seen a shared ownership property on rightmove.....

downs523

seen a 75% shared ownership property on right move for sale. is it possible to put an offer in for 100% instead of buying 75%.

robin_banks

Avoid This Scheme Like The Plague :eek:

downs523

robin_banks wrote: »

Avoid This Scheme Like The Plague :eek:

yes i agree this is why i want to buy it outright and not 75% was wondering if its possible

poppysarah

Ask. Chances are they've got an estate full of property they can't sell.

But pay 75% for 100%

Richard_Webster

There are a lot of people out there who are saying SO is a racket. This is because Housing Associations have been stuck with overpriced new properties and people can end up paying a percentage of an inflated price which immediately puts them into a negative equity.

However, if the price is 75% of a reasonable current market price for that kind of property then it isn't so bad in that respect.

You have to ask a lot of questions because you could end up spending money on survey fees, searches etc and then find that the seller isn't allowed to sell the place to you!

Firstly is the seller actually able to sell the place on the open market? A lot of people don't understand the restrictions and happily go to an estate agent to sell their SO property when they should be approaching their Housing Association (or whoever the freeholder is). Usually they have to offer it first to people on the HA's list, at a price determined by the HA's surveyor, which may or may not be realistic.

There are some schemes where there is a freedom to sell the 75% but there could still be restrictions on who can buy it, e.g. you mght to have lived in the area for X years.

If there is a HIP then the lease should be in it and you should ask to see it. That will give the answers to these points - but it may not be easy to understand and you may need a solicitor to explain it to you.

Secondly, can the seller deliver the 100%? Sometimes they are allowed to do a "back to back" transaction where they use the buyer's money to buy in the remaining percentage and then immediately transfer the whole 100% to the buyer. However the standard modern SO lease contains a booby trap that means in practice that the seller has to have owned the 100% for at least 3 months before he can sell it.

icebergx

Yes you can offer on 100%

downs523

thanks for all the info ppl

jonathon

i think it depends on the h/a some you can only buy in steps so you would not be able to buy 100% untill you have been in there for some time

before_hollywood

one near me they say buy 75% and then on completion of sale they let you buy the rest.

is it a thrown up flat in a block that is being used by btl landlords to rent overpriced ****tips to the local authority at private rent prices?
oh, just here then :eek:

robin_banks

Evidence from the housing corporation suggests only 3% of people 'stairgate' shared ownership. The whole scheme is a shambles.

downs523

its ahouse, 3 bedroom semi, with garage on for 125k 75% ownership