Shared Ownership Scheme.

Melcron

Hi all,

First of all if this is posted in a incorrect place pls point me in the correct direction. Thanks

After watching Martin talking on the TV about equity release I have become
somewhat confused and decidely worried.

The situation:
Six years ago both my wife and myself agreed to a deal with North British housing with whom we were a tennant. The agreement was that if we could obtain a mortgage they (NBH) would pay £10,000 towards the Sale Price on a different property. The idea behind this was to encourage those capable to buy their own homes and vacate the NBH home that was initially rented to us(Or so i believed at the time). We took the offer on board and obtained a mortgage for £45,000. I believe the contract with NBH states that if we come to sell the house it will be valued and we will pay a proportion of the sold for value back to NBH.

As soon as I am able I will be contacting a solicitor to explain exactly what this means. Something I only brushed over with them at the time. I was younger and a heck of a lot more naive:think:


My concerns:
Is this anything like equity release?
Are NBH or whoever they may sell this debt on to likely to take a huge chunk of our money on selling the propery?
What, if any, terms and conditions should i be looking for in the contract that
should raise alarm bells?
If anyone has any experiences with these schemes please advise.....


Thanks

Worried in Fleetwood

toonfish

basically they own a portion of your house, that they paid for at outset (say 25%). When you sell up you will then repay them 25% of the sale price although there is usually an option for you to buy back this share in the interim.