Repaying a Redrow Easi:buy scheme loan

SHC33 · 13 December 2018 at 2:32PM

Hi

In 2009 I purchased a property using Redrow's easi:buy scheme (a shared equity scheme). At the time of purchase I had no information regarding this scheme, with the exception of a promotional brochure which briefly explained the 25% loan was to be re-paid after 10 years or upon the sale of the property, whichever happened sooner.

I am now at the point where I have been contacted by Redrow as the ten years is up early next year. They asked me all sorts of questions on the phone regarding how I planned to repay which were frankly intrusive (e.g. do you have a family member who can loan you the money). I am in a position where the value of my property has fallen by 15% so I can't sell it without making a loss.

I do of course intend to repay it but I am uneasy regarding the lack of legal documentation supplied by Redrow. At the moment all I have had is a letter asking me to contact them. I did ask for something in writing but I have received nothing which makes me question how legitimate the debt is?

I wondered if anyone had experience of repaying this loan that they could share?

Thank you in advance.

foxy-stoat · 13 December 2018 at 3:08PM

I am sure your solicitor would of been aware of this - you obviously knew the purchase price and how much you paid them.

Was a charge put on the property?

[Deleted User] · 13 December 2018 at 6:55PM

SHC33 wrote: »

Hi

In 2009 I purchased a property using Redrow's easi:buy scheme (a shared equity scheme). At the time of purchase I had no information regarding this scheme, with the exception of a promotional brochure which briefly explained the 25% loan was to be re-paid after 10 years or upon the sale of the property, whichever happened sooner.

I am now at the point where I have been contacted by Redrow as the ten years is up early next year. They asked me all sorts of questions on the phone regarding how I planned to repay which were frankly intrusive (e.g. do you have a family member who can loan you the money). I am in a position where the value of my property has fallen by 15% so I can't sell it without making a loss.

I do of course intend to repay it but I am uneasy regarding the lack of legal documentation supplied by Redrow. At the moment all I have had is a letter asking me to contact them. I did ask for something in writing but I have received nothing which makes me question how legitimate the debt is?

I wondered if anyone had experience of repaying this loan that they could share?

Thank you in advance.

I really despair of people sometimes.

Are you saying you signed a legal agreement that let you buy a house you most likely couldn't have afforded to buy without, didn't read the contract or talk to your solicitor about it and are now, that the 10 years are up, looking for a way to not pay?

System · 13 December 2018 at 7:25PM

SHC33 wrote: »

I did ask for something in writing but I have received nothing which makes me question how legitimate the debt is?

How about the contract you signed when you bought the house, the one your solicitor went through for you? You owe the money, time is now up, you now get to pay the price of sticking your head in the sand and not doing anything to make sure you had the funds to pay the money.

Good news is that if the price of the house has fallen 15% since you bought it then if it is shared equity their share has dropped 15% in value too so you now owe them less than you did at the start.

SHC33 · 14 December 2018 at 4:55PM

Thanks for the replies.

I was actually after some advice from someone who had been through the process of repaying the loan, as I have said I haven't really received anything from Redrow regarding this and I was looking for advice.

Never said I wouldn't repay it, and thanks for your concern but I can afford the repayments.

If you haven't been through the process of repaying this loan, I don't need to hear from you.

somethingcorporate · 14 December 2018 at 6:51PM

It will, of course, be part of the contract you signed when you bought the house. Surely you kept a copy of this paperwork?

Kidder81 · 14 December 2018 at 8:20PM

I’m not sure why you have a lack of documentation. Surely you have a copy of your house deeds that your solicitor supplied you with showing the charge in your property. In addition you will have the easi buy contract you and your witness signed to confirm the charge?

The easi buy scheme means a charge is placed on your property. In your case it’ll be 25% of the purchase price.

It’s not like help to buy in that the fixed amount doesn’t decrease or increase in line with the change in value of the house.

You need to contact Redrow and discuss repayment with them. I’d do it quickly because Redrow start charging interest if it’s not repaid once your 10 year anniversary is reached. I can’t remember the exact level of interest but it’s in the region of 4% if not more so it’s obviously dearer than if you were paying a mortgage on the additional 25%.

Pixie5740 · 14 December 2018 at 8:43PM

I bought my first place using a similar scheme but it was Stewart Milne rather than Redrow. Stewart Milne has a second charge against the property and all my paperwork relating to the equity loan was with the original conveyancing documentation. The only options when the 10 years were up were to sell or repay the 25% in one go I don't remember there being a repayment plan option. As things worked out I sold and moved before the 10 year period and repaid the equity at that point.

Repaying a Redrow Easi:buy scheme loan

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