Part Ownership Housing

[saint_stevo]

Anyone do it? Pitfalls?

[Crouchie's Lawyer]

You only own half the house. While the property price goes up, so does the cost to purchase the remaining 50%. While there are a lot of banks who accept this now, there are still a few which are funny and wont give mortgages.

 

If you and the Mrs are thinking of buying, the best advice (as a mortgage adviser) would be sit tight, save like buggery so you get a big deposit and in 6 months or so, houses will be cheaper.

[Guy]

A more limited range of mortgauges is the major factor.

 

Some Part Ownership schemes have an expensive rental rate for the remaining percentage owned by the Housing Association, others are much cheaper.

 

Another downside is a possible stigma attached to certain developments if it's considered a bit too 'council' rather than a majority private estate.

 

When it comes time to sell you usually have to give the housing association first refusal to find a buyer at a price decided by an assessor of their choosing, unless you can get a short term mortgauge to buy the remaining percentage and sell on the open market (perhaps unlikely in the current climate).

 

I currently own a flat at 70%, I could have just about afforded a similar flat at 100% market rate a year ago but would be stuffed if the mortgauge rates go up significantly. If the market collapses I can also pick up the other 30% for a song...

[Jillyanne]

You only own half the house. While the property price goes up, so does the cost to purchase the remaining 50%. While there are a lot of banks who accept this now, there are still a few which are funny and wont give mortgages.

 

If you and the Mrs are thinking of buying, the best advice (as a mortgage adviser) would be sit tight, save like buggery so you get a big deposit and in 6 months or so, houses will be cheaper.

 

Mortgage Advisor in don't do it as we will lose money shocker.

[saint lard]

A more limited range of mortgauges is the major factor.

 

Some Part Ownership schemes have an expensive rental rate for the remaining percentage owned by the Housing Association, others are much cheaper.

 

Another downside is a possible stigma attached to certain developments if it's considered a bit too 'council' rather than a majority private estate.

 

When it comes time to sell you usually have to give the housing association first refusal to find a buyer at a price decided by an assessor of their choosing, unless you can get a short term mortgauge to buy the remaining percentage and sell on the open market (perhaps unlikely in the current climate).

 

I currently own a flat at 70%, I could have just about afforded a similar flat at 100% market rate a year ago but would be stuffed if the mortgauge rates go up significantly. If the market collapses I can also pick up the other 30% for a song...

 

 

I have friend currently trying to sell theirs,the housing association are doing absolutley zilch to find a buyer yet they won't let them put the place on the market with any estate agent.

 

the portfoilio of propective buyers the the association has is tiny,hence the property hasn't been viewed in months.