Shared ownership - need some help please

kmkm86

Basically 18months ago we bought 25% of our house for 31,225 we looked into shared ownership and thought there wasn't a problem the rent worked out as the same as the mortgage so in total we were paying out £550 including all insurances needed even though were renting 75% basically we were told we could decorate do what ever we wanted inside so long as we didnt change anything structurally this included bathroom suite, kitchen (and fitted appliances) roofing, draining plumbing or central heating system and windows - we live on a corner and had to ask permission to put up iron raillings round the front garden which was granted we even had to ask (in writing) if it was ok to have a sky dish and the alarm box fitted to the front of the house - thankfully they granted these things however we have had alot of vandalism done to the car (the drive way is at the back and is also open (we just couldnt afford to fence it in) in the end after 6sets of tyres (£1200) 2 sets of front shocks ect (£800-900) and various other things done to the car we had to sell it (we got £500) anyway we have saved for a fence & they have refused us to build a wooden fence around the parking space as it will be a perminant fixture!? (No more than the iron railings on the front!) Of course sorting the car out got us more in debt which we are hanging on by our fingernails, basically we are now finding out that if anything go's wrong with the boiler / plumbing / windows / bathroom / kitchen its us that fork out for the whole amount! Thankfully we have been quite lucky that nothing has gone wrong although other neighbours havent been so lucky. The people we have bought the house with have now risen our rent again - we moved in 1st Nov 07 rent was risen from £240 to £250 in Jan 08 and now to £260 from 1st April. Can they keep doing this?! I know its only a tenner but I dont know how much more we can put up with! We have a service charge which is for building insurance & if we need a call out for anything there is a 24hour call out line but also they add on landscaping and other things (communal lighting) which are todo with the flats that are also shared ownership at the bottom of the street surely we shouldnt be suplementing the flats for one thing and they have refused point blank to "maintain anything" but we have to go through the firm they have the contract with that costs a bomb if anything go's wrong - i.e. a leaky toilet (we cant fix or get dad to do it) cost us £70 for 20mins work! were as someone else could have done it for a fraction. Basically are we screwed!? or is there someone we can complain to?! We are now realising there is no way we will ever be able to buy the whole house and similary no way we are going to be able to sell it! I just feel like they are taking advantage of us and although they put the money up they are all too willing to leave us to it!? I know that a Landlord would be responcible and the idea we were given verbally was that if anything happened they would foot 75% of the costs so long as it was not cosmetic - like the fencing, so a leaky toilet or a busted boiler surely they should foot 75% of the bill?!

Any feedback would be great thanks!

poppysarah

I think you've just discovered what a con it is.

TBH I think in your circs I'd get in touch with one of the tabloids (the sun maybe) and email them with your plight - you've been utterly conned into this scheme that now leaves you skint with no advantages of ownership.
If you can get the paper interested in doing a story on your plight you'll get some money - but you'll also bring to attention the huge problem that exists with shared ownership.

It might not solve all your problems but the sun will pay for stories so you might get some welcome cash off them.

Jvic28

Not all shared ownerships are cons though. With mine for example I don't have to pay rent on the other share.

Thumper7

Hi,

All that you have said above would have been documented in the legal agreements. This is all standard stuff with shared ownership.

lynzpower

One major thing:

Have you bought this from a housing association OR from a company eg barratts etc

ruggedtoast

That was really hard to read. You need paragraphs.

In answer to your question you badly need to have a solicitor look over your contract with whoever the other interested party is in your house.

SO schemes are a con in principle but this one sounds like an actual con.

neb_3

you would have been advised of the rent increases when you bought, by your solicitor / conveyancer. Go back and speak to them if you werent advised properly. Check your Lease and see what it says re rent increases, service charge apportionments (ie are the flats you mention traeted seperately?), restrictions etc.

devon_guy

Rent will always rise year on year but it is capped too. Go over to www.tenantservicesauthority.org and that will tell you all about the rent and what they can charge. To be honest an annual increase of £10 a month is just over 4% which is well within guidelines.

talliedebtbuster

Hey, i thought i t read really well and i really sympathise with you. I have heard many simlar stories about shared ownership. The only thing that i can suggeset is try your hardest to buy the full 100% anyway you can. Then sell it and start again. Shared ownership is being sold to me like mad but i wont do it. It is not worth it. Why should you pay full service charge when you only own 25%, why the full per cent on everything. Its not right. Try for a keyworker rental. Much better.

Best of luck for you, i hope it gets better

Wickedkitten

Jvic28 wrote: »

Not all shared ownerships are cons though. With mine for example I don't have to pay rent on the other share.

So do you have 10 years or 25 years to pay back the equity portion?




To the OP, this is why you should actually read the bumf that they give you when you sign up for these things. Most of this stuff is actually on the website of companies that do these things and if not it will be in the brochure, let alone in the actual sales agreement

kmkm86

Firstly thanks for all your replies, sorry i havent had chance to reply this is the first chance i've gotten,

we have had our mortgage over 25years, and i've looked through all the stuff we were given and on the website but there is nothing in regards as to what we should / shouldnt have to pay maintanance wise and the lease agreement is a pretty standard one. Infact it seems pretty much identical to one we had from a flat we used to rent - maybe we could use this to our advantage if i pick it appart once the kids are in bed - i doubt it though - were not that lucky.

We have bought with a housing association but as its a new house they bought from baratts when there is something wrong they pass things back from one to the other - eg re the drains problem the association said we needed to get in touch with barrats and barrats would say its nothing to do with them they sold the house!

I think im going to get in touch with them regards getting some paper work as I'm certain we have never had anything like that.

I have found that unfortunatly there doesnt seem to be a "cap" on the rent so if they wanted to raise it (over years) then were stuck with it. We do want to buy the whole house at some point but unless things drasticly change thats never going to happen.

Sorry rugged toast - I did try to put paragraphs in but it squished everything up once i posted.

The housing association are government backed and are supposed to be a nonprofit organisation which is part of the reason why we chose them over another company that have houses in the area.

Once again thanks very much - its good to have a sounding board, going to phone them now see if i can get some paper work from them.