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  • FIRST POST
    • LonelyTed
    • By LonelyTed 3rd Apr 17, 3:02 PM
    • 2Posts
    • 0Thanks
    LonelyTed
    Shared Ownership - Maximum Permissible Percentage
    • #1
    • 3rd Apr 17, 3:02 PM
    Shared Ownership - Maximum Permissible Percentage 3rd Apr 17 at 3:02 PM
    Hi there,

    I have a "Maximum Permissible Percentage = 80%" clause in my Shared Ownership Lease. This means that I can only ever buy up to 80% of my flat.

    My current mortgage provider refuses to give me a remortgage, as I cannot staircase to 100%.

    Does anyone know how I go about amending my lease to remove this "Maximum Permissible Percentage" clause?

    Thanks
Page 1
    • Rosieandjim
    • By Rosieandjim 3rd Apr 17, 8:20 PM
    • 81 Posts
    • 100 Thanks
    Rosieandjim
    • #2
    • 3rd Apr 17, 8:20 PM
    • #2
    • 3rd Apr 17, 8:20 PM
    You cannot remove this clause as the houses were built for people who cannot afford the full market value of a property. Hence why you can only ever sell for the 80%
    • neilio
    • By neilio 4th Apr 17, 9:22 AM
    • 206 Posts
    • 102 Thanks
    neilio
    • #3
    • 4th Apr 17, 9:22 AM
    • #3
    • 4th Apr 17, 9:22 AM
    I must admit, I had never heard of Maximum Permissable Percentage clauses in shared ownership leases until I actively started using this forum last year. I was shared ownership and was able to staircase to 100%. I thought the whole point of shared ownership was to encourage staircasing, ultimately to 100%. Have Maximum Permissable Percentage clauses always existed or is this a more recent thing?
    • lewishardwick
    • By lewishardwick 4th Apr 17, 9:37 AM
    • 450 Posts
    • 557 Thanks
    lewishardwick
    • #4
    • 4th Apr 17, 9:37 AM
    • #4
    • 4th Apr 17, 9:37 AM
    Why would a property developer ever allow those who cannot afford a full mortgage to ever wriggle out of paying them extortionate rents?!

    I looked at shared ownership for about 5 minutes then realised how screwed people are from every angle.
    • BLOW FLY
    • By BLOW FLY 4th Apr 17, 10:39 AM
    • 103 Posts
    • 80 Thanks
    BLOW FLY
    • #5
    • 4th Apr 17, 10:39 AM
    • #5
    • 4th Apr 17, 10:39 AM
    Why would a property developer ever allow those who cannot afford a full mortgage to ever wriggle out of paying them extortionate rents?!

    I looked at shared ownership for about 5 minutes then realised how screwed people are from every angle.
    Originally posted by lewishardwick
    ^^^ what he said +1

    Shared ownership is worst of both worlds of buying and renting.

    I know someone who went for shared ownership scheme on a leasehold property using some sort of HTB offer too, what a mess.....

    BF
    • neilio
    • By neilio 4th Apr 17, 10:45 AM
    • 206 Posts
    • 102 Thanks
    neilio
    • #6
    • 4th Apr 17, 10:45 AM
    • #6
    • 4th Apr 17, 10:45 AM
    There are a lot of anti-shared ownership people on these boards. I know several people, including me, who have done shared ownership and not had any problems. Selling after having staircased to 100% was a pain but in the grand scheme of all the other frustrations I've read about people selling freehold houses, it was no big deal.

    In an ideal world, everyone would buy full-sale properties. But we live in a world where property is unaffordable for people. If all you can afford is shared ownership, then do it. You are still investing in something and someone will eventually buy it off you when you want to move.

    Obviously, look into how much you are ultimately permitted to staircase by. I would be amazed if none of them let you staircase to 100%.
    • agrinnall
    • By agrinnall 4th Apr 17, 10:57 AM
    • 18,515 Posts
    • 14,228 Thanks
    agrinnall
    • #7
    • 4th Apr 17, 10:57 AM
    • #7
    • 4th Apr 17, 10:57 AM

    Obviously, look into how much you are ultimately permitted to staircase by. I would be amazed if none of them let you staircase to 100%.
    Originally posted by neilio
    That's not helpful for the OP though who already owns the property and is not allowed to staircase past 80%, what can be done in other properties is irrelevant.
    • neilio
    • By neilio 4th Apr 17, 11:06 AM
    • 206 Posts
    • 102 Thanks
    neilio
    • #8
    • 4th Apr 17, 11:06 AM
    • #8
    • 4th Apr 17, 11:06 AM
    That's not helpful for the OP though who already owns the property and is not allowed to staircase past 80%, what can be done in other properties is irrelevant.
    Originally posted by agrinnall
    The two previous contributors to me aren't exactly helpful either, are they. At least I'm being positive; they aren't. Did you read the whole thread? Clearly not.
    • neilio
    • By neilio 4th Apr 17, 11:19 AM
    • 206 Posts
    • 102 Thanks
    neilio
    • #9
    • 4th Apr 17, 11:19 AM
    • #9
    • 4th Apr 17, 11:19 AM
    To the OP, I just found this document.

    It says that housing associations are obliged to allow staircasing to 100% unless you are in a protected area where shared ownership stock would be hard to replace. What area do you live in?
    • gg234
    • By gg234 4th Apr 17, 1:20 PM
    • 39 Posts
    • 17 Thanks
    gg234
    Only problem with shared ownership is staircasing and selling it very painful and time consuming
    • LonelyTed
    • By LonelyTed 6th Oct 17, 3:36 PM
    • 2 Posts
    • 0 Thanks
    LonelyTed
    Hi neilio,

    Thank you for the link to the document. I'm reading through it now and it does sound very promising. My flat is in central London, so the rural element should not apply. It is an old Victorian terrace converted into 3 flats, so it's neither new built.

    The housing association L&Q refuse to remove the clause, saying that their intial funding was from Duchy of Cornwall, imposing the 80%.

    I have been going back and forth for the last 6 months! - Apologies for late reply.

    Any further hints / thoughts / experience would really help. I'm thinking to take them to Tribunal.

    Robert
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