust.

Be patient.