Part buy part rent?

[Wafer_Thin_Ham]

Anyone done one of these?

Seems to be the only way I'll be able to get on the property ladder round these parts.
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[Robby]

I know a guy that did.

Horrendously expensive. He went for 50% ownership. It was a brand new flat, so way overvalued in the first place. The vendor wasn't open to any haggling, so he paid the full list price. The rent on the other 50% is far more than the mortgage part, seeing as its rent and that tends to cost more than a mortgage.

He can't get a great mortgage rate, because his total outgoing are too high (rent+mortgage). Selling is a ballache, and if you want to buy more equity it's done at current market rate, so no gain there.

Save up more.

[Rogerborg]

Weird situation, might make insurance and liability for repairs and such a puzzler.

Aside, you should probably feel free to lie through your teeth to get a mortgage that you reckon you can afford. The banks still don't (really) care, as long as their money comes in every month. The sheer volume of genuine scammers out there who get mortgages with fake identities and no intention of ever paying a penny will effectively shield you from any investigation.
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[J4mes]

My missus owns one, but was are selling it as we are moving in to my house instead.

So,

It's 50/50, the mortgage being £400 a month and the rent being £200 a month-ish on a £150K property. When we had the valuation done 2 weeks ago the RICS surveyor told us they are not allowed to up the value because it's a part share property. Sure, there is the "new house premium" but ours has been valued in line with all the other properties in the area. We were allowed no input on the price. He decided what it was worth, that's what it is up for.

We have to offer it to other "housing association" people first for 12 weeks, these people are found by the firm who own the other 50%. They are not allowed to make offers, has to be full asking price. After the 12weeks we can put it on the open market at whatever price we want.

You insure the whole building, you pay for any repairs or upgrades but anything major is covered by the 10 year NHBC warranty.

Can't sublet any rooms, or let it out and go somewhere else.

There are generally "other fees" such as parking area maintenance which costs us £12 a month or something daft like that. Not that we've ever seen anyone do it

Don't think "housing association, urgh, skanks" because our neighbours are really quite nice people - some are retired, some key workers (my missus got one due to NHS job) some are just people on low wages or with big families. (the people next door have 5 children, but they are all very pleasant and the parents are really friendly)


Obviously this is all the terms and experiences for us, but it could be completely different for other places/ properties.


Only reason we are moving in to mine is because mine has a garage, and 3 double bedrooms whereas hers is 2 double rooms and only 1 parking space.

If you have any more questions, give us a shout - might be able to help

[Clanger]

I know someone that has, and it's gone tits up just three years later. Something to do with the % that was written on the contract. It was written into the small print that if they sold the property within 3 years they would have to pay a % back to the developer, the problem was there were no % details, and the developer tried to get 70% back from the sale price...thus making it a huge farce.

IF you do go down that route, make sure your solicitor reads the small print VERY carefully before you sign anything. I think the idea is that you buy with the intention of staying in the property from 8-10 years - only then the scheme is good for your pocket.

Beware!
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[Polarbear]

[Polarbear]

I've looked into this as an option for my daughter, and no she won't be going down that road. I thought it was a rip off and that was before I saw Clangers input.

I have no answer for people who have to find 20% = deposit though, I really wish I did. I makes me fuckin cry to see youngsters trying to get on the property ladder for the stupidy overpriced houses in the UK.

Why do they need to be so expensive. I own my own house but it means nothing to me if its worth 1p or 1000000p, as long as the next one I buy is similarly priced.

Wipe 3 zeros off all house prices and give our kids a chance. Or limit landlords to 3 propertys so they can't buy up every house going.
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[Darthspence]

i know its shit, me and the missus got two kids( wee girl 18 months and a wee laddy 5 weeks) but have to staywith her parents as we can get a hoose cause we dont have 20 0dd grand for a deposit nor could we afford 500squid a month for rent

[lukas222]

[Imonster]

[the95th]

either rent or buy. Not both.
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[Wafer_Thin_Ham]

[fatpies]

[Robby]

[Wafer_Thin_Ham]

[Robby]

[carvell]

A lot of people seem to be of the opinion that you can only get a mortgage with a 20% deposit at the moment.

I've just bought a house, with a 10% deposit. People kept telling me "oooooh the banks don't lend to anyone, you need a 20% deposit".

Pretty much every bank website that I looked at were allowing 10% mortgages - you'd probably struggle to find a bank that won't give you a mortgage with just a 10% deposit.

Obviously you get a slightly worse rate (and it really is only slightly worse), but that's pretty irrelevant, given that everyone re-mortgages every 5 years odd anyway.
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[Kwaks]

why not go the interest only route?

yeah you need a large deposit, 25%, but payments are affordable and you can make overpayments. for a 240k house with 25% deposit i was looking at sub 300 per month, you gain with any equity increase and leaves you flexible when money is tight. all the bank wanted to hear is that i would pay 100 into an isa each month, like that would have cleared it
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[pepperami]

My daughter has gone down the part rent/part buy route and it has worked well for her.
she has been able to get a place in a nice part of London so that`s a plus when she finally decides to move on.
She is going to sit tight for a few years and that will help because she will have accumulated a bit more equity.
she would of never been able to get on the property ladder without this route.

We do have one worry and that`s if the owners/partners/trust will try to stitch her up over selling price when she finally moves on.
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[Kwaks]

The problem wth part ownership, say 50%, is you only gain 50% of the equity. So the longer you stay the further away you get from where you want to be if you dont save independantly.


cant afford to get on the ladder now, find yourself in the same postion in 10 years.

these share schemes dont work, buy what you can afford, interest only or repayment, dont allow someone to piggy back your equity because you will need it if you ever decide to move on
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I AM NOT A FAST RIDER!!!!!!!!!