Here's a thought

[Bannon]

Well, we finally made it back to the UK after getting an agreed sale on our house in France - but here's a thought.

We'll have a tidy sum to put towards a house and we had the idea of a) looking at 'new build' houses and, given the current market, getting a deal on the asking price b) renting it whilst the sale of our house completes and c) paying say 75% of the agreed price and arrange for a deferred equity on the remainder which will be paid back when the house is eventually sold - a sort of equity release in reverse I suppose.

We've sounded out a few agents and it seems that some builders are willing to discuss such an option.

It would also have the added 'advantage' of a reduced capital for the Government to draw on when our kids dump us in a nursing home!

Any thoughts guys? Thanks as always. 

[Benjamin]

We were looking at UK new builds late last year.

The shared equity schemes have a lifespan of 10 years. At the end of the 10 years, or earlier if you want (but check the small print) you pay the builder (or his agent e g a finance company) whatever percentage he financed at the then theoretical selling price. In other words I suspect the builders are doing this to shift stock and improve cashflow with any money that's been paid out in interest being amply repaid in the higher selling price.

As far as discounts are concerned we were offered 30% off a very inflated purchase price in the first place. The original plan had been to be off that site some 12 months previously so the sales process was very much behind. We tried to push the builder for more and even though we were cash purchasers and for that reason were able to complete before his year end he wouldn't budge any further so we walked away.

Other's experience may, of course, differ.

[Gardian]

Re new build prices.

Elder son & DIL have just reserved a semi in the Thames Valley. Original release price (I think about 6-9 mths ago), £300k.  Recent offer price (from Nov-ish) £250k.

They offered £225k & it was accepted.

This is not to say that the price mightn't drop further, but they're more than happy with the deal, have a buyer for their's (fingers crossed) and sometimes you just have to settle on something.