mortgage rip off

It seems we are in agreement. :)

up for a maximum 20 years, but now they have decided to bring them down and replace them with proper brick built houses.

discount.

"Jledi" wrote

If they are so bad, why do you want to buy one??

It would seem that the council will be knocking them down. If they still had tenants in them, they would need to be re-housed. If they've been sold, yet are still being compulsorily knocked down, presumably there is a compensation package which includes giving them a new house.

It all seems pretty dodgy if you ask me.

Indeed, once you(the OP) have bought it, why is it in the council's interest to give you a better house for free? Will they build me a free house as well, and if not, why will they (supposedly) build you one?

A question that nobody seems to have asked yet: Why would anyone lend money secured on a property that will be demolished in a few years' time?

progress must be made and because the council only built them as a stop gap for 20 years they have now decided to knock them all down and build new brick houses with a garage, there are around 70 houses in total, the reason why we want to and need to buy it is, we are getting a house worth £60000 for £20000, we also have two options when they are knocked down, the first option is the council give us full market value, in which case we have made at least £40000 profit, or we can do an exchange into a new house, if we don't buy it, the council can move us in to any council house they wish.

houses get the first option on the new houses, council tenents are all shipped out, unless of course they want to buy one however we still have the first option.

or a new house, the new house is guarenteed to go up in value because people will want them, the council tenents will also want to buy them, they are being substidised by the government at a starting cost for a two bedroomed of £47000, this price will soon shoot up.

The price may well increase - but there is no "guarantee".

"Jledi" wrote

Will you use that to pay your creditors *in full* ??

"Tim" wrote:

"Jledi" wrote

Whether it's 3 yrs down the line or not, will you have paid your creditors off **IN FULL** ??

two want me to pay ther full amounts i might consider holding off paying them for a while but either way they will be paid off, how quick is partly up to them.

In message , Jledi writes

Looks like you are involved in "making arrangements with creditors" which may actually make it impossible to get even an adverse credit mortgage.

What happens if you default a few months before demolition? If the mortgagee repossesses the house, it cannot sell it, who will buy a house due to be demolished soon? It does not matter that you get a new house, because there will be no mortgage on it. Banks and building societies worry about such things.