C-19, trying to move

[PurpleDaisy2114]

Hi all, we have been in the process since Jan of trying to move. We live in Midlands and are getting support from an investment company to move. Basically they buy the house and rent to us for 5 years then any equity built is available to us to use as a deposit to buy the house if we want to at the end of the 5 years.

Our credit rating is poor and we just don't see any other option for us. The house is new build and we passed affordability checks etc. The house is not ready to move into yet. A holding deposit has been paid to the house builders.

Last week DH and I had to prove our jobs prospects of wither of us were to lose our jobs and reassure investment company of our position. This is all ok and they are happy.

Now, the investment company is saying the house property has decreased due to C-19 and has been quoted by Savills as dropping 5%.

So investment company wish to try and negotiate price. Housing company say yes people have approached them saying similar but another 5 properties have been reserved in last week so they won't budge.

Investment company say it would be a dereliction of duty for them to pay over the odds and worse case scenario is we lose house. It just all seems unfair.

Any advice or thoughts at all? Is there anything we can do?? We are desperate to move as a family- the kids are banking on it and I'm not sure how they will take it all falling apart.

Anyone awake?

I knew this wouldn't get much interest 😂

To be honest, it sounds a bit sketchy - are you saying that this company is going to be your landlord for 5 years and then they’re going to give you a lump sum at the end of it? Or is it a rent to buy scheme where you’ll have to get a mortgage and buy the property off them at the end of 5 years?

Sounds too damn complicated and fraught with problems.
How will equity be built for you to use as a deposit as prices are dropping surely that will mean no equity will be due

I don't trust investment companies. I don't trust new-build companies. I'm not sure what this is but I wouldn't recommend it to my DC.

Why are you so desperate to buy now, of all times?

"Basically they buy the house and rent to us for 5 years then any equity built is available to us to use as a deposit to buy the house if we want to at the end of the 5 years.

Our credit rating is poor and we just don't see any other option for us."

If there is a property crash or just a fall in prices then there will be no equity to use? Why not save for a few years when your credit rating will have improved and look to buy then?

Or is it a rent to buy scheme where you’ll have to get a mortgage and buy the property off them at the end of 5 years?

As above. We've tried for years to get mortgage, just never seem to be able to sort ourselves out. Our income is good, it is the deposit that is the issue.

We have to move this Summer as landlord wants property. Kids are fed up of renting as are we

Thanks for the replies

Was hoping for some suggestions about how best to deal with investment committee of possible.

The answer is don't deal with them.

Run a mile.

There will be no equity (have you read anything about the current housing market and the pending recession/depression) which is why they're prepared to offer you this package when a mortgage company wont touch you.

They're about to loose shit loads of money and they're attempting to pass their financial risk on to you.

You will be fucked and stuck OP.

I understand renting is frustrating, but it will be nothing like renting only to be in negative equity at the end of the period. Standard shared ownership schemes are bad enough.

You will be in debt that you cant see yourself out of for 15 or so years, and that is if repossession doesn't come knocking in the meantime.

This is another bad financial decision. You really do need to seek some professional, independent (not in any way linked to them) financial advice.