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  • FIRST POST
    • Lee_essex
    • By Lee_essex 22nd Sep 16, 10:38 PM
    • 2Posts
    • 0Thanks
    Lee_essex
    Shared Ownership
    • #1
    • 22nd Sep 16, 10:38 PM
    Shared Ownership 22nd Sep 16 at 10:38 PM
    Hi all,

    I posted a question at some stage last year but can't seem to find it so I'm going to ask again.

    When you sell a shared ownership property, do you receive a share of just the profit or the total value of the property?

    Scenario

    Purchased 25% share of property (full market value £169,500) and got a £42,375 mortgage and paid a 4K deposit.

    Property now valued at £275,000 by RICS surveyor
    Value of property has increased by circa £105,000

    Would I receive 25% of of the £105,000 so circa £26,000
    Or
    Would I receive 25% of the total value of £275,000 so circa £68,000

    I know that there is a 1% fee due to the HA for selling the property so this has been considered.

    I've asked numerous people and no one seems to know the answer which is quite worrying now that I am going through the sale process.

    Any help would be appreciated.
Page 1
    • Cakeguts
    • By Cakeguts 22nd Sep 16, 10:42 PM
    • 640 Posts
    • 802 Thanks
    Cakeguts
    • #2
    • 22nd Sep 16, 10:42 PM
    • #2
    • 22nd Sep 16, 10:42 PM
    You can only sell the bit that you own.
    • Pixie5740
    • By Pixie5740 22nd Sep 16, 10:42 PM
    • 8,353 Posts
    • 10,956 Thanks
    Pixie5740
    • #3
    • 22nd Sep 16, 10:42 PM
    • #3
    • 22nd Sep 16, 10:42 PM
    Here's your previous thread:

    http://forums.moneysavingexpert.com/showthread.php?t=5357404

    You own 25% of the property so you get 25% of the sale price (minus fees and paying off the mortgage of course).
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • kingstreet
    • By kingstreet 22nd Sep 16, 10:56 PM
    • 29,617 Posts
    • 15,708 Thanks
    kingstreet
    • #4
    • 22nd Sep 16, 10:56 PM
    • #4
    • 22nd Sep 16, 10:56 PM
    I've asked numerous people and no one seems to know the answer
    Originally posted by Lee_essex
    It gets more worrying based on the calibre of those you have asked.

    You own 25%. You have a mortgage of £x.

    25% minus £x is the equity you have and from that your fees will be deducted.

    After that, what's left is yours.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Cakeguts
    • By Cakeguts 22nd Sep 16, 11:50 PM
    • 640 Posts
    • 802 Thanks
    Cakeguts
    • #5
    • 22nd Sep 16, 11:50 PM
    • #5
    • 22nd Sep 16, 11:50 PM
    You are selling the 25% that you own. You are not selling the whole property because 75% belongs to the Housing Association. You cannot sell the 75% that belongs to the Housing Association. You can only sell the 25% that belongs to you.

    So from the sale of your 25% you will get back your deposit plus anything you have paid off the mortgage loan plus the increase in value of your 25% minus any fees that you have to pay to sell.

    You will not get anything from the increase in value of the Housing Associations 75% because you don't own that so you can't sell it.
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