Can someone please explain this house buying scheme to me

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TykeMerc replied

20 June 2011, 14:01
Originally posted by Sysman View Post

I knew a lass who bought a house through a housing association scheme for first time buyers back in the 1980s. She had a real fight on her hands when she tried to buy them out of their equity in the place.

From the looks of this scheme that scenario wouldn't arise as I strongly suspect there would be no way to buy out their 40% stake in any profits realised from the sale value.
The scheme looks pretty straight forwards to me, the finance company is on a guaranteed winner if the prices rise and has a very limited liability if they fall, I can't see HMG wanting the arse to fall out of the housing market so they will take steps to prop it up artificially. I'm sure there are some pretty aggressive T's & C's in their proposed contracts too.
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Sysman replied

20 June 2011, 13:51
Originally posted by BlasterBates View Post

Actually this could be a runner, if they just increased their share of the risk a bit more and put a notice period in, you could then change the title on the front of the contract to "Rental Agreement" this'll go like hot cakes.

I knew a lass who bought a house through a housing association scheme for first time buyers back in the 1980s. She had a real fight on her hands when she tried to buy them out of their equity in the place.
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BlasterBates replied

20 June 2011, 11:57
Actually this could be a runner, if they just increased their share of the risk a bit more and put a notice period in, you could then change the title on the front of the contract to "Rental Agreement" this'll go like hot cakes.
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Doggy Styles replied

20 June 2011, 11:45
Sounds dodgy to me.

It's probably true that the more complicated it is, the less people will fully understand it, and the more likely they'll get shafted.
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doodab replied

20 June 2011, 10:38
It's simple.

They make lots of money whatever happens and somebody else gets shafted.
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DimPrawn replied

20 June 2011, 10:37
So the FSA top brass, who turned a blind eye to self cert mortgages and ridiculous loan to equity ratios etc, is launching it's own property pyramid scam.

You couldn't make this up. No doubt the funds are coming from the BoE at 0% interest rates.

s
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MarillionFan replied

20 June 2011, 10:35
The article didn't make any sense whatsoever.

I'm out.
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shaunbhoy replied

20 June 2011, 10:32
Originally posted by milanbenes View Post

JC Flowers offers a punt on property - Telegraph

'The mortgage involves no monthly repayments and will give customers a 20pc deposit to buy a home in exchange for 40pc of any profit made from a later sale. Castle will pick up 20pc of any loss on a property. The mortgage is only open to Castle's investment customers who can fund 20pc of their house price purchase.

'

confused

Milan.

Run it past AtW. He is the resident expert on housing matters.

HTH
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milanbenes started a topic Can someone please explain this house buying scheme to me

20 June 2011, 10:31
Can someone please explain this house buying scheme to me

JC Flowers offers a punt on property - Telegraph

'The mortgage involves no monthly repayments and will give customers a 20pc deposit to buy a home in exchange for 40pc of any profit made from a later sale. Castle will pick up 20pc of any loss on a property. The mortgage is only open to Castle's investment customers who can fund 20pc of their house price purchase.

'

confused

Milan.
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