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Part rent/part buy - buying a greater share than advertised
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Candy0107
Posts: 1,645 Forumite
Hi All,
Hopefully someone here will be able to help - I can't see that this has been asked in the past. I am looking at part rent part buy in the next couple of years. Most of the developments offer a 60% share/40% rent. What happens if we can afford a bigger share? I'll illustrate below
Market value £100,000.
Purchase (60%) £60,000
Rent (40%) = £400 per month
If we could get a mortgage of £80,000, could we buy 80% of the house? and the rent would be calculated on the remaining 20% (£200 per month)?
I have made the calculations really simple, but hopefully you get the drift? I have emailed one of the housing associations, but they haven't got back to me so I thought I would try here.
Thanks
Candy x
Hopefully someone here will be able to help - I can't see that this has been asked in the past. I am looking at part rent part buy in the next couple of years. Most of the developments offer a 60% share/40% rent. What happens if we can afford a bigger share? I'll illustrate below
Market value £100,000.
Purchase (60%) £60,000
Rent (40%) = £400 per month
If we could get a mortgage of £80,000, could we buy 80% of the house? and the rent would be calculated on the remaining 20% (£200 per month)?
I have made the calculations really simple, but hopefully you get the drift? I have emailed one of the housing associations, but they haven't got back to me so I thought I would try here.
Thanks
Candy x
Debts at the start of my journey - about £23,000 lightbulb moment 01.03.2007 (1st payment to CCCS)..Debt Free Date 25.06.2013 Deposit savings £17,000/£30,000
0
Comments
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Do most offer only 60%? I am looking at one that starts at 25%.
You can usually 'staircase' in increments of 10%. Often up to 100%, but not always.
The rent is capped at 2.75%. Think you may have to check how much they actually charge, as it may be developer dependent.
There is also a hefty service charge to watch out for too.
Every development is going to have it's own arrangements.0
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