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  • FIRST POST
    • Dumbasfudge
    • By Dumbasfudge 3rd Jan 18, 10:36 PM
    • 3Posts
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    Dumbasfudge
    Shared Ownership Advice
    • #1
    • 3rd Jan 18, 10:36 PM
    Shared Ownership Advice 3rd Jan 18 at 10:36 PM
    Hi guys,

    Iíve been in a shared ownership 1bed coach house for 8years now owning a 60% share. Money has become tight lately I took on a second job and have been considering selling and moving back home to parents. This is all new to me and donít fully understand so forgive me.

    Out of interest I had an estate agent value it at 140-150k. I then had a RICS surveyor come and value it at 113k, obviously the HA require it to be the RICS value.

    What are my options? Agree and settle the low value? Get another RICS value and hope itís higher?

    I also thought what if I staircases to 100% by remortgaging, extending my term etc (obviously if it was financially an option). Then am I right in saying I could sell once mine at the high estate agent values as not controlled by HA? My mum also suggested she would help if she could find a way (but I looked into the equity release thing from her home and I didnít agree with that) maybe guarantor for my mortgage if that would affect anything?

    Are they the only options I have? Just asking about for ideas and advice as Iím pretty clueless when it comes to all this. And the crazy minefield that is shared ownership!!

    Thanks in advance if anyone can help
Page 1
    • Cakeguts
    • By Cakeguts 3rd Jan 18, 11:08 PM
    • 3,524 Posts
    • 4,877 Thanks
    Cakeguts
    • #2
    • 3rd Jan 18, 11:08 PM
    • #2
    • 3rd Jan 18, 11:08 PM
    Did the estate agent value the whole 100%? The RICS surveyor may have valued the 60%? If that is the case then they have valued different percentages of the property.
    • Dumbasfudge
    • By Dumbasfudge 5th Jan 18, 11:04 AM
    • 3 Posts
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    Dumbasfudge
    • #3
    • 5th Jan 18, 11:04 AM
    • #3
    • 5th Jan 18, 11:04 AM
    I’ve been in contact with the surveyor and confirmed that the low price is for100%
    Just can’t understand the huge difference
    • NineDeuce
    • By NineDeuce 5th Jan 18, 11:14 AM
    • 683 Posts
    • 596 Thanks
    NineDeuce
    • #4
    • 5th Jan 18, 11:14 AM
    • #4
    • 5th Jan 18, 11:14 AM
    Re valuation - look on Rightmove at the value of other similar properties in the area to see which valuation is more comparable and accurate.

    A common tactic of the estate agent is to overvalue because a) they have promised you they can get a great deal for you and b) because they will charge you a sale value linked commision

    Re staircasing - 60% is an awkward amount to sell. As you can get SO properties for as little as 25%, you limit your market, as most buyers wont want to buy that much. If you staircase to 100%, then you will be able to sell to the regular market. You can only sell to first time buyers at the moment (and/or people who currently dont own a home).
    • haras_nosirrah
    • By haras_nosirrah 5th Jan 18, 12:21 PM
    • 1,366 Posts
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    haras_nosirrah
    • #5
    • 5th Jan 18, 12:21 PM
    • #5
    • 5th Jan 18, 12:21 PM
    Hi. I specialise in shared ownership and have done for 11 years.

    if you staircase to 100% at the lower figure then you can indeed sell it later on on the full market for whatever you can get. If the property is genuinely worth the higher figure and you can get the finance for the 100% of the rics valuation then this may be a good option for you
    I am a Mortgage Adviser
    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.
    • Dumbasfudge
    • By Dumbasfudge 6th Jan 18, 2:02 AM
    • 3 Posts
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    Dumbasfudge
    • #6
    • 6th Jan 18, 2:02 AM
    • #6
    • 6th Jan 18, 2:02 AM
    Many thanks for your responses

    Can I ask, if I was to staircase to100% is there a time limit before I can sell the property on the open market?

    Spoke to HA today and they have suggested that first I challenge the surveyor if I can find comparable evidence of similar properties in the area and their prices sold and secondly get another surveyor in to value it.

    They also informed me if I was to staircase they instruct their surveyor to value it. Would be interesting just to see what they would value it as
    • gazzabboi
    • By gazzabboi 6th Jan 18, 6:13 PM
    • 201 Posts
    • 89 Thanks
    gazzabboi
    • #7
    • 6th Jan 18, 6:13 PM
    • #7
    • 6th Jan 18, 6:13 PM
    It's a good thing that the RICS value is low. It means you can either buy it cheap, then sell after a couple of months for what it is really worth or just sell it. £113k is the minimum the ha will accept, you can still sell it higher but you will have to give the ha 40% back. E.g. If you sell for £150k then £60k will go to them.
    • haras_nosirrah
    • By haras_nosirrah 6th Jan 18, 6:57 PM
    • 1,366 Posts
    • 2,538 Thanks
    haras_nosirrah
    • #8
    • 6th Jan 18, 6:57 PM
    • #8
    • 6th Jan 18, 6:57 PM
    once you own 100% the housing association have no say over who you sell it to and at what price
    I am a Mortgage Adviser
    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.
    • katiekk14
    • By katiekk14 11th Jan 18, 12:37 PM
    • 1 Posts
    • 0 Thanks
    katiekk14
    • #9
    • 11th Jan 18, 12:37 PM
    SO advice
    • #9
    • 11th Jan 18, 12:37 PM
    Hiya

    I'm looking as an FTB to go down the shared ownership route. There's a 45% share of a flat I'm interested in for £42k and I am planning to live there for at least 3 or 4 years. Given your experience with shared ownership - would you recommend I go for it? Have you had any bad experiences?

    Thanks
    • PrettyinPink
    • By PrettyinPink 13th Jan 18, 12:29 PM
    • 2 Posts
    • 0 Thanks
    PrettyinPink
    Hi there

    I currently have a shared ownership 45% too. I've personally had a really positive experience. I would never have been able to get on the property ladder without it. I think it depends on your situation.
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