DAD.info
Forum - Ask questions. Get answers.
Welcome to the DAD.Info forum: Important Information – open to read:

Our forum aims to provide support and guidance where it can, however we may not always have the answer. The forum is not moderated 24 hours a day, so If you – or someone you know – are being harmed or in immediate danger of being harmed, call the police on 999.

Alternatively, if you are in crisis, please call Samaritans on 116 123.

If you are worried about you or someone you know is at risk of harm, please click here: How we can help

Notifications
Clear all

[Solved] Help To Buy Scheme

 
(@geek84)
Honorable Member Registered

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

Quote
Topic starter Posted : 07/04/2017 3:12 pm
(@OddFather)
Trusted Member Registered

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.

ReplyQuote
Posted : 08/04/2017 1:20 am
(@geek84)
Honorable Member Registered

Thanks OddFather

ReplyQuote
Topic starter Posted : 11/04/2017 12:38 pm
(@dadmod4)
Illustrious Member

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.

ReplyQuote
Posted : 12/04/2017 12:15 am
(@geek84)
Honorable Member Registered

Thanks actd

ReplyQuote
Topic starter Posted : 12/04/2017 8:35 pm
Share:

Pin It on Pinterest