Shared ownership flat (sublet or sell?)

Bumblebee25

Hi All
I'm new so hello!
I have a shared ownership flat I have a mortgage on half and have done for almost 3 years now. Now I am planning on moving in with my boyfriend and wondering what to do as I don't want to sell and make a loss and have no investment of my own and not sure I am allowed to sublet?
Any advice can I rent out, should I try to buy the other half then rent?
I haven't had it valued so might be jumping the gun a bit but I'm pretty sure it will be below what I paid.

Thanks for your help
katy

robin_banks

You need to check with the HA if you can let it out,you will also need to inform your lender. It is doubtful the HA will let let you rent it out.

Shared ownership properties are a nightmare to sell as well, a year is not uncommon.

One of the many problems of shared ownership.

natti_smith

HI
I am also a shared ownership owner and have the same issue. I've put my flat up for sale as the HA wont allow me to sublet it despite the fact i have to move for personal reasons. I did want to staircase and buy the rest but i would have needed a huge desposit to do this due to the loan to value ratio cuts at the moment. It turns out i'll need less of a deposit to move into a bigger place! Crazy. If you have the deposit monies though you could buy the rest of your flat at a reduced rate as the market has dropped and rent it out yourself and use this income for your new place, but you'll need an understanding lender!

Maybe try and see if your HA will allow you, but if they're anything like mine they wont be much use! Apparantly my circumstances arent exceptional enough.

Good luck

chez22

I think its a bit of a sweeping generalisation to say SO properties are difficult to sell. Houses on my street have always sold well, quite a few within a week of being on sale. I have even had leaflets through my letterbox from prospective buyers wanting to know if there was any interest in selling. Admittedly things have slowed down recently but a house on my street was sold within a month in December.

SteveStone

What can they do if you sublet your shared ownership home anyway?

robin_banks

As you rent the property as well you are likely to be in breach of your tenancy, in extreme cases they could evict.

All part of the shared ownership problem, you have this strange hybrid of owning and renting so although you have a mortgage the property ain't yours and is never likely to be and you can still be evicted.

Although you rent you are responsible for the majority of repairs, and cannot sublet or alter the property without consent.

savings_guru

What happens if they evict you, will they buy your share from you?

It seems silly as you own 25-75% of the property.

I'd argue its better to sub-let to pay off the mortgage, then get repossessed, as the HA lose nothing.

SteveStone

I can't see how they can evict? as guru has said surely this would mean they would then need to buy my share back?

robin_banks

The HA can obtain a court order and basically force you to sell your share, it may be the case they can then evict.

As I said it is extreme, and it doesn';t appear that there has been any cases of this.