Do you know anything about or have you bought a new house?..need to pick your brains....

[PinkChick]

we have seen the ideal house for us/my business, it was more than we could/wanted to pay, it is 5 minutes from were we live so great for my business, have just been told they are offering shared equity scheme, we get mortgage on 75% of it and pay back rest in ten years.
We havent got our house up for sale as we wouldnt have moved unless it was for one of these, they also do part exchange..BUT they SAY they wont do the two together...or will they???...thats what i need to know?, is it likely if we were sat there with them deposit in hand they would go for it and let us do both????????

bump.

anyone??....

Ask them. Got to be worth putting the question. Although personally I wouldn't go anywhere near shared equity in a falling market.

Ask them. Got to be worth putting the question. Although personally I wouldn't go anywhere near shared equity in a falling market.

Ask them. Got to be worth putting the question. Although personally I wouldn't go anywhere near shared equity in a falling market.

Ask them. Got to be worth putting the question. Although personally I wouldn't go anywhere near shared equity in a falling market.

Ask them. Got to be worth putting the question. Although personally I wouldn't go anywhere near shared equity in a falling market.

oh fgs sorry dh's blinking laptop!

part ex always under values the property, not something you want to do in the current market I'd have thought

thanks for the advice, we've bought and sold 6 times now, so we're fairly up with mortgages and that, we'd obv look into deals etc.

Maybe its different everywhere but similar houses to mine are being bought by builders like this for approx £130'000 at moment, we paid much less and although have done work, its wasnt all that expensive, so it should get top end, however if i put it on market at the minute even though i know how to 'do a house up to sell' i KNOW it would sit for a while at least as no one seems to be buying!
£130'000 is about right, a year or so ago id have pushed for £140'00 in this cond, but being realistic!..its def needs some discussing!, but just wondered if anyone has dnoe this previoulsy, i know 75% is not ideal, but it IS to get our dram house in the perfect area, so is def worth looking into!..thanks again and more advice/ knowledge welcome

Property is just not moving at the moment and so they will probably be very keen. They'll play the game and not want to bite your hand off the moment you walk through the door, but if they know you are serious you can almost call the shots.

thanks cat, we're going to go round tomorrow and peep thru windows (sales office closed till thur) and talk about it some

sorry, i realised how that sounded whilst sat downstairs, it wasnt intended that way, i just meant i know to get a deal like this we would end up paying more in long run..but i know, you're right, and i think its going to be a no no...for that one at least!..i didnt thinnk we would moved for a good few years yet but now its kind of turned my head..we're looking at the cheaper options just so we get the new house, the others are lovely, its just THAT one was PERFECT!..but everything comes at a price and its one we cant really afford sadly..thankyou for all your help, i wasnt being flippant, just trying to say i know its a bit of a crazy notion and a crazy time to be doing it

I've just bought a new build...

I've chatted to the sales office about their 75% scheme after I'd already moved in (they started the scheme two weeks after we signed up), and this is more likely to effect your mortgage than just the fact it's a new build. Our mortgage company cared only whether the house was worth more than we were borrowing, regardless of how old it was.

The problem with 75% schemes is that apparently the housing company retain a 'charge' over the property for the remaining 25% - so even though they claim 'you own 100%, but only pay 75%' they still put the charge over the rest. My sales office said that a lot of mortgage companies won't consider a property that already has a charge over it, so the 75% scheme is only suitable for cash buyers.

Part-ex deals are entirely different - this is what we wanted to do. In the end we didn't because their valuation of our house was quite low, and when they said it costs them 40000 to run a part-ex, I suggested we didn't do part-ex and they offer us 40000 off the (already reduced) asking price!

Just read the OP properly and seen you would actually have to pay back the other 25% in ten years time... even worse than what my guys are suggesting!!

Don't give up just yet though; as someone else said, new build companies are even more desparate to sell than average house-sellers. Make them an offer of what you can afford, and you might just be surprised.

we're gunna hang fire, just looked at current mortgage redemption penalties etc and even though tis possible it would be stupid for us to do right now!, thank you for all your help and advice, it helped me realsie what a crazy idea it was..we're going to look at our finances now, try and pay more off oevr next 2 yr until renewal up and then look