ChatterBank0 min ago
Part Buy Part Rent Scheme
3 Answers
How does this work please and what sort of deposit is needed. I know it depends on the property but a rough idea of % ..trying to help a family member here..
Answers
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When we did it we needed a £2500 deposit and the money to pay all fees and the first 3 months rent in advance.
A word of warning though read the small print about what fees are charged when buying extra shares - we had to pay all our fees plus their fees plus a new survey and its at market value so if the house increases in value its the new value not the original value that the share is based on.
A word of warning though read the small print about what fees are charged when buying extra shares - we had to pay all our fees plus their fees plus a new survey and its at market value so if the house increases in value its the new value not the original value that the share is based on.
This might help:
https:/
This is from a commercial company (Share To Buy, which is a mortgage broker) but is far more detailed:
https:/
https:/
This is from a commercial company (Share To Buy, which is a mortgage broker) but is far more detailed:
https:/
the old scheme didnt work very well, and I dont know if it has changed. see above
Cost £40 000 ( yes that old ) - you could buy 25% - 50% etc and get a mortgage on that and on the remainder - pay rent. The idea being that the mortgaged part made money for you....and you paid less 'rent' ( dead money ) but still paid a mortgage as well.
and in practice people got locked into a part ownership scheme and cd nt get out to another house with 100% ownership altho that was NOT the goal when it was started.
To sell - you had to "step up" to 100% ( oo-er!) - with the party I was assisting - we stepped up to 100% and then stayed and didnt move.
Be careful about giving the deposit to the helpee - it may be counted as his savings when it comes to housing benefit - AND on selling - his capital also bad news for benefits ( as in you dont get any)
Check Dyer v Dyer
https:/
which I used to devastatingly effect when he sold
( I cd clearly show not by chance I had lent the money so it was never his)
erm and we didnt use that system again
Instead - - I have supplied the deposit and paid part of the mortgage. - and insisted a room is sublet to generate income to pay the mortgage ( now NOT tax deductible)
Bit of a technical answer here
and if you try "oo I cant make my way foo your hieroglyphs as usual PP yeah" - then - - - you will lose money
Cost £40 000 ( yes that old ) - you could buy 25% - 50% etc and get a mortgage on that and on the remainder - pay rent. The idea being that the mortgaged part made money for you....and you paid less 'rent' ( dead money ) but still paid a mortgage as well.
and in practice people got locked into a part ownership scheme and cd nt get out to another house with 100% ownership altho that was NOT the goal when it was started.
To sell - you had to "step up" to 100% ( oo-er!) - with the party I was assisting - we stepped up to 100% and then stayed and didnt move.
Be careful about giving the deposit to the helpee - it may be counted as his savings when it comes to housing benefit - AND on selling - his capital also bad news for benefits ( as in you dont get any)
Check Dyer v Dyer
https:/
which I used to devastatingly effect when he sold
( I cd clearly show not by chance I had lent the money so it was never his)
erm and we didnt use that system again
Instead - - I have supplied the deposit and paid part of the mortgage. - and insisted a room is sublet to generate income to pay the mortgage ( now NOT tax deductible)
Bit of a technical answer here
and if you try "oo I cant make my way foo your hieroglyphs as usual PP yeah" - then - - - you will lose money
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