Affordable housing

Star978

So I used a scheme to purchase my first house called Discount of value market. However it is classed as affordable housing, why is this? 

Does this mean it’s council? Even tho I have a full mortgage on it

Or is it simple because it’s a government scheme 

theartfullodger

Leasehold or freehold? if both and different owners, is freeholder council?

What do you mean by FULL mortgage? 

Who/what did you buy it from??

Many owner/occupier properties (with or without mortgage..) were originally owned/built by councils (or housing associations) - eg one house I own, two flats owned by 2xson-in-law families - .. and commonly called "council" properties...

In my experience council tenants (ie don't own, rent from council ) are usually nicer, friendlier, and don't bang on about property prices all the time and daily wail recent "stories"

Think you are referring to mortgage type... and OFF not of
...
https://ksmortgages.co.uk/first-time-buyer/discount-off-market-value/

Best regards, good luck!

Star978

theartfullodger said:

Leasehold or freehold? if both and different owners, is freeholder council?

What do you mean by FULL mortgage? 

Who/what did you buy it from??

Many owner/occupier properties (with or without mortgage..) were originally owned/built by councils (or housing associations) - eg one house I own, two flats owned by 2xson-in-law families - .. and commonly called "council" properties...

In my experience council tenants (ie don't own, rent from council ) are usually nicer, friendlier, and don't bang on about property prices all the time and daily wail recent "stories"

Think you are referring to mortgage type... and OFF not of
...
https://ksmortgages.co.uk/first-time-buyer/discount-off-market-value/

Best regards, good luck!

Freehold, and brought it from Taylor wimpy 
 full mortgage so I own 100 % of house at a 20% discount but when come to sell I sell it on with 20% discount.

thanks for you response 

Flugelhorn

I saw one like this once on a new estate which was 20% off and then had to be sold on at 20% off market value - there were no other strings attached and anyone could buy it - I could even have bought it for cash, wasn't a council  house, not sure who was overseeing any future sale, presume there was something in the covenants

MSE_James

In planning policy terms, 'affordable housing' is basically anything where the cost or eligibility is regulated in some way.  In other words, anything that's not on the open market 

DullGreyGuy

Star978 said:

So I used a scheme to purchase my first house called Discount of value market. However it is classed as affordable housing, why is this? 

Does this mean it’s council? Even tho I have a full mortgage on it

Or is it simple because it’s a government scheme 

The other name for it is Council Shared Equity, you own 80% council owns 20% but unlike other shared ownership schemes you dont pay rent on it. When you want to move on you sell your 80% to someone else and the council retains their 20% hence ensuring it remains affordable housing. You can staircase it to 100% if your council allows this. 

Star978

MSE_James said:

In planning policy terms, 'affordable housing' is basically anything where the cost or eligibility is regulated in some way.  In other words, anything that's not on the open market 

Is this a good thing? Or bad thing ? 

user1977

Star978 said:

MSE_James said:

In planning policy terms, 'affordable housing' is basically anything where the cost or eligibility is regulated in some way.  In other words, anything that's not on the open market 

Is this a good thing? Or bad thing ? 

For whom? It's good if it means you can buy a property which you couldn't otherwise afford.

Myci85

Have seen lots of discounted house sales on new build estates by me, I don't think the council own the 20%, it is simply that the developers have to provide a percentage of affordable housing on their sites. So you buy at the percentage discount, and you sell at the same percentage discount on whatever the current market value is. 

In terms of if it's a good or bad thing, some people say it's a bad thing because when you sell, you only get the 80% or whatever of what it's worth so it's harder to buy your next property, but as you bought at the same percentage, I see no difference to if someone can only afford a one bed flat as their first purchase, and later they sell and buy a house. 

user1977

DullGreyGuy said:

Star978 said:

So I used a scheme to purchase my first house called Discount of value market. However it is classed as affordable housing, why is this? 

Does this mean it’s council? Even tho I have a full mortgage on it

Or is it simple because it’s a government scheme 

The other name for it is Council Shared Equity, you own 80% council owns 20% but unlike other shared ownership schemes you dont pay rent on it. When you want to move on you sell your 80% to someone else and the council retains their 20% 

I don't think the scheme the OP is talking about involves the council at all (other than the planners having imposed the condition).

Star978

user1977 said:

DullGreyGuy said:

Star978 said:

So I used a scheme to purchase my first house called Discount of value market. However it is classed as affordable housing, why is this? 

Does this mean it’s council? Even tho I have a full mortgage on it

Or is it simple because it’s a government scheme 

The other name for it is Council Shared Equity, you own 80% council owns 20% but unlike other shared ownership schemes you dont pay rent on it. When you want to move on you sell your 80% to someone else and the council retains their 20% 

I don't think the scheme the OP is talking about involves the council at all (other than the planners having imposed the condition).

I don’t think the scheme I’ve used is council owned either because surely I would’ve been informed this before ??