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TOPIC: Help To Buy Scheme

Help To Buy Scheme 2 years 6 months ago #83134

  • geek84
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Hi Folks

Am I correct in saying that the Help To Buy Scheme is designed to help people buy their first property?

If so, there was a report in the news last week that a lot of buyers were not first time buyers.

Did anybody read/hear that?

Thanks

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Help To Buy Scheme 2 years 6 months ago #83148

Help to Buy was set up to encourage housebuilding, so hardly surprise 19% of them were not first time buyers, or 57% said they did not need the scheme but chose to use it.

The Guardian did some pieces last year on ground rents, some doubling every 10 years in effect killing any value in the home very quickly as mortgage lenders won't lend to buy such homes.

There is a huge distortion of the public perception of home ownership and what it entails. People are quickly taking advantage at getting homes cheaply without understanding the liabilities they are taking on.

A common misunderstanding is if you have 25% share of the lease your liability is 25% of your portion of any works. No, you are 100% liable for your share. Or because they pay rent the freeholder must be responsible for some of the repairs in the home. Again no, you are 100% responsible, unless it is structural. The rent element is purely to give you the right to live in the home.

A small truth that many leaseholders struggle to understand is that the huge amounts of money they pay does mean they owe their homes, they are tenants who have bought a piece of paper which gives them additional rights and protections, but also potentially large liabilities. If anyone disagrees with this look at the legislation and the/a lease - they are referred to as tenants in both.

Buying a home is one of the biggest investments most people will make, it is shocking how many do not read the lease they are going to sign or understand what liabilities they are taking on., especially when buying in a block or on an estate.

I am not saying home ownership is bad, but taking a decision based on a discount and seemingly cheaper options without looking at and understanding the liabilities involved is a recipe for a potential disaster.

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Help To Buy Scheme 2 years 6 months ago #83194

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Thanks OddFather

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Help To Buy Scheme 2 years 6 months ago #83215

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to follow up on Oddfather's post, I think there is an even worse situation in some cases where solar panels have been installed - in some (not all) cases, you may own the house, but not the roof.

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Help To Buy Scheme 2 years 6 months ago #83230

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Thanks actd

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