teach

Can anyone help please? Back last year we were watching a relocation programme, where families were taken to Oz shown houses and basically everything was done for them except finding jobs. They had a month I think to decide whether to stay or go. On this programme one family moved into a brand new house that was on a rent to buy mortgage. Basically they rented for 1st year then the rent was swapped straight to a mortgage. Has anyone heard of this, if so do you know where I can find some info? Have had no luck finding anything yet. Many thanks in advance for you help.

Best Wishes
Sarah

adelaidegirl

This sounds suspiciously like a 'wrap'. A private buyer gets a mortgage and buys the property, rents it to you for a higher monthly repayment than he actually pays himself (and you pay a higher price for the house too, say he pays $250K he will charge you $280 or whatever). I'm guessing that in this case you get a home loan from a bank after a year and buy the house off the first lender. Be aware that you have no security, if the private lender goes belly up the bank will kick you out and take back the house, or you default on your payments to the private lender you will also be out in the cold with nothing to show for your over-maket rate rental payments.

adelaidegirl

mrladyboy

I saw the programme too. The people couldn't get a mortgage because they had only just arrived. But they committed to buying on a certain date (or before if they wanted from memory), at a certain price. Basically it was just a massive settlement period on buying the house, with a 12-month tenancy agreement beforehand.

I don't think the mortgage was even arranged when they signed the agreement. They had 12 months to find a job etc. In short, it was a private arrangement (although legally binding) and a risk the expat family were prepared to take because they fell in love with the house. Very dangerous... even if they decided to come home to the UK they were legally committed to buying.

Their plan was to go to a bank once they had a job, borrow the money ASAP and buy the house once they could afford to.

teach

Thanks Adelaidegirl and mrladyboy.

Now you mention it mrladyboy, it all comes back to me about it being a private arrangement and dependant upon them getting jobs and a mortgage once their year was up. Ta for that. Will definitely steer clear of that one.

Cheers
Sarah

kittenlips

Hi Sarah

I think you are referring to "get a new life". The family in question emigrated to New Zealand and is a member of this site (firing1). I don't know if this is available in OZ or not but you could try emailing firing1 for info about it. Although if you do a search for his posts I think you'll find they nearly came unstuck as they hadn't yet sold their house in england and was stuck with having to buy their new house.

Regards
Theresa

sofistek

As I recall, they did sell their house, in the UK, in time and it worked out well, though I hadn't seen any posts from them in a while, until: http://britishexpats.com/forum/showt...hreadid=201626