Alternative mortgages with cooperatives
05/09/2011 - 17:32 - Category: mortgages and loans - (pText)
In addition to hundreds of banks, building societies and insurance companies with their credit-based funding model, some cooperatives to an alternative construction financing.
In the cooperatives play the creditworthiness of minor importance, so that self-employed and interested parties with lower incomes or with "Schufa damages" covered by the examination of their funding request often through the cracks of the banks, a predictable path offered to the family home.
The focus of the cooperatives is much more on the property, on their economic value and usefulness. Thus the interests of all comrades and the economic success of the cooperative are guaranteed.
Among the offerings of the cooperatives are a special form of the lease, the so-called option to purchase. Here, the cooperative acquires the desired property of their comrades. The mate takes one for 25 years and pays a fixed, unchanging rent. That gives him a high planning security and over the years a substantial financial advantage (no rent increases). With a simplified liquidity test will ensure that the comrade, the ongoing monthly costs also can actually afford in the long term.
The call option is of course registered with the Land Registry so that the mate completely protected by law. Only he can therefore have during the 25-year option period on his property.
The purchase price is not in the cooperatives financed by a loan, but saves the comrade with its own separate investment, the purchase price. This opened him a high degree of flexibility in repayment. For example, the repayment in times of low revenue temporarily reduced or even suspended, without having to make lengthy consultations with the Bank or the long term without risking serious
consequences as a foreclosure. Within 25 years, the contemporary use of the purchase option at the right time and the purchase price paid for the cooperative purchase of the property originally purchased the property. This is not to Kreditvorfälligkeitsentschädigung such as banks. Further benefits of mate at this repayment on a credit basis from the compounding effect, ie He achieved his goal with smaller savings rates.
Quality and sustainability of the purchase option prices depend crucially on the provider and its conditions from. Ideally, the cooperative have a long-standing expertise in management, buying and selling real estate. You should already have a significant property portfolio and be equipped with sufficient equity. Their economic success should be transparent and be certified by independent auditors for the prospective buyers. It should also have information that actually already offer the option purchase real estate wishes have been realized.
Furthermore, the statutes should still be checked to determine whether the cooperatives to refinance or work exclusively with the deposits of the comrades must. In the second variant can be realized only if the cooperative property of their comrades, when sufficient new comrades regularly subscribe for Shares, ie the desire to own a home depends not only on the individual qualification depends on whether the cooperative will continue to other members.
Finally, the costs for joining the cooperative and the internal calculations are considered. When comparing the cost of a glance at the charges (premiums, contract fees). When the internal calculation (monthly costs), however, a simple comparison of raw numbers is not enough. Here are a low cost estimates, this may look tempting, but there is a realistic risk that the relevant cooperative long-term-made benefit plans do not comply may, at worst, become bankrupt, with fatal consequences for the power generators who could lose their entire shareholding.
According to our research so far only one vendor currently meets all criteria in the market: the housing association fides of willow.
