Part Rent Part Buy Help!

pennypinchingmum

We're in a situation where no bank will lend us a mortgage since only my husband works cos i'm bringing up the 'little darlins' . But we're so sick of renting and landlords and letting agents and the other 99 pains in the bot associated with renting. We want to get on the property ladder! So we've applied for the part rent part buy scheme in Portsmouth. However we're desperate to move but the company homes in hants are to say the least tight lipped on the whole process. If anyone has any experience or info with part buy part rent in the country please post since i like going into situations with my eyes open but i just cant get any info. Please Help!
Many thanks

SquatNow

Part-Rent-Part-Buy has all the disadvantages of buying combined with all the disadvantages on renting.

It was a last gasp attempt by the government to give house prices a final shove upwards, but it's a generally failure as the morgage payment + rent worked out the same or higher than the mortgage payment would be if you bought the place outright.

alibab

Hi

We had the same problems with both incomes not able to borrow enough. We found a company that were doing this on the new developments in our area so we applied and was accepted due to low salary and first time buyers, this one you could buy from 60% and upto 80%. anyway this was last November and these houses are still empty as the company is arguing with the council on the selling price.
In the meantime our council advertised that they were doing the same thing on a new development by Persimmon, so we applied got accepted, viewed property and paid £100 deposit. Oh you need a mortgage in principle to secure one.This happened quick and now we are waiting for solicitors to sort everything out.

We decided to buy 50% and can purchase all in the future, we got our mortgage quite easily this way without a deposit. You have to live in the vicinity to do this, so I would get in contact with your local council to see if they have cort on yet.

Good luck!
alibab

dmg24

Useless unsubstantiated advice from Squatnow.

There are several variations on the 'part rent part buy' idea, of which you can find details of here (this is a Midlands scheme, but the same principles apply).

For me, shared ownership enabled me to get on to the housing ladder, and when I chose to sell, I was lucky to also make an excellent profit. The rent that is paid on SO properties does not tend to be at full market value (mine was 2/3 MV), so you are saving money there.

If you were to fall on hard times, a benefit of SO is that you are eligible for HB on your rented share.

Every HA or developer has different rules, and the key is to be aware of these conditions, and make sure they suit your circumstances.

Best of luck! x

SquatNow

So DMG thinks its good because he/she sold and made a profit... but what if the value of the property had dropped?

Plus being only part-owner you are limited in what changes you can make to the property.

dmg24

SquatNow wrote: »

So DMG thinks its good because he/she sold and made a profit... but what if the value of the property had dropped?

Plus being only part-owner you are limited in what changes you can make to the property.

If the value of the property had dropped, I would have made less of a loss than had I owned 100% of the property.

The ability to make changes in the property all depends on the terms of the agreement. In my case I was allowed to do whatever I wanted as long as it was not to the detriment of the property. Furthermore, I got 100% of any additional value added to the property as a result of the improvements.

As I said before, you need to make sure that are aware of the conditions of the agreement that you are entering into. This statement would of course still apply if the OP was buying outright or still in rented accommodation.

SquatNow

Sounds like you got a very VERY good deal.

Most people wont get such a good deal.

I think it comes down to exactly what deal the person gets.

I should also throw in that in many cases properties offered on a shared ownership basis are overvalued anyway.

dmg24

SquatNow wrote: »

Sounds like you got a very VERY good deal.

Most people wont get such a good deal.

I think it comes down to exactly what deal the person gets.

I should also throw in that in many cases properties offered on a shared ownership basis are overvalued anyway.

Is that not what I said in my first post? :rolleyes:

You really need to quantify your statements SquatNow. 'Most' and 'many' do not make for strong arguments.

Evee2000

We were in a similar situation -unable to buy outright as low income. Through our local housing association we were able to pick the house we wanted, pick the level of purchase we wanted and rent the remainder. We were able to make improvements without issue and when it came to buying outright they just valued the house as if the improvements had not been undertaken. We clicked, as the value of our house also went up substantially. The district valuer had to use the 'actual' sold figures to value the property and this was taken from land registry. As the land registry is only updated quarterly, we clicked again (in an increasing market). Of course the reverse could also be true. It suited us at the time.

SquatNow

dmg24 wrote: »

Is that not what I said in my first post? :rolleyes:

You really need to quantify your statements SquatNow. 'Most' and 'many' do not make for strong arguments.

They are better off waiting now anyway as for what they'de pay for 50% of a property now, in 2 years they'll be able to get 100% of a better property.

regularsaver1

Hi, I live very near you.

Do you and your husband have money for deposit and legal fees?