Can you haggle on Price of new development if its a Shared Ownership?

ukbondraider

Hi all,

I am looking to buy a flat that cost £260K of which I will buy 50% at £130K initially via shared ownership.

My question is whether I can go to the housing association and bargain the price down like I would if it was a normal development i.e put in an offer of £125K for 50% indicating I feel the place is valued at £250K?

Or do I simply have to take the price set.

Thanks

IN_LIKE_EVERYONE_ELSE!

You will probably find another 100 people in the queue behind you, stop being greedy, get the house and live in it.

suki1964

Short answer is NO

The HA is there to make money out of the deal. The one thing you also have to remember is when you decide to move - the HA will sell your share - at a set price as well - no holding out for a better price.

The good thing is when selling is you have a buyer straight away, bad thing is, you wont get as much as you could if it went on the open market - I was down £10k

mpsavuk

If you can't afford %100 of a property then why get in debt to the tune 0f £130K for %50 of a place that you will be paying a mortgage and rent on but can never call your own?

I'd give it a big miss myself!!

zag2me

as suki already said, you cant haggle on prices for shared ownership, they are fixed. You should be buying them at a discounted rate compared to normal buyers though.

ukbondraider

mpsavuk wrote:

If you can't afford %100 of a property then why get in debt to the tune 0f £130K for %50 of a place that you will be paying a mortgage and rent on but can never call your own?

I'd give it a big miss myself!!

Because I want to lock in the property which as well as being in an ideal location is cheap relative to similar properties in the area, with a view to acquiring 100% of the property in the near future.

zag2me

mpsavuk wrote:

If you can't afford %100 of a property then why get in debt to the tune 0f £130K for %50 of a place that you will be paying a mortgage and rent on but can never call your own?

I'd give it a big miss myself!!

Shared ownership is a fantastic scheme for some people, dont knock it. You can always up your share as you progress in your life/career

suki1964

mpsavuk wrote:

If you can't afford %100 of a property then why get in debt to the tune 0f £130K for %50 of a place that you will be paying a mortgage and rent on but can never call your own?

I'd give it a big miss myself!!

Without shared ownership, we (hubby and me) would never have got a step on the property ladder. We bought a 50% share of a property and ok so when we sold recently we didnt do as well as we would have if we had the choice of selling on the open market, but we are still walking away with 50% of the purchase price of our new property.

We have moved on and now someone else is being given the chance of the getting on the property ladder. Dont knock it just count your blessings that you are in a posistion that you are not looking at it as an option

mummytofour

mpsavuk wrote:

If you can't afford %100 of a property then why get in debt to the tune 0f £130K for %50 of a place that you will be paying a mortgage and rent on but can never call your own?

I'd give it a big miss myself!!

WRONG! as much as I hate S/O my share gone up by 55k since i bought it... and thats at the valuation NOT EA

AndrewSmith

Re haggling on the price:

If the property is on a development of shared ownership homes (key worker homes, low cost housing as it is sometimes called) built by a housing association specifically for this purpose then you are unlikely to get any reduction.

If, however, you have registered with a Housing Association and are buying a house in conjunction with them on a 50% shared ownership basis through and Estate Agents then Haggle Away as per a normal purchase.

The short answer is dependant on who currently owns the property.

Housing Association = No Haggling
Private Sale = Haggle as much as you like

Hope this helps

Andy

mpsavuk

mummytofour wrote:

WRONG! as much as I hate S/O my share gone up by 55k since i bought it... and thats at the valuation NOT EA

No,my argument still stands. If you owned 100% then you'd have 110k equity wouldn't you!(If you've worked out your share of equity correctly, a mistake an awful lot of S/O's make quite easily)

And you still pay rent & mortgage on a place you can't call your own.

When the time comes time to sell whose gonna buy your share off you? What if prices come down and wages go up enough to enable people to buy outright over the next few years?

You'll be well and truly stuck with it!