Buying property - Part buy/part rent ??

steveJ

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Hey everyone.

Im looking into buying my own place. Apartment hopefully with a balcony, beautiful view, Flat screen t.v, fridge stacked with beers.......

Sorry drifted off there. Where was i ? oh yeah. Ive been looking at a few places, but the prices obviously are way to high to even think about a deposit at the moment. I have a chalet/holiday home that i bought when i was 21 and am now ready to take the plunge with an apartment.

The question i have for you enlightened people is, what do you think of part buy/part rent ??

Any experiences ? anyone in the same situation ? Any good websites for info on mortgages in general ?

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If i can find a place, you are all more than welcome to the house warming party to check out the balcony, beautiful view, flat screen t.v, fridge full of beers......sorry.

Gem7321

Are you talking about the newbuild shared ownership scheme? We looked into this a while ago but decided not to go ahead because they were refusing to budge on the price when the market was crashing around our ears. And now we're ready to look at it again there's none around here! Most mortgage providers still lend for this scheme so you should be OK.

Esme

I had a look a few years ago at buy part, rent part but you had to be on the council waiting list already, not sure if this is still the case.

Gianni

Are you talking about shared ownership?

Jon_1984

My Best friend and I (with respective partners)bought similar size/value flats (circa £125K in price) about a year apart a couple of years back.

They had no deposit and went part buy/part rent (50% each party)

We managed to get £10K deposit together for ours and got a normal 5 year fixed mortguage.

We are both paying £560 a month but they will own a lessor share of their property, only benefit from 50% of the value of any improvements when they sell and face certain restrictions on what they can and cannot do without permission (certainly more restrictive than we do).

I would say go for if your circumstances dictate you must, but make sure you are fully aware of all the contractual restrictions prior to signing.

I would also say find yourself a good independent mortguage advisor and find out what options are available to you.:thumbup1:

HayleyB

My husband and I are in the process of buying a shared ownership (new build homebuy) at the moment.

We have gone through Leeds B.S however the rates are quite high at 7.89 %. I know that a lot of banks view shared ownership buyers as higher risk (don't know why?) and therefore their rates are always higher.

We also only have a 10% deposit, most banks will only do 85% loan to value on a brand new property and I think Leeds are the only one out there that will do 90%.

We decided on buying 40% of the property as if house prices come down we can buy the remaining 60% at a lower value than we paid for the first 40%. It would be worth asking what the lowest share you can buy is just to get you started!!

After a lot of research I have found that if you make any improvements or build any extensions (obviously with permission from the housing association) the property is still valued at the price before improvement, therefore you will gain from the value added rather than the housing association.

I think it is a great way to get on the housing ladder! We have 2 young children and working full time is just not an option for me at the moment.

Obviously make sure you read properly into the terms set by the H.A, we can buy 100% of our house but sometimes you can only buy up to around 80%.

Sorry to waffle on!! I know quite a lot about this as have spent months trawling the internet!!!
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Hope this helps!!