New Local Help to buy Scheme

MX5huggy

Pembrokeshire have just launched a scheme where you can borrow up to 40% of a property value. Seems a really bad plan to me buy a £200k property with £60k “free” loan in 10 years you’ll owe the Council £90k if house prices go up at fairly typical rates. 

https://www.pembrokeshire.gov.uk/housing/Homebuy-Pembrokeshire?fbclid=IwQ0xDSwKrwnRleHRuA2FlbQIxMQABHvzYuCQjO_7emeBHcSpnJCk3_ViLsF2Yn3T7Kr9q-wbsTmkM-d40MTb7vIL0_aem_PjVpklr8zFX6qRAKlP1pmA

Penguin_

Trust me, this scheme is the least of PCC's issues.

eddddy

MX5huggy said:

Pembrokeshire have just launched a scheme where you can borrow up to 40% of a property value. Seems a really bad plan to me buy a £200k property with £60k “free” loan in 10 years you’ll owe the Council £90k if house prices go up at fairly typical rates. 

Essentially, that's how Shared Ownership works. 

For example...

• You pay 60% of the property's value when you buy the property
• You get back 60% of the property's value when you sell the property

Conceptually,  it's a bit like if 2 friends bought a property together

• One friend puts in 60% of the selling price, the other friend puts in 40% of the selling price.

• When it's eventually sold, one friend gets 60% of the selling price, the other friend gets 40% of the selling price

ReadySteadyPop

MX5huggy said:

Pembrokeshire have just launched a scheme where you can borrow up to 40% of a property value. Seems a really bad plan to me buy a £200k property with £60k “free” loan in 10 years you’ll owe the Council £90k if house prices go up at fairly typical rates. 

https://www.pembrokeshire.gov.uk/housing/Homebuy-Pembrokeshire?fbclid=IwQ0xDSwKrwnRleHRuA2FlbQIxMQABHvzYuCQjO_7emeBHcSpnJCk3_ViLsF2Yn3T7Kr9q-wbsTmkM-d40MTb7vIL0_aem_PjVpklr8zFX6qRAKlP1pmA

Or you could end up in a much worse situation.

https://www.surveyorsorted.co.uk/the-help-to-buy-scheme-how-negative-equity-has-affected-homeowners/

Penguin_

To be fair to PCC, the main pull to the county is tourism & second homes. As a result there are a lot of local younger people who can't afford to buy a property whether in a relationship or by themselves. 

deannagone

No one is forcing anyone to buy under the scheme!