part buy part rent houses..
11-02-2009, 06:25 PM
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part buy part rent houses..
any one know the score?!
as with many people my age, i cant afford a house on my own!!
but i could possibly afford a part-buy part-rent one!
does anyone know the details?!
as with many people my age, i cant afford a house on my own!!
but i could possibly afford a part-buy part-rent one!
does anyone know the details?!
11-02-2009, 06:30 PM
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Dont do it complete waste of time.
These schemes are just an attempt by builders to try to keep house prices ramped up and to try to hang on to their large profit margins.
Don't fall for it, You'll be able to buy them outright for less than 75% within a few years. Don't be brainwashed.Resist the temptation, you won't regret it.
These schemes are just an attempt by builders to try to keep house prices ramped up and to try to hang on to their large profit margins.
Don't fall for it, You'll be able to buy them outright for less than 75% within a few years. Don't be brainwashed.Resist the temptation, you won't regret it.
11-02-2009, 06:31 PM
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you haqve more bills than u will realise as you pay towards repairs etc so if its a new build then you might be ok for a while but anything older it could end up costly
11-02-2009, 06:38 PM
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Dont do it complete waste of time.
These schemes are just an attempt by builders to try to keep house prices ramped up and to try to hang on to their large profit margins.
Don't fall for it, You'll be able to buy them outright for less than 75% within a few years. Don't be brainwashed.Resist the temptation, you won't regret it.
These schemes are just an attempt by builders to try to keep house prices ramped up and to try to hang on to their large profit margins.
Don't fall for it, You'll be able to buy them outright for less than 75% within a few years. Don't be brainwashed.Resist the temptation, you won't regret it.
yea thats what im worried about!!
i just dont have the time to sit and save up the 15k for a deposit! or the spare cash!!
and unfortunately i live in the rather expensive south cambs area! i dont fancy moving too far away as my job, mates and family are here!
did think about relocating to a cheaper area up north! but im a bit reluctant!!
Last edited by l0ubie; 11-02-2009 at 06:41 PM.
11-02-2009, 06:39 PM
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mate of mine done this and he moved out bout a year later and made bout 10k, made just enuff extra to get his morgage so.....
another mate of mine is doing this, he got his flat about 6months ago and he's alright, but thats in a new build though!
another mate of mine is doing this, he got his flat about 6months ago and he's alright, but thats in a new build though!
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11-02-2009, 06:46 PM
#8
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My first house was part buy part rent. Mortgage half the house in your name and rent the other half off the housing association. Which was roughly half the amount we were paying mortgage, so saving about a third in mortgage costs. Think the H.A. pay building insurance you pay council tax etc. We also had to pay a service charge, might of been because of pieces of greenery scattered throughout the close. Any building changes you want to do, eg. new bathroom etc need to be verified by the H.A., supposedly to help in the event of selling the property, they value the house preupgrades and post upgrades, and if you ever do sell, add percentage increase to your half. I think we were'nt allowed to change anything in the kitchen.
You get the chance to buy percentage of property whenever, but it will go on current valuation, not when the house was first purchased. So come 5 years down the line you could be paying the same price for a qtr of the house that you did for half the house.
The H.A. we were with went on a points scheme to obtain the house, e.g. occupation, whether you had children etc. plus when we came to sell, they only let you sell for the value of the property. We lost out on a good £10,000 profit because they wouldn't let us sell it for more than it was worth.
Plus most the houses are new builds, so they look posh but dont have the build quality of an old house. Our old house had paper thin walls and no drill was required to fix shelves to the walls.
There was a big demand for these, so there could be waiting lists.
You get the chance to buy percentage of property whenever, but it will go on current valuation, not when the house was first purchased. So come 5 years down the line you could be paying the same price for a qtr of the house that you did for half the house.
The H.A. we were with went on a points scheme to obtain the house, e.g. occupation, whether you had children etc. plus when we came to sell, they only let you sell for the value of the property. We lost out on a good £10,000 profit because they wouldn't let us sell it for more than it was worth.
Plus most the houses are new builds, so they look posh but dont have the build quality of an old house. Our old house had paper thin walls and no drill was required to fix shelves to the walls.
There was a big demand for these, so there could be waiting lists.
11-02-2009, 06:58 PM
#10
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Its a good way to get on the property ladder, but I wouldnt get too attatched to the property, unless you plan on staying there for the foreseeable future, then Id be looking to buy the property outright asap. I still managed to make £12k, but I had offers above the asking price by more than two people who were willing to pay above the odds.
Also another piece of criteria for the H.A., was that your income must not give you financial status to be able to buy the house outright from the start. Hence limiting the market to first time buyers.
Also another piece of criteria for the H.A., was that your income must not give you financial status to be able to buy the house outright from the start. Hence limiting the market to first time buyers.
11-02-2009, 07:16 PM
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I don't understand why so many people think its such a bad idea! Its got nothing to do with builder's keeping house prices ramped up. They build the site for a contract price direct with the H.A and they get less money per plot than if they sold direct to the homeowner.
I have lived in shared ownership apartment for 2 years and think its a great way to get on the property ladder and get a bit of equity to offset against outright ownership in the future. I pay half rent half mortgage and that includes the service charge and buildings insurance. Its cheaper than renting and I have a bigger place than I could have got renting anyway.
The only problem is the waiting list. I was lucky because I knew someone who was selling and the H.A had this clause for it they couldn't sell it in 2 weeks then the tenant can sell their share subject to status of the person they are selling it to.
I wouldnt say its worth doing if you plan on staying at the property long term because the percentage you pay in rent is wasted money in the long run but its a good step up if you can't afford to buy outright.
Cheers
I have lived in shared ownership apartment for 2 years and think its a great way to get on the property ladder and get a bit of equity to offset against outright ownership in the future. I pay half rent half mortgage and that includes the service charge and buildings insurance. Its cheaper than renting and I have a bigger place than I could have got renting anyway.
The only problem is the waiting list. I was lucky because I knew someone who was selling and the H.A had this clause for it they couldn't sell it in 2 weeks then the tenant can sell their share subject to status of the person they are selling it to.
I wouldnt say its worth doing if you plan on staying at the property long term because the percentage you pay in rent is wasted money in the long run but its a good step up if you can't afford to buy outright.
Cheers
11-02-2009, 07:22 PM
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Only thing I will say is I have done various inspections of new builds in this sector and have seen varied build quality, but this is not restricted to H.A property. New builds are either good or very bad.
11-02-2009, 07:28 PM
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11-02-2009, 08:04 PM
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another problem that nobody's mentioned so far is that mortgage lenders don't really like or understand shared-equity schemes, so it can be hard to find a mortgage. couple that with current lending criteria (very strict!) and you will struggle if you don't have much of a deposit.
chris
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11-02-2009, 08:14 PM
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we were lucky.we bought our house 5 years ago when i was just 22 and the missus was 19.a 3 bed semi detached house with enough parking for 3 cars at half the price.were not planning on staying forever just till my missus is out of work raising the kids,then we'll look for an older property with a bit of land for the cars i'm goin to acquire over the next few years.
11-02-2009, 10:17 PM
#18
It's got nothing to do with deposit - it's got to do with what you can get a mortgage for!
I bought int a shared ownership scheme nearly two years ago (I own half the house, the housing company owns the other half. I pay mortgage on my half, and "rent" on the other half)
I could only get a mortgage for £80-£85k (single male, mid twenties, <£25k a year income) so for me, it was either a flat in a tower block for about £75-£85k, or this shared ownership. Now I have a two bed semi-detached house, about 10/11yrs old.
As I said, it's nothing to do with how much you save for a deposit - I had nearly £25k at my disposal, but that wouldn't get me shit. Sure it would be a nice lump off a mortgage, but in the area's I was looking, I wouldn't have got a house for £100-ish k.
Value on my property when I bought in 2007 was £160k - so I got a mortgage for £76, put in £4k (as I wanted to be able to keep a lump sum in case the worst happens, etc, and also pay for all the solictors fee's etc, plus I needed to buy loads of stuff). Mortgage inc contents insurance, decreasing life cover, etc comes in at £450 a month plus I pay £150 a month "rent" to the housing company that owns the land (it's a leasehold not a freehold as the company owns the land, and x % of the property at any one time, until the resident buys out the full 100%, then the land becomes theirs, and they have the freehold). So total that comes in at £600 a month - which according to mortgage lenders I can't afford. Which is tosh, cos I pay that and pay all my bills on top!
Yeah the down side is when I sell I only get 50% of the profit made on the property, but the upside is I can have a house and not a shitty tower block flat. I'm not posh or anything, but I grew up in a 5 bed fully detached house with a fuck off garden worth nearly half a mil (now), so I weren't gonna go too far down the scale and get a bedsit or scummy flat - I wanted something half decent.
As for modifications - as far as I know I can do virtually anything, but have to get approval from the housing company before doing them, but thats only for major mods - if I want to change the bathroom or kitchen, or re-decorate, or overhaul the garden I can do that at any time. Any money added to the value if they are done is mine.
Fortuantely for me, the bathroom was done two years before I moved in, the kitchen about 3yrs before I moved in, and the general plastering and redecorating was done asbout a year before I moved in, so other than move my stuff in, I havne't had to do fuck all Flooring, carpet, plastering, painting, appliances (all built in in the kitchen, so I got to keep them ) are all done, which saved me a whole lot of hassle and money!
I bought int a shared ownership scheme nearly two years ago (I own half the house, the housing company owns the other half. I pay mortgage on my half, and "rent" on the other half)
I could only get a mortgage for £80-£85k (single male, mid twenties, <£25k a year income) so for me, it was either a flat in a tower block for about £75-£85k, or this shared ownership. Now I have a two bed semi-detached house, about 10/11yrs old.
As I said, it's nothing to do with how much you save for a deposit - I had nearly £25k at my disposal, but that wouldn't get me shit. Sure it would be a nice lump off a mortgage, but in the area's I was looking, I wouldn't have got a house for £100-ish k.
Value on my property when I bought in 2007 was £160k - so I got a mortgage for £76, put in £4k (as I wanted to be able to keep a lump sum in case the worst happens, etc, and also pay for all the solictors fee's etc, plus I needed to buy loads of stuff). Mortgage inc contents insurance, decreasing life cover, etc comes in at £450 a month plus I pay £150 a month "rent" to the housing company that owns the land (it's a leasehold not a freehold as the company owns the land, and x % of the property at any one time, until the resident buys out the full 100%, then the land becomes theirs, and they have the freehold). So total that comes in at £600 a month - which according to mortgage lenders I can't afford. Which is tosh, cos I pay that and pay all my bills on top!
Yeah the down side is when I sell I only get 50% of the profit made on the property, but the upside is I can have a house and not a shitty tower block flat. I'm not posh or anything, but I grew up in a 5 bed fully detached house with a fuck off garden worth nearly half a mil (now), so I weren't gonna go too far down the scale and get a bedsit or scummy flat - I wanted something half decent.
As for modifications - as far as I know I can do virtually anything, but have to get approval from the housing company before doing them, but thats only for major mods - if I want to change the bathroom or kitchen, or re-decorate, or overhaul the garden I can do that at any time. Any money added to the value if they are done is mine.
Fortuantely for me, the bathroom was done two years before I moved in, the kitchen about 3yrs before I moved in, and the general plastering and redecorating was done asbout a year before I moved in, so other than move my stuff in, I havne't had to do fuck all
Flooring, carpet, plastering, painting, appliances (all built in in the kitchen, so I got to keep them ) are all done, which saved me a whole lot of hassle and money!
11-02-2009, 10:50 PM
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It's got nothing to do with deposit - it's got to do with what you can get a mortgage for!
I bought int a shared ownership scheme nearly two years ago (I own half the house, the housing company owns the other half. I pay mortgage on my half, and "rent" on the other half)
I could only get a mortgage for £80-£85k (single male, mid twenties, <£25k a year income) so for me, it was either a flat in a tower block for about £75-£85k, or this shared ownership. Now I have a two bed semi-detached house, about 10/11yrs old.
As I said, it's nothing to do with how much you save for a deposit - I had nearly £25k at my disposal, but that wouldn't get me shit. Sure it would be a nice lump off a mortgage, but in the area's I was looking, I wouldn't have got a house for £100-ish k.
Value on my property when I bought in 2007 was £160k - so I got a mortgage for £76, put in £4k (as I wanted to be able to keep a lump sum in case the worst happens, etc, and also pay for all the solictors fee's etc, plus I needed to buy loads of stuff). Mortgage inc contents insurance, decreasing life cover, etc comes in at £450 a month plus I pay £150 a month "rent" to the housing company that owns the land (it's a leasehold not a freehold as the company owns the land, and x % of the property at any one time, until the resident buys out the full 100%, then the land becomes theirs, and they have the freehold). So total that comes in at £600 a month - which according to mortgage lenders I can't afford. Which is tosh, cos I pay that and pay all my bills on top!
Yeah the down side is when I sell I only get 50% of the profit made on the property, but the upside is I can have a house and not a shitty tower block flat. I'm not posh or anything, but I grew up in a 5 bed fully detached house with a fuck off garden worth nearly half a mil (now), so I weren't gonna go too far down the scale and get a bedsit or scummy flat - I wanted something half decent.
As for modifications - as far as I know I can do virtually anything, but have to get approval from the housing company before doing them, but thats only for major mods - if I want to change the bathroom or kitchen, or re-decorate, or overhaul the garden I can do that at any time. Any money added to the value if they are done is mine.
Fortuantely for me, the bathroom was done two years before I moved in, the kitchen about 3yrs before I moved in, and the general plastering and redecorating was done asbout a year before I moved in, so other than move my stuff in, I havne't had to do fuck all Flooring, carpet, plastering, painting, appliances (all built in in the kitchen, so I got to keep them ) are all done, which saved me a whole lot of hassle and money!
I bought int a shared ownership scheme nearly two years ago (I own half the house, the housing company owns the other half. I pay mortgage on my half, and "rent" on the other half)
I could only get a mortgage for £80-£85k (single male, mid twenties, <£25k a year income) so for me, it was either a flat in a tower block for about £75-£85k, or this shared ownership. Now I have a two bed semi-detached house, about 10/11yrs old.
As I said, it's nothing to do with how much you save for a deposit - I had nearly £25k at my disposal, but that wouldn't get me shit. Sure it would be a nice lump off a mortgage, but in the area's I was looking, I wouldn't have got a house for £100-ish k.
Value on my property when I bought in 2007 was £160k - so I got a mortgage for £76, put in £4k (as I wanted to be able to keep a lump sum in case the worst happens, etc, and also pay for all the solictors fee's etc, plus I needed to buy loads of stuff). Mortgage inc contents insurance, decreasing life cover, etc comes in at £450 a month plus I pay £150 a month "rent" to the housing company that owns the land (it's a leasehold not a freehold as the company owns the land, and x % of the property at any one time, until the resident buys out the full 100%, then the land becomes theirs, and they have the freehold). So total that comes in at £600 a month - which according to mortgage lenders I can't afford. Which is tosh, cos I pay that and pay all my bills on top!
Yeah the down side is when I sell I only get 50% of the profit made on the property, but the upside is I can have a house and not a shitty tower block flat. I'm not posh or anything, but I grew up in a 5 bed fully detached house with a fuck off garden worth nearly half a mil (now), so I weren't gonna go too far down the scale and get a bedsit or scummy flat - I wanted something half decent.
As for modifications - as far as I know I can do virtually anything, but have to get approval from the housing company before doing them, but thats only for major mods - if I want to change the bathroom or kitchen, or re-decorate, or overhaul the garden I can do that at any time. Any money added to the value if they are done is mine.
Fortuantely for me, the bathroom was done two years before I moved in, the kitchen about 3yrs before I moved in, and the general plastering and redecorating was done asbout a year before I moved in, so other than move my stuff in, I havne't had to do fuck all
Flooring, carpet, plastering, painting, appliances (all built in in the kitchen, so I got to keep them ) are all done, which saved me a whole lot of hassle and money!very interesting!!
thanks for that thrush, made me understand a bit more!!
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