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gorilla

Part Rent Part Buy

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recently viewed a 3 bed house which needs alot of updating, new kitchen, bathroom to start with. It is on for £150k, but we would buy 50%..

the updating would probably cost around £30k, possibly a bit more

would it be worth buying something like that? or waste of money/time?

average house price in our area for a 3 bed £200k rip off

we can only get a £120k mortgage, that would not buy anything here.. so that is why we tried part rent part buy..

would you buy a property like this?

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would not get involved

who owns the other 50 %?

what happens if you want to sell- do you have to sell to the enttity taht owns the other 50%?

why buy 50% of something that is 50% overpriced?

another con trick to get people to pay inflated prices.

be patient in 2 years you will buy the place for 50% and with nothing to rent.

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recently viewed a 3 bed house which needs alot of updating, new kitchen, bathroom to start with. It is on for £150k, but we would buy 50%..

the updating would probably cost around £30k, possibly a bit more

would it be worth buying something like that? or waste of money/time?

average house price in our area for a 3 bed £200k rip off

we can only get a £120k mortgage, that would not buy anything here.. so that is why we tried part rent part buy..

would you buy a property like this?

Have you tried making some offers based on the mortgage you can get? The EAs are always harping on about it being a buyers market so why not try it on a few.

Don't know the details and your personal circumstances but I'd walk on a part ownership. Chances are you'll end up carry all the risk and none of the benefit.

Good luck,

Grant

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These schemes last became popular in the late 80's, around the time Rent-to-Buy became popular.

Quite frankly they're both symptoms of a very sick housing market.

You say the place you're buying cost £150k, you pay 50%.

So if the price falls £25k (16%), you lose 25/75k, 33% of your investment.

Just be aware of how the gearing will hurt you in a falling market.

And prices in parts of London are falling fast right now, so don't say this won't happen.

I would leave well alone.

And get out of the mindset that you have to own property to be somebody.

Right now the people who are renting are the smart ones...

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A few months back I read an article by a journalist who got caught in part-ownership in the early 90's.

People convinced him getting on the ladder was the correct thing to do.

He ended up with years of negative equity, being forced to live in a property he hated, and unable to buy far better properties at lower prices because he couldn't get out of the deal.

Complete nightmare.

Anyone remember this story, I can't find it?

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Sharew ownership has always been a bad idea.

For a start if you get behind with yout mortgage you are repossessed by the mortgagee; if you get behind with your rent possession proceedings are commenced by the housing association. If you want to sell the housing association can "vet" the prospective purchaser. You do now have the same rights as an owner of the complete freehold of the property ie. right to make alterations and additions etc. and neither do you have the rights of a tenant, ie right to repairs; security of tenure etc.

Keep away from them is my opinion. If you do get involved make sure you read the small print carefully and get yourself a good lawyer.

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recently viewed a 3 bed house which needs alot of updating, new kitchen, bathroom to start with. It is on for £150k, but we would buy 50%..

the updating would probably cost around £30k, possibly a bit more

would it be worth buying something like that? or waste of money/time?

average house price in our area for a 3 bed £200k rip off

we can only get a £120k mortgage, that would not buy anything here.. so that is why we tried part rent part buy..

would you buy a property like this?

I raised this subject quite recently, having investigated myself and did quite a lot of research. Here is the thread, which I hope you find useful:

http://www.housepricecrash.co.uk/forum/ind...76entry173776

VP

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A few months back I read an article by a journalist who got caught in part-ownership in the early 90's.

People convinced him getting on the ladder was the correct thing to do.

He ended up with years of negative equity, being forced to live in a property he hated, and unable to buy far better properties at lower prices because he couldn't get out of the deal.

Complete nightmare.

Anyone remember this story, I can't find it?

Journalist was Patrick Collinson, editor of Saturday Guardian's Jobs And Money section. Hope that helps. PS I am a keyworker but wouldn't touch part rent part buy with a long pole. If I only buy half the place, why should I be liable for the wholee cost of repairs, etc? Sounds like you get the worst aspects of buying with none of the benefits of renting - expensive.

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i will stay clear of part buy part rent..

will continue renting and saving for the crash.. ;):)

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Just out of interest – what does the small print say happens if you want to sell in the future, this sort of thing -

- Who does the valuation?

- Is there a ratchet, e.g. value is purchase price or current valuation, whichever is higher?

- Can the housing association refuse the sale, if so on what grounds?

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Spline :)

selling a part rent part buy property is not the same as if you had brought it through estate agent..

we have been on the MOAT list for a few years now, have viewed a few properties and expressed interest.. but both occasions we have been turned down..

Not enough children for the size of property, not in desperate need of rehousing..

they work the same as a housing ass/ council do..

the size of property you are allowed to buy is based on the size of family

also the person who is most in need of housing will be offered the property to buy..

After you have expressed your interest in a property, your info will ba noted down (along with the hundreds of other peoples) MOAT will then have a meeting to discuss who should be entitled to buy the property..

You sell you property through MOAT, but if they cannot sell it within two months then it gets handed over to an EA after that period

also i have heard that you need to earn a ridiculus amount a year as a single applicant to buy in this way..

waste of time/money i have begun to think

i am not sure about the valuation or the purchase price/ current valuation.

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I was a bit bored yesterday so I investigated a similar scheme being offered by Crest Nicholson near me.

Not really shared ownership, but they would defer payment on 25% of the property price until you sold it on. Effectively an interest free loan for 25%. Cheap living I thought? No - here are my sums:

2 bed Flat = £155k

Amount to finance = £116,625

10% deposit paid = £104,625 to mortgage:

Approx. £475 to £525pcm - Sounds OK!

But - insurance fees, £750p/a service charge, £200p/a ground rent, £50+ lost interest pcm on deposit makes it a lot more expensive! Not forgetting mortgage arrangement fees, stamp duty, exposure to interest rates, market conditions and whetever else is in the small print of the agreement...

I currently rent a barn conversion for £600pcm. Crest Nicholson know where they can stick their 'cookie cutter' flat!

Edited by jaffa

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Thanks gorilla and jaffa :) – I guess the attraction is that you offload the risk of falling HPI onto the other part owner, but they try to protect themselves with a less than transparent contract and retain some control over it, and then there’s the service charge, etc. It does seem from some of the other posts that you don’t really get the advantages of being an owner either.

Edited by spline

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I was a bit bored yesterday so I investigated a similar scheme being offered by Crest Nicholson near me.

Not really shared ownership, but they would defer payment on 25% of the property price until you sold it on.  Effectively an interest free loan for 25%.  Cheap living I thought?  No - here are my sums:

2 bed Flat = £155k

Amount to finance = £116,625

10% deposit paid = £104,625 to mortgage:

Approx. £475 to £525pcm - Sounds OK!

But - insurance fees, £750p/a service charge, £200p/a ground rent, £50+ lost interest pcm on deposit makes it a lot more expensive!  Not forgetting mortgage arrangement fees, stamp duty, exposure to interest rates, market conditions and whetever else is in the small print of the agreement...

I currently rent a barn conversion for £600pcm.  Crest Nicholson know where they can stick their 'cookie cutter' flat!

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i wouldnt go near any new builds, especially by Crest Nicholson ..

where i live we have a relativly new 'village' which is growing and growing.. they built many of the properties there.

not only are they at rediculus prices, but poorly built.

On crap land, (myself and others went for a walk through it, was like a swamp mixed with clay)

so there has already been subsidence.. which i have heard they have refused to deal with (even though the property affected was less than a year old and under a 10yr garauntee) so one family is taking them to court..

the walls are so thin u can hear the conversations of the neighbours, even them going to the toilet.. YUK!

the properties are so tiny! u would never get a car in the garages, hece why they are all parked outside..

one house building company were on TV a while back (forgotten their name) and were critisized, so myself, partner and inlaws went to view a flat built by same company. (no intention to buy whatsoever)

it was a 2 bed flat (one and a half bedrooms, 2nd room may aswell have been a cupboard) and far too small!

well if i remember it was going for around £180K, and they were so desperate to sell they were including the carpets, paying legal fees and offereing months worth of free mortgage..

here is an example of a desperate sale in that village

http://www.rightmove.co.uk/viewdetails-363...pa_n=1&tr_t=buy

there are many more 'offors' wow weeeee lol

i will definately not be buying in that village!!

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recently viewed a 3 bed house which needs alot of updating, new kitchen, bathroom to start with. It is on for £150k, but we would buy 50%..

the updating would probably cost around £30k, possibly a bit more

would it be worth buying something like that? or waste of money/time?

average house price in our area for a 3 bed £200k rip off

we can only get a £120k mortgage, that would not buy anything here.. so that is why we tried part rent part buy..

would you buy a property like this?

50% ownersip saves you 25% of the price.

Sounds like you are dropping your trousers and smiling.

they share the risk.

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There are a lot of new build shared ownership schemes starting up in some of the more upmarket developments in central London.

Notting Hill HA (incl St George's Wharf at Vauxhall Bridge)

http://www.nottinghillonline.com/pid406_Ne...ild_Schemes.htm

Threshold KeyHomes (including two schemes in London SW1 near Parliament and at Chelsea Bridge Wharf)

http://www.thresholdkeyhomes.co.uk/

Newton HA (lots of new build around the new Arsenal Stadium)

www.shared-ownership.co.uk

As usual they are mainly reserved for council/HA tenants and so called 'key'workers - some like the St George's scheme however are open to any first time buyer. Saying that Notting Hill are selling these apartments without flooring, light fittings, mirrors, fixtures etc so you would have to do a fair bit of work before moving in (& no parking!). More will no doubt come on stream - can't see only 30 shared ownership properties in Westminster solving the affordable housing shortage there though in the short term!

Anyone think these are safer bets longterm - location location?

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i wouldnt go near any new builds, especially by Crest Nicholson ..

where i live we have a relativly new 'village' which is growing and growing.. they built many of the properties there.

not only are they at rediculus prices, but poorly built.

On crap land, (myself and others went for a walk through it, was like a swamp mixed with clay)

so there has already been subsidence.. which i have heard they have refused to deal with (even though the property affected was less than a year old and under a 10yr garauntee) so one family is taking them to court..

the walls are so thin u can hear the conversations of the neighbours, even them going to the toilet.. YUK!

the properties are so tiny! u would never get a car in the garages, hece why they are all parked outside..

one house building company were on TV a while back (forgotten their name) and were critisized, so myself, partner and inlaws went to view a flat built by same company. (no intention to buy whatsoever)

it was a 2 bed flat (one and a half bedrooms, 2nd room may aswell have been a cupboard) and far too small!

well if i remember it was going for around £180K, and they were so desperate to sell they were including the carpets, paying legal fees and offereing months worth of free mortgage..

here is an example of a desperate sale in that village

http://www.rightmove.co.uk/viewdetails-363...pa_n=1&tr_t=buy

there are many more 'offors' wow weeeee lol

i will definately not be buying in that village!!

Agreed! We used to rent a Crest Nicholson 'home' - spent more days waiting in for workmen to repair the damn thing then I did at work. Needless to say, I didn't renew that tenancy agreement after 6 months...

Edited by jaffa

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  • 315 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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