Shared Equity Taylor Wimpey £119,995 flat

Trollfever

Thanks for the update.

Wealth warning:

The value of properties can go down as well as up.

kayla3600

Not all shared equity schemes are bad. I bought a flat 2yrs ago on a similar scheme. My mortgage is with nationwide (4.79% for 2yrs) recently just fixed at 4.09% for 3 years.
When I looked at the flat the builder wanted £172950, including all furniture etc. Nationwide came in and said it was only worth £158000. thats the price we got it for including all the furniture.
When fixing the mortgage at the beginning of january nationwide estimate the value at £180000, which looks about right with smaller flats on the same development being resold for £172000-£178000.
So if their current valuation is to be believed we have now made £20000 profit.
In 10years time or when we sell the builder will take 25% of the SALE price, which is important. If we sold now at the price we bought it for we would still come out with a profit

surreybased

Am glad that the OP has taken external advice - very sensible.

I was going to comment that his plans on renting out would have been dependant on the mortgage company allowing to rent out - which wouldn't be likely and a question he should clarify upfront.

Kayla, I hope your place has been a good buy, you may have bought at the right time - but I don't think you can count profit until a place is actually sold.

kayla3600

true, but i'm looking at flats only 1 or 2 floors below and they are selling. Fortunately our local council has finally started re-developing the town. And have built new school and college nearby. Hopefully this will all help when it comes to sell

Croker

Out of interest, Ryan, did the agent call you back as she promised, or has she resigned herself to losing the sale?

rh203

Croker wrote: »

Out of interest, Ryan, did the agent call you back as she promised, or has she resigned herself to losing the sale?

Hi, she knows she has lost the sale but I think I'm going to have a game getting the holding deposit back. She has stated that the deposit isn't normally refunded if the buyer simply states that they don't want to go ahead, yet they force you to use a single broker and don't give the opportunity to meet with them until after the deposit is down and simply give a quick call to check if you are eligible for the mortgage using your salary info and that all. It states on the back of the reservation form that I would be charged £100 if the agreement is cancelled before contract documents have been sent by the solicitor and £500 after they have been. Whilst I have received some forms through from the solicitor, they are basically just a run down of the costs etc and asking me to sign something and send back (which I have not done!). I think they are going to play hard ball over getting it back. Any suggestions?

Croker

rh203 wrote: »

Hi, she knows she has lost the sale but I think I'm going to have a game getting the holding deposit back. She has stated that the deposit isn't normally refunded if the buyer simply states that they don't want to go ahead, yet they force you to use a single broker and don't give the opportunity to meet with them until after the deposit is down and simply give a quick call to check if you are eligible for the mortgage using your salary info and that all. It states on the back of the reservation form that I would be charged £100 if the agreement is cancelled before contract documents have been sent by the solicitor and £500 after they have been. Whilst I have received some forms through from the solicitor, they are basically just a run down of the costs etc and asking me to sign something and send back (which I have not done!). I think they are going to play hard ball over getting it back. Any suggestions?

I'm not an expert, nor would I pretend to be - however, I would find it very surprising if they don't try and take you for the entire £500.

I'd advise you to fight them tooth and nail, of course! Beyond that, though, you might want to speak to a solicitor to get proper advice.

If the worst came to the worst, though, you'd be paying £500 to avoid an absolutely horrific deal. You should fight your corner as hard as long as you absolutely can, but even if you are ultimately unsuccessful, remember that you've avoided making a huge, horrible and very, very expensive mistake.

rh203

Croker wrote: »

I'm not an expert, nor would I pretend to be - however, I would find it very surprising if they don't try and take you for the entire £500.

I'd advise you to fight them tooth and nail, of course! Beyond that, though, you might want to speak to a solicitor to get proper advice.

If the worst came to the worst, though, you'd be paying £500 to avoid an absolutely horrific deal. You should fight your corner as hard as long as you absolutely can, but even if you are ultimately unsuccessful, remember that you've avoided making a huge, horrible and very, very expensive mistake.

Yea I expect the worst to be honest but I will be taking legal action if not. Luckily my GF is studying law at Northumbria so I'll just take the case through the Student Law Office for free and let them deal with it. All I have received though is basically a quote from the solicitor breaking down the fees etc and asking me for more information and signature to go ahead.

That, plus the fact that when I tried to go down to cancel the deal the day after I signed up, no one was at the office as the woman was at a funeral and there was no cover. The site manger even tried to phone to get someone but I was told that no one would be in until two days later and by then the documents were at my house! GRRR!:mad:

rh203

Anyone have any advice?

poppy10_2

rh203 wrote: »

Anyone have any advice?

About what?