We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
My Shared Equity Success Story
Options
thriftychap_2
Posts: 201 Forumite
These schemes get soooooo much negative publicity on this board i thought i would put an alternative story forward. I do however concede that many government schemes are propping up the housing market BUT they can help people!
I purchased my flat in 2009 for 109,500 i had a 60% mortgage (61,000) and a 40% loan (43,900) from places for people. The scheme I used was open market homebuy. I could buy any property I liked new or old and negotiate the price just like a 100% purchase.
3 happy years later (now married and earning more) we have sold the flat for 131,000. I have to pay back 40% (52,000) to places for people and repay the remaining mortgage (<50,000) this leaves me with 28k equity.
The reason why I enjoyed this scheme so much is because of the small mortgage I was able to get a 60% LTV mortgage on a great rate. So, due to the small mortgage I could overpay as I earned more.
This equity along with savings has left me (us) in a great position to buy a house we can start a family in, all thanks to the shared equity scheme!
I purchased my flat in 2009 for 109,500 i had a 60% mortgage (61,000) and a 40% loan (43,900) from places for people. The scheme I used was open market homebuy. I could buy any property I liked new or old and negotiate the price just like a 100% purchase.
3 happy years later (now married and earning more) we have sold the flat for 131,000. I have to pay back 40% (52,000) to places for people and repay the remaining mortgage (<50,000) this leaves me with 28k equity.
The reason why I enjoyed this scheme so much is because of the small mortgage I was able to get a 60% LTV mortgage on a great rate. So, due to the small mortgage I could overpay as I earned more.
This equity along with savings has left me (us) in a great position to buy a house we can start a family in, all thanks to the shared equity scheme!
Mortgage overpayment
01/05/11 - 31/12/2011
£5000/£7000
End of 2012 target
£8400
0
Comments
-
Well done. I am happy that my tax money is going to subsidise your personal enrichment and help price members of my own family out of the housing market.0
-
How did you manage to get more for the flat after only 3 years ? Did it need a lot of work doing on it ? I don't like these schemes but if it worked for you then ok.0
-
The only reason it worked for you was due to the rise in the price of the property you bought in 2009. This would have happened irrespective of the subsidy you received to purchase the place. So your 'success' has nothing whatsoever to do with it being Shared Equity (other than you wouldn't have been in a position to benefit from the increase without the subsidy).0
-
princeofpounds wrote: »Well done. I am happy that my tax money is going to subsidise your personal enrichment and help price members of my own family out of the housing market.
Everybody knows school kids don't pay tax.0 -
RenovationMan wrote: »Everybody knows school kids don't pay tax.
Very funny.0 -
TrickyDicky101 wrote: »The only reason it worked for you was due to the rise in the price of the property you bought in 2009. This would have happened irrespective of the subsidy you received to purchase the place. So your 'success' has nothing whatsoever to do with it being Shared Equity (other than you wouldn't have been in a position to benefit from the increase without the subsidy).
Well done on contradicting yourself! As you pointed out, the scheme had everything to do with my 'success'. I could not afford a propery without the scheme. The scheme also allowed me to pay extra on the mortgage as I earned more because payments on the 60% were so low.
No scheme = no Property = no equity, simples!Mortgage overpayment01/05/11 - 31/12/2011£5000/£7000End of 2012 target£84000 -
motherofstudents wrote: »How did you manage to get more for the flat after only 3 years ? Did it need a lot of work doing on it ? I don't like these schemes but if it worked for you then ok.
I negotiated. The scheme allowed me take advantage of the clapse and negotiate well on a newbuild flat. I would have missed this opportunity if it not for the scheme.
I am now able to upgrade to a house (this is good for the market is it not)Mortgage overpayment01/05/11 - 31/12/2011£5000/£7000End of 2012 target£84000 -
princeofpounds wrote: »Well done. I am happy that my tax money is going to subsidise your personal enrichment and help price members of my own family out of the housing market.
Read the post fella - I borrowed 43,000 of OUR taxes and paid back 52,000. A pretty good investment for you I hope you would agree!
Your own family have the same opportunities we all have. I did what's right for me and my family, I find it hard to believe any other person would not.Mortgage overpayment01/05/11 - 31/12/2011£5000/£7000End of 2012 target£84000 -
princeofpounds wrote: »Well done. I am happy that my tax money is going to subsidise your personal enrichment and help price members of my own family out of the housing market.
Can't your family use this scheme?0 -
thriftychap wrote: »Read the post fella - I borrowed 43,000 of OUR taxes and paid back 52,000. A pretty good investment for you I hope you would agree!
Your own family have the same opportunities we all have. I did what's right for me and my family, I find it hard to believe any other person would not.
No, for various reasons they do not qualify as one of the special-interest groups that have access to these subsidies.
As for you maths, I'm not really concerned about your personal profitability, I am much more concerned about the aggregate economic distortions that subsidies create.
By the way, yes I would have taken advantage of a scheme I felt was beneficial. I don't have any kind of problem with you, only the policy.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.1K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244.1K Work, Benefits & Business
- 599K Mortgages, Homes & Bills
- 177K Life & Family
- 257.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards