Key Worker Living Programme for house buying

#1
#3
Just asked this question in the finance section as well. Never saw this property link here before.

Hopefully we will get aome further info
 
#5
I have posted a bit more info on the schemes in Azrael2006's posting in the Finance section.

From my info schemes are now open to all house types - not just new builds.

Regards

Stephen
 
#6
Just had a look at www.forceshousing.com and there is a big banner across the homepage saying the forces home ownership plan has been withdrawn.
I personally believed it was because they faced a potential spanking of profits due to Soldiers taking up the of shared equity and then when the house prices fall, we would buy out the share for ourselves at a cheaper rate. As it says in the infopack" we also share the risk if prices fall" well I think their risk got to risky on the balance sheet so they pulled it off the market.

So much for helping out the forces! First sign of trouble and they run like French infantry!
 
#7
Its a bit of a con, by the time you pay rent on the housing associations cut you may as well be paying the whole lot to the building society,

Trotsky (paying the whole lot to the building society and wondering if he may have missed a trick here)
 
#8
Teh "rent" on thehousing associations cut would have been at a "peppercorn" rate so on a 200k house with a 35% shaerd equity you would have a mortgage for 130k and a small payment for the remainder. The benefit to the stakeholder would have been on selling the house. Presuming rising prices they would have cleared a profit because the percentage is based on market value. Hence rising house price=rising profit and vice versa. But if you have a buyout clause on the shared stake, you can buy it out when prices fall and save money. For example:

200k house with 35% stake =70k share for stakeholder

houseprice falls to 100k therefore stakeholder share=35k

Canny squaddy wins pools pays off the 35k owns the house 100%

Houseprices rocket house now worth 400k squaddy sells and trousers a massive 235k

Stakeholder left with a loss of 35k.

Is it any surprise that forceshousing have withdrawn their homebuy scheme?
 
#9
gundog said:
houseprice falls to 100k therefore stakeholder share=35k
question... are you on the same planet as the rest of us?!?!? :)

over what time period would you envisage this colossal 50% crash in value happening?!?!
 
#10
Answer:

Figures are for illustrative purposes only. The use of 200k and 100k were used so that the argument could be easily followed without arrsers having to remove shoes and socks to help with the sums.

As it is, the media are touting between 10 and 20 percent falls in house prices over the next two years.

Incidentally there is supposed to be a replacement for the Foces Homeplan scheme being formulated.
 

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