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I wonder what the deal is here?

Discussion in 'Personal' started by modelmaker, Apr 7, 2012.

  1. modelmaker

    modelmaker Occasional commenter

    A notice has appeared on the gate to the cricket club nearby. It's offering 71% of a two bedroomed house for £170K. Sounds like bargain for the area, but who owns the other 29%?
    It reminded me of a story I was listening to on the wireless about an American woman who wanted a house but wasn't earning enough to get a mortgage on her own. She came across an advert offering something similar and followed it up.
    It turned out it was a house owned by a single man in his late 60s who fallen into hard times through illness. He had no family and the illness prevented him from working in his business with the consequence he had no income. He needed a major operation and the only way he'd raise the money for it was going to be from selling his house. But then where would he live?
    So his plan was to see if he could find someone to buy the house and agree to let him live there until he died. After all, he had nobody to leave it to.
    The woman found him to be a very pleasant man albeit quite unwell so she gambled his days were numbered and it was probably her only chance of getting onto the property ladder. A contract was drawn up and the house was sold. They had it converted into separate flats, the man had his operation and returned to fair health. They lived like this for a year or so as really good neighbours. She actually grew to like him a lot.
    Eventually the woman found herself a partner who moved in with her and then she became pregnant. Although the house was quite large, once it had been divided into two flats, it meant each had just one bedroom, a living area, kitchen and bathroom. Her flat wasn't big enough to share with a growing child but it wasn't going to be easy to sell because the contract stipulated that the old man would be allowed to live there for the rest of his life.
    She sounded like a very compassionate woman who became torn between really liking the old boy and hoping the day he popped his clogs would arrive sooner than later.

     
  2. modelmaker

    modelmaker Occasional commenter

    A notice has appeared on the gate to the cricket club nearby. It's offering 71% of a two bedroomed house for £170K. Sounds like bargain for the area, but who owns the other 29%?
    It reminded me of a story I was listening to on the wireless about an American woman who wanted a house but wasn't earning enough to get a mortgage on her own. She came across an advert offering something similar and followed it up.
    It turned out it was a house owned by a single man in his late 60s who fallen into hard times through illness. He had no family and the illness prevented him from working in his business with the consequence he had no income. He needed a major operation and the only way he'd raise the money for it was going to be from selling his house. But then where would he live?
    So his plan was to see if he could find someone to buy the house and agree to let him live there until he died. After all, he had nobody to leave it to.
    The woman found him to be a very pleasant man albeit quite unwell so she gambled his days were numbered and it was probably her only chance of getting onto the property ladder. A contract was drawn up and the house was sold. They had it converted into separate flats, the man had his operation and returned to fair health. They lived like this for a year or so as really good neighbours. She actually grew to like him a lot.
    Eventually the woman found herself a partner who moved in with her and then she became pregnant. Although the house was quite large, once it had been divided into two flats, it meant each had just one bedroom, a living area, kitchen and bathroom. Her flat wasn't big enough to share with a growing child but it wasn't going to be easy to sell because the contract stipulated that the old man would be allowed to live there for the rest of his life.
    She sounded like a very compassionate woman who became torn between really liking the old boy and hoping the day he popped his clogs would arrive sooner than later.

     
  3. nick909

    nick909 Star commenter

    It might be a management company offering a 'shared ownership' deal. They are a good way for first time buyers with little in the way of deposit to get a foot on the ladder but can be tricky to get mortgages on unless the management company (or whoever the 29% title holder is) agrees to take 2nd charge on their share, behind the mortgage lender (meaning the bank gets all of their money back, should the borrower default, before the other title holder sees any of their share).
    There is nearly always a montly rent payable to the other title holder, making the deal a little less attractive than it seems.
    I used to be in the mortgage game, y'see.
     
  4. modelmaker

    modelmaker Occasional commenter

    The thought had passed my mind, nick, but then I wondered why the property was being advertised on the cricket club gate, a site not renown for advertising anything other than the matches to be played there. Surely a management company would be using the estate agents or the Internet?
     
  5. catmother

    catmother Star commenter

    Maybe it's owned by the cricket club?
     
  6. modelmaker

    modelmaker Occasional commenter

    It might be, but why not sell it outright? And why the 71% ownership instead of 70%.
     
  7. nick909

    nick909 Star commenter

    Maybe the chairman (or similar) of the cricket club, wanting to raise a set amount of capital (hence why the 71%) but didn't want to let go of the property entirely. Could have been to do with getting rid of assets for a particular reason.
     
  8. modelmaker

    modelmaker Occasional commenter

    That would be such dull an outcome from this intiguing advert. I shall have no choice but to walk over the road in the morning and take down the number and find out if there is a more interesting story behind it.
    You never know, it might be the start of a career in journalism or a career as a novelist if there is something more here.
     
  9. I had friends you lived on the grounds of a cricket field. They paid a reduced amount for the property in agreement that they would look after the ground (cut the grass etc.)
     
  10. marymoocow

    marymoocow Star commenter

    A friend bought a shared ownership property as a single person and it was good at the time, but now he wants to sell he cant sell it.
     

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