Shared Ownership - devaluations

badger_2407 · 28 July 2008 at 11:49AM

I wonder if anyone can help or advise on this situation.

I had a application accepted in April to buy a 40% share in a house priced at £235K. Subsequently the valuation came out at £200K and mistakenly Abbey sent out a mortgage offer without taking this into account. This was then picked up by my broker and we have now been trying to negotiate lower valuation. Initially the Housing Asccociation agreed to reduce to £200K and increase my share to 47%, this went to their Director who has now refused to reduce the price.

I am unsure where this leave me and they are not being clear - a surveyor who I know locally would not value the house at more than £200K. I assume that they want me to pull out so they can re-market but morally this seems unfair as any new buyers valuation is likely to be the same, if not less, in the falling market.

Should the Housing Association arrange for an independant valuation as a second opinion rather than closing the door on me. The Sales consultant and Manager are both sipportive of my position but the intransigence has come from their Director of Sales.

ruggedtoast · 28 July 2008 at 12:08PM

The Director of Sales has done you a huge favour. Pull out now and think yourself lucky you escaped becoming another victim of these poisonous investment vehicles.

brit1234 · 28 July 2008 at 12:22PM

Get out of there quick while you still can. Newbuild shared ownership properties are extremely risky at the moment and you are likely to lose a hell of a lot of money.

There are only 3 banks who provide loans for these, no one is going to want to buy it from you in the future as prices continue to fall, there are just to many conditions as well as potentially living next door to some dodgy relocated council estate lunatics.

Run!!!!!!!!!!!!!:eek:

kaysmith87 · 28 July 2008 at 1:37PM

not all shared ownership propertys are bad. Mine is a newbuild but was a good price. I have had a few hicups whilst purchasing it but i would rather have it than not.

PasturesNew · 28 July 2008 at 1:44PM

I bought one at what I now know was the peak of the last boom. To be honest, I didn't even know about prices falling/rising and it being cyclical until the last 1-2 years. I knew when I sold it that it was worth less, but how that comes about ... who knows!

For some people, in some areas, at certain stages of their life, a SO property is the right thing to do.

Even now, the RIGHT property for the right reasons would be a good move.

For the majority of people, for most SO properties, for most circumstances, now isn't good.

In my opinion, SO should be sold to people who never ever expect to ever ever be able to buy their own home at all because how much they earn is SO far different from the cost of houses. It's dangerous when people see them as a stepping stone, especially if hoping to move on in 2-3 years - any new build will have come at a premium price, so in a short time frame a SO will rarely benefit the buyer.

WAIT. Waiting is the new way to get on the property ladder.

mpsavuk · 28 July 2008 at 1:49PM

kaysmith87 wrote: »

not all shared ownership propertys are bad. Mine is a newbuild but was a good price. I have had a few hicups whilst purchasing it but i would rather have it than not.

Yeah, i'd much rather pay a mortgage, and rent and service charges as well.

And not get a say in who i sell to when the time comes.

At least i'd have one toe on the property ladder.

:rotfl:

Shared Ownership - devaluations

Comments

Confirm your email address to Create Threads and Reply

🚀 Getting Started

Categories

Is this how you want to be seen?

Get our FREE Weekly email full of deals & guides - and it’s spam-free