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SupahPossum13
Posts: 1 Newbie
Hello everybody
I hope I'm in the right forum to ask about housing co-operatives. It's something that a few friends and I are considering, but we're unsure of some of the ins and outs and are finding help hard to come by.
The idea is that one of us, who owns a house on mortgage currently, sells up and we buy and live together paying towards the co-op. We've had some contact with a group called Radical Routes but in order to get answers we need to attend their 3-monthly workshops and as we're all neuro-divergent and/or disabled, it's been very hard to attend, focus and stay til the end. We've searched all over the internet and emailed several possible places but we've had little to no response.
I'm hoping we can find some help here.
Our questions;-
1. Person A owns the house she is living in and is eligible for (non-housing) UC benefits. If she sells the house and buys over 16k in loanstock in our cooperative she seems to become ineligible for benefits (even though she is living in the cooperative’s house). Could she (and others who loan to the cooperative) either;
a. Have joint interest in the house (perhaps with a restrictive contract requiring 5 years notice to sell out, giving the coop right to buy out with the original sum, or ceding rights to the coop.
b. Create some form of discretionary trust or the like which invests the money into the cooperative as loanstock
c. Simply donate the money
2. What mortgage providers are even going to talk to us?
3. Are we able to get some example cases of reasonable numbers, i.e. what sort of deposit/loanstock/size loan etc. what kind of loanstock to mortgage ratio is expected? What sort of interest rate, same, better or worse than an individual?
4. Are there any examples of it going wrong?
5. How long do you usually expect to repay the loanstock or do you even need to (considering its from private members)
6. How long does the business plan need to cover?
7. Do you get a 25 year mortgage then set a fixed date e.g. 5 years for loanstock and then just reissue that after 5 years?
Any help at all would be greatly appreciated.
SupahPossum13
I hope I'm in the right forum to ask about housing co-operatives. It's something that a few friends and I are considering, but we're unsure of some of the ins and outs and are finding help hard to come by.
The idea is that one of us, who owns a house on mortgage currently, sells up and we buy and live together paying towards the co-op. We've had some contact with a group called Radical Routes but in order to get answers we need to attend their 3-monthly workshops and as we're all neuro-divergent and/or disabled, it's been very hard to attend, focus and stay til the end. We've searched all over the internet and emailed several possible places but we've had little to no response.
I'm hoping we can find some help here.
Our questions;-
1. Person A owns the house she is living in and is eligible for (non-housing) UC benefits. If she sells the house and buys over 16k in loanstock in our cooperative she seems to become ineligible for benefits (even though she is living in the cooperative’s house). Could she (and others who loan to the cooperative) either;
a. Have joint interest in the house (perhaps with a restrictive contract requiring 5 years notice to sell out, giving the coop right to buy out with the original sum, or ceding rights to the coop.
b. Create some form of discretionary trust or the like which invests the money into the cooperative as loanstock
c. Simply donate the money
2. What mortgage providers are even going to talk to us?
3. Are we able to get some example cases of reasonable numbers, i.e. what sort of deposit/loanstock/size loan etc. what kind of loanstock to mortgage ratio is expected? What sort of interest rate, same, better or worse than an individual?
4. Are there any examples of it going wrong?
5. How long do you usually expect to repay the loanstock or do you even need to (considering its from private members)
6. How long does the business plan need to cover?
7. Do you get a 25 year mortgage then set a fixed date e.g. 5 years for loanstock and then just reissue that after 5 years?
Any help at all would be greatly appreciated.
SupahPossum13
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