Buying other half of house from Housing Association?

martyp

Hi all,

I bought my house as a 50% shared ownership in 2005 and am nearing the end of my 2nd 2 year fixed rate Mortgage deal.
The housing association will allow you to buy the house outright from them but won't advise on how you do it and my mortgage provider isn't really helpful.
How do I go about doing it?
The housing association said it would be 50% of the house value minus any improvements made (not sure how exactly they calculate that as I've made all sorts of improvements including a new bathroom?)
Can someone tell me the procedure and who I'd go to for doing all this?

Many thanks in advance

Meenu

Ring a housing association (any one) and pretend you are interested in signing up as a new customer.
When I was looking to buy more shares in mine they said to me is I just have to inform them when Im ready and they will draw up the paperwork. It wasnt hard.Will they let you own it outright? mine is a max 95%
Now is a good time to buy as your house is probably at a good price (current economic climate)
Good luck
If you write me a list of questions I would be happy to find out for you tomorrow

LinasPilibaitisisbatman

You need to ensure you can afford to do it. At that stage inform the HA who will value the house and the improvements and come up with the figure you need to pay.

I'd imagine some legal costs may be payable on top.

AMILLIONDOLLARS

Good luck you'll need it! Relative has been trying to buy from a HA to get themselves on the housing ladder. Valuation came back below offer price, now HA don't want to sell to them. So if its too cheap they may not want to sell it to you!!! Makes a nonsense of affordable housing!!!

Good Luck

AMD

chez22

I bought the remaining 50% of my house 5 years ago, it was pretty straightforward. I got a valuation done, HA agreed to it, I arranged my mortgage and solicitors did the rest. It was certainly easier than when I bought the first 50% and solicitors fees were less as they didn't need to do searches etc.

Meenu

Hope it works out for you

pineapple123

Every HA works slightly differently, To 'Staircase' you need to write to your HA then pay a fee for them to value your home, they will come out and give you a price taking into account your share of the property and any major improvements, new bathroom, kitchen etc that would enhance the value of your home, they then will deduct this from the remaining valuation.
but firstly you then need to approach your morgage lender for morgage for remaining amount you need to borrow.
From experience the only high street lenders that understood this scheme was Portman BS and Nationwide but that was years ago maybe different now.
Once you have agreement to borrow remaining money you need to seek advice and help of a solicitor, again only certain places fully understand part rent/part ownership agreement, go to one that has no experience of HA staircasing and it could cost you more.

The best advice I can give you is to contact your HA again
ask them to give you information and help on how to purchase further share and get them to give you a list of morgage lenders and solicitors that understand the scheme.

Your HA must have information on further puchasing of shared homeownership, however many individuals do not understand how it all works, as I learnt from experience.

once everything is in place the actual puchasing of the share is easy but you only have a certain amount of time allowed between valuation of property and completion of share purchased.

Mac_Sami

pineapple123 wrote: »

...you need to write to your HA then pay a fee for them to value your home...

Why do you, as a buyer, have to pay the seller to value the property, in order for you to buy a share from them?

When you buy a property, you don't look at it, pay the seller to have it valued to then establish their price. You know the price before you decide to look / buy.

pineapple123

Hi Mac Sami,
The terms and conditions are in the agreement that you first sign, I know its abit strange for a buyer to value there home but theHA are both sellers and landlords in affect, the valuation takes into account improvements to your property since first puchased and these are deducted from the share price that you puchase.
As you are already part owner it is different than puchasing a 'new home'
also the rules are different when you come to sell if you only own part share be it 25% 50% or 75%.

lynzpower

AMILLIONDOLLARS wrote: »

Good luck you'll need it! Relative has been trying to buy from a HA to get themselves on the housing ladder. Valuation came back below offer price, now HA don't want to sell to them. So if its too cheap they may not want to sell it to you!!! Makes a nonsense of affordable housing!!!

Good Luck

AMD

Exactly waht I was going to say, dont be surprised if the surveyor & the HA have very different ideas :cool::eek: