Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • 00n000
    • By 00n000 11th Jun 17, 11:14 PM
    • 2Posts
    • 0Thanks
    00n000
    Shared Ownership help
    • #1
    • 11th Jun 17, 11:14 PM
    Shared Ownership help 11th Jun 17 at 11:14 PM
    Hi

    I would really appreciate some advice. I bought a shared ownership flat 4 years ago buying 25% share. The rent and service charged increased by 14% in the first two years (although the lease states it should only increase approx 2% per year).

    I therefore thought it might be cheaper for me to purchase up to 50% share and made inquiries as I was now working full time. I found out I would save over £300 per month by doing this!, but was told after affordability application 'the computer' (quoted as the reason) said I could only purchase if I could reduce my new mortgage payments by £6! I said even though I would save £300? and they insisted. I got the best mortgage deal I could and could not reduce anymore.

    I therefore put the flat on the market and perhaps unsurprisingly no person looking for shared ownership could afford such a high rent/service charge after buying my 25% share.In the meantime my rent/service charge just kept going up.

    A year and a half after it being on the market I finally found someone able to purchase but the housing trust didn't reply to any of their mortgage companies questions and they pulled out of the purchase saying if they weren't replying now they could see them having a job when they sell, which was a very valid point.

    I have now just been advising my rent/service charge is going up again in July 17. The total increase in the 4 years I have been here is now just under 20%!! It is scandalous how they can call this affordable house, wanting to help people etc.

    I have tried communicating with them, but they never respond to any of my points choosing to reply with short sentence. Unsurprisingly, it has had a very detrimental affect on my mental health and feel I am battling a big company and that they know they have me over a barrel. Please, if anyone can offer suggestions on where I could get some advice, I would really appreciate it. Thank you so much.
Page 1
    • Cakeguts
    • By Cakeguts 11th Jun 17, 11:46 PM
    • 2,413 Posts
    • 3,022 Thanks
    Cakeguts
    • #2
    • 11th Jun 17, 11:46 PM
    • #2
    • 11th Jun 17, 11:46 PM
    What does it say in the lease about the increases in rent? Service charges increase should also be indicated. I wouldn't have expect them to be the same amount?
    • 00n000
    • By 00n000 13th Jun 17, 12:32 PM
    • 2 Posts
    • 0 Thanks
    00n000
    • #3
    • 13th Jun 17, 12:32 PM
    • #3
    • 13th Jun 17, 12:32 PM
    Thank you for replying. It says the rent should only be increased by 1% plus 1% RPI per year. I understand that the service charge you can't change as 'it costs what it costs' depending on how much it costs to run and fix the building.

    I had queried the rent, but never seem to get an adequate answer, always vague.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,965Posts Today

8,205Users online

Martin's Twitter