From Bloor Homes web site / BloorHomesStart
"Ideal for First Time Buyers or existing owners
The property is 100% yours (This is not Shared Ownership)
No rent to pay
No Contract Deposit required
BloorHomesStart is a new and exciting scheme by BloorHomes which gives you the chance to own your new home. You pay 75%** of the price before you move in, then pay 25%**of the current value of the property when you sell or you can settle in full at any time*
A typical 4 bed 3 storey Mews priced at Â£155,950 You pay Â£116,962.50 (75%) now, and a Bloor company finances the 25% balancing payment until the time you sell (for a maximum of 15 years)*
*Offer available on selected plots - subject to applicants status. A nominal reservation fee refundable on exchange of contracts may be levied. Typical example: Purchase a property valued at Â£155,950, 75% (Â£116,962.50) is payable at the time of purchase. You then have up to 15 years to pay the 25% balance at current market value at the time of repayment, this is secured by a second mortgage. e.g. If the property is sold or transferred for Â£165,950 then 25% (Â£41,487.50) is payable to the company plus costs, likewise if the property is sold or transferred for Â£145,950 then 25% (Â£36,487.50) is payable to the company plus costs. Not available with any other offers. YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS OR OTHER LOAN SECURED ON IT. BE SURE THAT YOU CAN AFFORD THE REPAYMENTS BEFORE ENTERING INTO A CREDIT AGREEMENT. Terms and conditions available on request and any loan arrangements must be made through Bloor Homes recommended Independent Financial Adviser.
**Subject to particular Development and applicants status"
Intersting shared risks / shared rewards type approach - not sure what to make of it. Certainly lowers the costs of buying entry but still have to pay for it in the long run. However, it does seem on the face of it that, in effect, you get to stay in 25% of the property 'mortgage deferred' for up to 15 years.
What do you reckon?