If FTB can't afford full price, could I keep % ownership?

DervProf

Financial_Savvy wrote: »

I would have nothing to show for it. But if I held onto say 15% of the share of the house, when they sell in 5 years time bingo.

Of course they`ll sell in 5 years time, and it`s obvious that your 15% stake will be worth more than it is today. It may have escaped your notice, but there seems to be a slight problem with the UK property market at the moment, and it may be a year or two before prices start to rise again, by which time your 15% stake might have lost 20%(?) of it`s value.

Oh, and here`s a thought...... What if house prices do go up in the next five years, and your buyer does think about selling. That 15% stake of yours might just put them off the idea, as they are going have to find/borrow that 15% to pay you off.

Well, if you do manage to do this deal, good luck, you might just need it. Oh, I forgot, you don`t need luck with property investment, it`s a guaranteed bet. :rolleyes:

500Triumph650

Gorgeous_George wrote: »

Of course it can be done. There are plenty of shared ownership schemes already.

You may need them to pay rent for the 15% and their mortgage company will want a first charge on the property.

Might cost a few £££s to set up.

GG

No thats totally wrong if you are talking about shared ownership.

He would have to pay rent on the 15% you still owned. Why on earth would you pay rent on something you already owned, when you didn't even live there :huh:

poppy10_2

Turnbull2000 wrote: »

What, you'd pay off their negative equity? This is either a wind up or the most stupid idea of 2008.

Financial savvy? More like financial retard.

Debt_Free_Chick

Financial_Savvy wrote: »

To sell my house......

But you won't have sold it.

You would have sold 85% of the equity and retained 100% liability for the mortgage. You would have to get a mortgage jointly with the buyer and that mortgage would prevent you getting a mortgage to buy a new place, unless you were earning enough to justify borrowing the total of the two mortgages.

Think about it ......

F_T_Buyer

The only way to do this is to give the FTB a loan, interest free and repayable on the sale (or after a certain time), which has a charge over the house.

However, as an FTB myself (although not buying at these still ridiculous prices) I would just laugh at you.

wymondham

I have a feeling we are going to see many more 'imaginative' idea's to sell properties in the coming months.......

Financial_Savvy

Well we have been busy replying.

It was only an idea, and not even my idea at that but I've had all the feedback I want now. I will pass it on with your thanks.

No need to call me a dumbass.:mad:

the_baldman

This looks like a Baldrick cunning plan. Why not borrow against the house to invest in turnip futures?:rotfl:

the_baldman

Sorry financial savvy. Your plan is only what the large builders are trying to use to entice first time buyers rather than facing reality and dropping prices. FTBS be aware just insist on a discount!!!

bryanb

F_T_Buyer wrote: »

The only way to do this is to give the FTB a loan, interest free and repayable on the sale (or after a certain time), which has a charge over the house..

Why exactly would the loan have to be interest free?