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You Couldn't Make It Up...

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I know many first time buyers can not afford a house or even a flat on their own and most are looking at a house/flat at £66.000 but for first time buyers who are a couple or two friends looking to get on the housing market, is £90.000 to £95.000 for a two bedroom house affordable?

Im looking at making an action plan for first time buyer houses and would apreciate some advice on the questions i have asked.

I was looking into a new way to help first time buyers and came up with the idea, that you purchase the house for iether £90.000 or £95.000 (which ever one we sell at) but the value of the house will be set at £125.000 this means that if you purchase the house at £90.000 and the hosue value is £125.000 your deposit is £35.000 but that is what we pay, i.e we tell the morgage people that you have payed £35.000 but you havent, so you get your morgage and when you sell your house, we get £35.000 back.

The houses are made of good quality, more spaceious and are selling on other sites for £190.000.

Also would you first time buyers prefer to buy the house with or without carpets and or fully furnished so that the day you move in it has every thing that you would need like all your cutlery, bed, towels etc?

This site could do with some sensible suggestions for FTBs.

http://www.houseweb.co.uk/house/forum/Foru...TML/000099.html

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Sorry, can someone decipher this babble please ? I don't understand having read it 3 times...

The gist of it is this:

You buy my house for 125k but only pay 90k upfront, and agree to pay the balance (35k) when you sell the house at a future date. I will tell the bank you bought it off me for 125k, so they will believe that you put down a 35k deposit, and will therefor give you a mortgage (which they might not have done if you had bugger all deposit/couldn't meet the lending criteria).

It is a bit like the Government scheme to help FTBs...............

So it is a con (desperation?) to try and keep prices inflated. :)

Probably best to read the fine print very carefully if signing up to one of these.........

CF

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Guest Charlie The Tramp
You buy my house for 125k but only pay 90k upfront, and agree to pay the balance (35k) when you sell the house at a future date. I will tell the bank you bought it off me for 125k, so they will believe that you put down a 35k deposit, and will therefor give you a mortgage (which they might not have done if you had bugger all deposit/couldn't meet the lending criteria).

And the charge would be obtaining a Pecuniary advantage by deception.

At the present time there could be many thousands who fit this category. :)

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It amounts to having two mortgages, one from th ebank of 90k, the other from the developer of 35k, interest free. Oh, and small detail, you don't tell one lender (the bank) that the £35k of 'apparent' equity isn't yours at all, but the developers, so their loan isn't secured against the full value of the property as they thought, but 35k less. The cool thing is when it all goes tits up you get free board and lodgings at Her Majesty's pleasure for fraud. Winner!

Edited by Sledgehead

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Like all shared ownership doesn't it work like this:

Say you buy 50% equity on £100k house, so you pay £50k. The developer owns £50k. If prices double, when you sell you pay the developer 50% i.e. £100k. If prices crash and half, you still owe the developer £50k.

So, either 50% or the original amount - "which ever is greater"!

You loose out either way!!!!!!!!!!!!!!!!

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Like all shared ownership doesn't it work like this:

Say you buy 50% equity on £100k house, so you pay £50k. The developer owns £50k. If prices double, when you sell you pay the developer 50% i.e. £100k. If prices crash and half, you still owe the developer £50k.

So, either 50% or the original amount - "which ever is greater"!

You loose out either way!!!!!!!!!!!!!!!!

Where do I sign

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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