Shared ownership/equity is a scam.

brit1234

Hamish house prices are falling and set to continue falling what ever you say. I just don't want other people to get trapped in this shared ownership scam scheme like my friends and all their problems they are having.

poppysarah

HAMISH_MCTAVISH wrote: »

create further falls in prices.

OMG. It's a money saving forum so who'd have thunk it.

Blacksheep1979

and_another_thing... wrote: »

At 10 to 12 on a Saturday night I think I can excuse myself for my poor response but yes, you're right with the maths there!
Following that the flats a few streets away should have sold for £100K more than what I paid - that would be 50% of what I paid for mine in 09, not 70K.

Maybe you're not in one of those areas where a couple of streets make that difference - I did say 'in certain areas', it's still a 35% difference though (assuming you're sums are correct this time). Are these also shared ownership properties as everyone knows SO generally overvalues property and maybe realistically they are actually worth 50% more?

Orpheo

vintagebakers wrote: »

People on here may call it a scam, thats up to you, put in your two cents, but people have the right to make their own choices, good or bad. I certainly will be reading ALL of the small print and if i don't like it i won't buy, not moaning in the local papaer cos i jumped on the wrong band wagon.

Uh-huh. But will you be moaning in 5 years time? Were you mis-sold a shared ownership property? It doesn't matter if you entered the contract willingly, the nasty money people conned you, you hapless simpleton, call 0844 CLAIM NOW!

brit1234

Shared Ownership Confusion over selling on open market

I own a shared ownership property - I own 70% and the housing organisation owns the other 30%. I wish to sell the property and have been told by the housing organisation that I can put it on the open market as they failed to find a buyer. What is confusing me is that they say I have two selling options -

1. Sell my share.

2. Sell 100% via 'staircasing and onward sale'. My understanding of what happens here is that the buyers money is used to temporarily purchase the rest of the shares in my name and then the property is transferred from me to the buyer on the same day.

My feeling is that the second option will attract more buyers however I have some worries about how this would work, this is where I am hoping someone can help! I can't seem to find out anything about this online or find anyone thats done this before!

Q1. Do I have to tell the buyers that I only own 70% and explain how it will work? if so then i think this would put people off.

Q2. Can anyone shed more light on how this sale actually works on the day of completion?

http://forums.moneysavingexpert.com/newreply.php?do=newreply&noquote=1&p=44202952

This is an example where the buyer has so called stair cased so much no one is willing to buy it. Why buy a 70% shared equity flat when you can buy a normal one for the same price without the 30% rent element.

I had never thought the more you purchase the less likely you are able to sell, guess it must be yet another problem with the shared ownership scam.

clairecymru

Its not all a 'scam'. My husband and i bought our flat on a shared equity scheme two years ago. We had no deposit so the builder paid our 25% deposit which we had to pay back with ten years but interest free for five years.

We have just sold and exchanged and have managed to pay a 10% deposit on our new place as well as the solictors and EA fees out of the profit.

So it can work for some.

brit1234

clairecymru wrote: »

Its not all a 'scam'. My husband and i bought our flat on a shared equity scheme two years ago. We had no deposit so the builder paid our 25% deposit which we had to pay back with ten years but interest free for five years.

We have just sold and exchanged and have managed to pay a 10% deposit on our new place as well as the solictors and EA fees out of the profit.

So it can work for some.

It is a scam however you just got out before prices really start tanking.

If you were so happy with it why did you sell after only 2 years?

What would of happened if you could sell and you had to start paying the loan back.

The scam with shared equity is you are buying something which is 25-30% even more overvalued than normal.

They are known as time bomb properties as they economically explode after 5-10 years. The same thing is happening with option arm and alt A mortgages in the US at the moment. People can exactly by the conditions of the purchase times the volume when there will be additional concentrated downward pressure on the housing market.

You are bragging about the scheme but at the same time you got out early avoiding the nasties coming.

Shared Equity is a scam designed to inflate house prices, even the BBC has done a program warning against them. I haven't seen them do that for shared ownership even.

How would you be if you still had it after 5 years in negative equity with additional loan interest to pay.

HAMISH_MCTAVISH

brit1234 wrote: »

Hamish house prices are falling.

Hi Brit,

I notice you've conveniently forgotten to change the Land Registry in your sig.

That's +0.8% this month.:D

clairecymru

Brit

This was never supposed to be my forever home. My plan was always to stay here 2-3 years til the property increased in price and then move on. I used shared equity because that was the only way i could get on the property ladder. If i never bought this flat on shared equity there is no way i would be able to buy my house now.

poppysarah

clairecymru wrote: »

Brit

This was never supposed to be my forever home. My plan was always to stay here 2-3 years til the property increased in price and then move on. I used shared equity because that was the only way i could get on the property ladder. If i never bought this flat on shared equity there is no way i would be able to buy my house now.

It was a gamble. If it's paid off then you are incredibly lucky. Where in the country are you?