Sudden & unexpected rent increase

sugarpants_2

Just been put off shared ownership .thanks

robpw2

although i would say that a standard rent only for that property would proably be £600 a month can you ask them to give you reasons why they have increased the rent., also they government produced a booklet to go with shared ownership to explain increases etc ,

poppysarah

I think it's appalling - have you found out from shelter yet if they're allowed to - and what a comparable market rent under LHA is for your postcode?

bach230

as yet we haven't heard anything from either Nexus or the local council as to why they have increased this rent or whether we can have an independent review on the rent at all. the consultant who i work for at my local hospital does of lot of property buying and letting and when i mentioned it to him this morning even he was gobsmacked at what they've said. he feels that we should try and see if we can buy the property out right then we won't have this hassle but it seemed to me that we struggled to get the mortgage that we needed just for our share of the property. our wages have both increased since we initially set up our mortgage so whether that would make any different or not i don't know.
he did also say that we should really be able to have monthly payments of £700 with a mortgage of £200,000 so for us to only be paying just under £400 on a £67,500 mortgage seems a lot to him anyway.

my husband knows a little more regarding mortgages than me so i will speak to him when he comes home from work as to whether we could afford to get a full mortgage or not but i shall keep trying to see if we can sort this out. it's certainly "reassuring" to hear so many people that shared ownership schemes area scam - so much for them being ideal for first time buyers!!

ginvzt

He probably means interest only £700 per month on £200k mortgage...

TAking it back - just looked at the numbers:
£200,000 mortgage for 25 years at 6% interest rate would have a repayment of £1288.60, so much more than £700. Interest only part would be £1000!!!!

bach230

ok thanks for that ginvzt, that's really interesting to know

PasturesNew

You will need to read your specific agreement to know what they can/can't do, what was in YOUR small print. So dig that out.

It does seem excessive, so it sounds like you signed up for some odd scheme and not a run of the mill one.

As you've been in the property so short a period of time, I doubt you'd be able to afford, or get, a mortgage. I am making some assumptions here and they are:

- if you could have afforded a whole mortgage from the start you'd have got one
- the property is worth less now than when you moved in, especially if it was new then
- you don't have a 10% or more deposit needed to secure a mortgage.

tomstickland

he did also say that we should really be able to have monthly payments of £700 with a mortgage of £200,000 so for us to only be paying just under £400 on a £67,500 mortgage seems a lot to him anyway.

A £70K repayment mortgage at around 6% is about £500 pcm.

lynzpower

In order to work out how and why they can increase the rental portion of your SO is completely embedded in your lease.

Mine was written that they could only
a) put it up by inflation
b) only do this after giving us written notice
c) it could only happen on one date PA

Do you have your lease to hand?

bach230

thanks for all your respones.

we have now actually had feedback from the housing association to say that there was a !!!! up in the finance dept. some home owners had actually been told that their rent was going to go up to £2000 a month so it's one hell of a major !!!! up!!
anyway, our rent will not be going up to £330 as we were previously told, it is only going up by £4.63 to £161.53 so at least we will still be able to afford it.

thanks again