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Buying an affordable home and reselling

(6 Posts)
LazySusan11 Fri 20-Jan-17 10:45:52

We have seen a house we like however we've been told it's part of an affordable housing scheme so although we will own 100% of the house we could only sell it for 56% of the open market value.

Just wondered if there's a set amount of time to have to live in it before you can sell it for the full market value. We're looking for a forever home but you never know what might happen so want to have all info.

IamSwitzerland Fri 20-Jan-17 11:00:40

That's the point of the scheme though isn't it? To get people to buy "homes" that they live in and look after and hopefully generate a cohesive community. Presumably the house is cheaper to buy initially than open market value so a good deal?

Wouldn't that be lovely? Moving again may not be as easy but you get the benefit of stability hopefully. Obviously there is always the chance of bad neighbours or whatever but far less than if you were surrounded by investment properties designed to generate maximum profit for minimum input.

This is an active step towards reducing the greed of our recent property development trend, to my mind a very welcome one. Your solicitor is the only one who can really advise you on the details because they may vary from scheme to scheme.

I would consider this as an option (if you want a long term home as opposed to a rung on the ladder) and if realising a profit from your home is an aim then do a 10 year plan putting money elsewhere so you have the option to move of need be.

Riderontheswarm Fri 20-Jan-17 11:12:22

I don't think you should ever be able to sell it at market value. You probably will be able to after a while. But it would be a much better scheme if affordable housing actually was affordable housing and not just a cheap way for the first owner to make a fortune. If you can buy the house for 54% of its market value why can't the next person? You would still make a profit. The same % profit as all other house owners in your area. You just wouldn't make a killing by basically getting half the house for free and the house would remain affordable for another family who needs affordable housing. And if you stay in it for life you have got half the house for nothing. Such a scheme would provide affordable housing and keep affordable housing.

LazySusan11 Fri 20-Jan-17 11:14:59

It's in such a lovely location and you have have connections to the area which I do, only issue is it's not very big so if we loved it and chose to stay for many years could we extend or is planning permission on affordable houses a no?

BreezyThursday Fri 20-Jan-17 13:24:35

Why should you ever be able to sell it for full market value? Seems to go against the whole point of such schemes.

LazySusan11 Fri 20-Jan-17 13:40:51

True, it should remain an affordable house. It's a lovely area, we don't qualify anyway as we have ours to sell. Thanks for the info

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