questions for buying property

spezial

Cornucopia wrote: »

Unless you are 60 or over, then your interest is purely academic.

Here's their website: http://www.homewise.co.uk/

I am not over 60, but I have relatives over 60, which can inherit me the property, that's what I am saying

airyfairy76

You were given the website with the info in it!

"When you die or move permanently into long-term care, the property reverts back to the company. If you have retained a percentage of the property’s value, it is sold and your share of the net sale proceeds is paid to you or your estate."

Cornucopia

spezial wrote: »

I am not over 60, but I have relatives over 60, which can inherit me the property, that's what I am saying

The whole purpose of these schemes is to allow pensioners to effectively downsize their investment/exposure in the property market whilst retaining a similar sized property. They might want to do this to pay off their mortgage or other debts, which they can no longer afford, being on a limited income.

FWIW, I don't think it's a good idea. The nature of all Equity Release schemes is that compound interest and house price inflation work strongly against the interests of the householder.

I don't see how having a relative over 60 helps you, if this is about finding a property for you. They cannot "inherit"(*) it to you until they die or go into long-term care. This could take 30 years, so it is not a solution, I wouldn't have thought.

(*) We would say bequeath, or simply leave... a property to someone. You can only use inherit...from, not inherit...to.

spezial

then I am stuck
I am looking for a 50k discount and I cannot find a way to achieve this
auctioned properties are usually in bad condition and want much money to restore them
are there any properties that I could negotiate such discount?
or any other way, a scheme or something?
for example will they extend the scheme of not paying rent if you have 75% of a property, like they do for old people?
or maybe offer a discount to move from 50% ownership to 100% ownership?

Cornucopia

spezial wrote: »

then I am stuck...

Well, yes, very possibly.

People don't talk about a Housing Crisis in London and the South East lightly.

There are cheaper housing options: shared ownership, flat-sharing, mobile homes and renting a single room in an HMO.

None of them are great options, but if that's all there is...

spezial

if I buy a shared ownership, will they give me the 35-75% discount to buy the rest percentage? given the tories promise to extend Right to Buy for house associations?

airyfairy76

No. It would be for housing association tenants in housing association properties.

spezial

airyfairy76 wrote: »

You were given the website with the info in it!

"When you die or move permanently into long-term care, the property reverts back to the company. If you have retained a percentage of the property’s value, it is sold and your share of the net sale proceeds is paid to you or your estate."

I have read this, but I don't get it.
There is a three bedroom house now selling in Romford for 220k, with normal value of 300k.

Why would a pensioner need a three bedroom house? So, he will probably have his kids live with him too. This is what I am thinking about my case.

And he will pay 220k for a life time lease only? I mean if he dies in 5-10 years, he will end up with NOTHING? why would he do that? why would he pay that still enormous enormous amount at once? It makes no sense. It would make sense if the old person benefits from the discount and he then can leave a 90year lease to his kids

airyfairy76

spezial wrote: »

I have read this, but I don't get it.
There is a three bedroom house now selling in Romford for 220k, with normal value of 300k.

Why would a pensioner need a three bedroom house? So, he will probably have his kids live with him too. This is what I am thinking about my case.

And he will pay 220k for a life time lease only? I mean if he dies in 5-10 years, he will end up with NOTHING? why would he do that? why would he pay that still enormous enormous amount at once? It makes no sense. It would make sense if the old person benefits from the discount and he then can leave a 90year lease to his kids

Similar to Shared Ownership, but paying the rent portion up front.

Rough example (don't know how calculated)
You pay £220k for a £300k property.
£150k will be for a 50% share
£70k will be for the "lifetime lease"
When you die, the house will be sold and the 50% share will revert to your beneficiaries.

And ridiculous assumptions about a pensioner and a three bedroom home...

spezial

since he doesn't know how much he will live, why not just pay rent for the rest 50% of the property for as long as he lives? it may end up paying less than 70k