Shared Ownership Nightmare-any tips?

mean_momma

robin_banks wrote: »

Shared ownership is (somewhat spuriously) based on a housing need as opposed to a speculative gain.

Except that the Housing Associations appear to be speculating via building properties that they hope to sell to ftbs on the bottom rung, for a profit!

robin_banks

To be fair they do need to cover thier costs, but they are not very good at getting values right, it's a very common theme with shared ownership, a feature in the gaurdian over a year highlighted this very problem.

mean_momma

A few years ago I overheard two property businessmen on a train preparing for a meeting with HAs to flog them loads of developments, or development ideas. They were going to make huge profits out of it. Maybe the HAs are financially naive, but they have wasted a lot of public money on schemes that are not fit for the purpose, ie supplying fairly valued (nevermind subsidised) homes for low earning ftbs.

ameratsu

robin_banks wrote: »

In all honesty very few will have because they are so diffult to sell, and very few shared ownership buyers have been able to stairgate the %ge they have purchased.

A well intentioned but wholly misguided scheme.

We must have been one of the lucky few - we took 25% shared ownership in 1996 on a house that was £47000 - fast forward to 2005 and we finally managed to buy our house outright for £70000, on a valuation of £120k.

Had we been able to get a full mortgage in 1996 ( when borrowing was strictly 3x joint income) we would now have a tiny mortgage and it would be over half paid off:rolleyes: .

sukieq

Thanks for your responses and advice. I'll keep you posted on what happens next...

mrsdarbs

I'm really sorry to hear of your situation and I'm afraid I have no advice to offer, however, I do note that some people on here are talking about the renting out of shared ownerships properties. I know with Broomleigh Housing Association this is a possibility as it is something I am looking into having to do myself (please see seperae post).

My only advice to you would be consult and documentation you have very carefully and like the others have said -speak to your solicitor further.

Good luck.

sp2

Gosh! We havent exchanged contracts yet on our part buy part rent but we are thinking of pulling out of our scheme because the HA say the property has not dropped in value since April 2008. We are concerned about being in negative equity. It also appears that people are having issues with selling places on due to unreasonable housing associations. Is seems to be a common issue. I dont have any advice but get you solicitor onto it.Sorry cant be of more use

geoffky

Shared Ownership Are For The Financially Remedial. There Will Be In A Few Years Thousands Of People Who Have Been Conned Into One Complaining About Them... They Are Designed To Maintain High House Prices And Still Let People Buy Who Cannot Save A Deposit . Madness

sukieq

You are all heart Geoffky. Don't forget some of us don't have too many choices! But you are right it is madness

robin_banks

sp2 wrote: »

Gosh! We havent exchanged contracts yet on our part buy part rent but we are thinking of pulling out of our scheme because the HA say the property has not dropped in value since April 2008. We are concerned about being in negative equity. It also appears that people are having issues with selling places on due to unreasonable housing associations. Is seems to be a common issue. I dont have any advice but get you solicitor onto it.Sorry cant be of more use

It's almost certain that you'll be in automatic negative equity, my partner and I pulled out, and are we glad about it.!!!