85/15 Shared Ownership

BadgerFace_2

benylin wrote: »

Why MUST we have a repayment vehicle?? We intend to sell the house before the 10 years so (assuming we get at least what we paid for it) we would pay them back through the sale then. I get that if we wanted to stay for 10yrs or over we would need to save an extra amount a month but we dont.

You may plan to move, but planning to and being able to are two different things? Are you thinking there will be bucket loads of equity in the house and you can just sell and use that as a deposit on a bigger place. There's a lot of people that would have thought that 5 years ago too...look where they are.

Something, anything, happens in the next 10 years meaning you either want to stay there or can't afford to move, they'll turf you out if you can't pay...Bearing in mind the figure they want could have gone up significantly.

Another thing to ask, which Barratt didn't know when I asked, was who's valuation they'll accept when it comes to working out how much money you owe. I doubt they'll accept the actual sale price, but not sure if they'll want 'their own' valuation. If so, who pays?

Don't get me wrong here, I'm not against the schemes, I've bought a house on one (quite different to this though). I just wouldn't be comfortable in knowing that there is the certainty of a massive bill 10 years down the line and I had to rely on selling to pay it.

spud211

benylin wrote: »

we're actually very happy with the plot/estate and the area is a big positive too.

i dont understand why we would find it impossible to sell under 10 years though?

If you are happy then fair enough - i'd put money on it being one of their hard to shift plots though regardless

I say you will never sell it because of a few reasons.

1) You are unlikely get a 10-20% increase in price in < 10 years..I don't believe it will happen. Therefore selling in the next 10 years will most likely leave you in negative equity

2) As per the earlier point - the plot/property was hard to sell as brand new..it will be even harder the 2nd time round

3) Even if you find a willing buyer, the terms of the loan may mean the developer has a say in if you can sell or not, or may place other restrictions which complicate things. It's off putting to buyers as it can become a non standard sale (getting the developer to release their charge on the property).

The offers are very tempting I know, I almost went down the route too..until you realise just how much more you are paying for a bigger mortgage with a property that is harder to sell.

Good luck regardless of the choice you make though!