Buying a house

[Joe_Fox]

Hello,

Does anyone know of anyone who has bought a houes via the HomeBuy scheme?

I was looking at the Ownhome product on the following page and it seems a decent idea.

http://www.communities.gov.uk/housing/buyingselling/ownershipschemes/homebuy/openmarkethomebuy/

Basically I'm looking for a bit of advice. Are these schemes a good or bad idea for someone trying to get on the property ladder?

Also, a specific question - if I got a house via the Ownhome product, would I be able to rent a room out to a private tenant? If so, would I keep all their rent (below £4250) or would I have to give whatever percentage of the value of the house I had in a loan, to the government?

 

[The Major]

If this is a shared equity scheme, which is what it looks like, then we bought our house that way.

The rent on the rented part of your home goes up every year so it's a good idea to buy as much as you can at the start, and buy the rest as soon as you can.

I have to say the housing association were really helpful. I can't speak highly enough about them.

 

[Nottingham Fox]

I'm doing this as we speak. Although i'm not paying additional rent on the 25%

The developer i'm buying from is stumping up 25% which I will have to repay in 10 years time. I can pay it sooner if I have such funds available. If my house price remains the same at the end of the equity loan, I pay them the same figure, if it goes up I pay them 25% of that figure, or if it goes down in price, I pay them 25% of that and so on.

It's certainly helped me get a foot on the ladder !!

 

[Brauny Blue]

How do you stand with any major repair work. Do they contribute a percentage if anything happens?

 

[Joe_Fox]

So how does it work? Say I found a house on the scheme that cost £175,000.
Do I get a loan from the government for 40% of the price (£70,000) and then find a mortgage of £105,000?

Then in essence I have two mortgages - the loan and the mortgage.

From what I can see there is no interest charged on the equity loan for the first five years but there will be a charge of 1.75 per cent from year six and 3.75 per cent from year eleven onwards.

Can I pay more of this off before the interest hikes up?

Looking for advice - so far you've been helpful so thanks...

 

[highland fox]

I bought a house via shared ownership and the biggest problem I had was trying to sell it,people were put off when they found out it was shared ownership.

 

[highland fox]

How do you stand with any major repair work. Do they contribute a percentage if anything happens?

Mine was with Leicester housing Association and they contributed absolutely **** all

 

[bocadillo]

Might be worth having a read of this webpage.


What was it you said? A house?

Sorry. Ignore me.

As you were.

 

[Darth Vodka]

am thinking of buying a repossessed house in N London in the autumn...

never had a mortgage before...but i can get a staff discount mortgage...4 times the salary

 

[FIF]

In this climate repossessed houses that need little work can be the best investment to make.

 

[Darth Vodka]

In this climate repossessed houses that need little work can be the best investment to make.

gonna buy one that needs all of the plumbing doing

 

[spionfox]

In this climate repossessed houses that need little work can be the best investment to make.

Unless the embittered evictees decide to put the windows in one night out of spite.

 

[Darth Vodka]

Unless the embittered evictees decide to put the windows in one night out of spite.

i'm admiring the prose there

that's quite poetical

alliteration and then a rhyme

 

[Macky]

i'm admiring the prose there

that's quite poetical

alliteration and then a rhyme

Make your mind up DV, is it poetical or prose? It can't be both.

 

[FIF]

Unless the embittered evictees decide to put the windows in one night out of spite.

Covered under insurance. :icon_wink

 

[Darth Vodka]

Make your mind up DV, is it poetical or prose? It can't be both.

ha ha

erm...it's prose that's poetical

Ensligh GCSE = B

:icon_redf