Shared Ownership - Genesis - Atlas House, N17

andziapa

Hi,
I recently purchased shared ownership flat in London - Atlas House, N17 from Genesis Homes. Building is not finished and it looks like Genesis is strugling to do so. I exchanged the contract but yesterday Genesis contacted me asking informally to pull out.
If anybody is in the same situation, please contact me via this forum.

Thanks

Chris2685

If you can pull out without losing any money, or if they are even going to reimburse any lost money, then you have been very lucky indeed and should pull out as soon as you can

robin_banks

Agree with above, lucky escape.

GDB2222

Parts of N17 are rough and deprived. If you can pull out of this deal and buy somewhere nicer as prices fall, you may be much better off in all sorts of ways.

robin_banks

Genesis are also financially 'dans la merde', I know the scheme the OP was referring to and I would not be surprised if this scheme were mothballed.

robin_banks

Some interesting T&C's from Genesis homes website


You can sell your share at any time but you must let us know in writing that you would like to move.

[URL="javascript:;"]Can I sell it on the open market?[/URL]

Your lease may say that you have to offer to sell the property back to us. If we want to buy it we will have to pay you the current value. If we do not want to buy you can either sell the part that you own or buy the remaining share and sell outright.
Genesishomes also has a period of time, set out in the terms of your lease, in which to nominate a buyer. The reason for this is that we wish the properties to remain available to those for whom shared ownership was intended. If we fail to nominate a buyer in the given time, usually two months, or if the person we nominate does not exchange contracts within a specified period (usually 12 weeks) then you may sell your property to whom ever you wish on the open market.
If we do nominate a buyer we will charge a fee of 1% of the value of your share* on completion e.g. if the property is valued at £150,000 and you own 50% (£75,000) the fees will be 1% x£75,000 = £750.00. Estate agents will normally charge a higher percentage of the whole value which will be considerable more.
* Please note that this will increase to 1% of the market value of the whole property for leases created after 1st February 2005.


[URL="javascript:;"]What if the value of my property changes?[/URL]

You will benefit from any increase in market values but you must be aware that you may be affected by any fall in values. Unless you have owned the property outright (ie 100%) for at least three months the price you may sell for is restricted by the valuation (the valuation is provided by either the District Valuer or an independent valuer which you are required to pay for).This condition applies in order to prevent profiteering from shared ownership and to ensure that public funds are protected.

andziapa

Actually I was quite happy to buy as the price was good. OK, shared ownership is no perfect option, but at the moment the best for me (I think). Again, N17, not really good post code, but this house is small, in conservation area, just on the border with N22 and literally was built in the park... anyway, thanks a lot for your advices J

Fitzy32

I am about to venture into the world of Shared Home Ownership but have some concerns looking at the posts - I was looking to purchase a flat in Roehampton through Genesis, any advice?

Thank you.

robin_banks

TBH I'd give it a wide berth new schemes are overvalued, and if it is a flat the service charge is likely to be astronomical.

Getting a mortgage will be another hurdle, do you have a deposit. Many lenders who offer shared ownership will not be prepared to lend if it is a new build or has so many storeys etc.

If you need to sell , that's another thing entirely, they are an absolute nightmare to sell, and if you read the T&C's a percentage of any 'profit' made on the property.

Example you own 25% of flat valued at £200,000, the value of the element you own is £50,000.

5 years later the flat is valued at £220,000, the value of the element you own is £55,000.

You've 'made' £5000, but £2,200 has to be paid to the Housing Association.

A RIP OFF.

Fitzy32

Thank you very much for your response. Guess its worth looking into further and weighing up the odds against paying for private renting in London.

FTB1_2

Do you mind me asking what you actually decided to do, and if you proceeded how it went? I'm possibly about to exchange on a similar development that is not sounding too good...