Shared ownership premium

loooceee7

Hi,

I'm in the process of buying a 50% share on a property and have been advised that there is a £1500 premium on top of the asking price for 'fixtures and fittings' and 'improvements made to the house'. The fixtures and fittings include a shed, curtains, a freezer and an air con unit - all of which I don't really want - does anyone know if this negotiable?

Spartacus_Mills

loooceee7 wrote: »

Hi,

I'm in the process of buying a 50% share on a property and have been advised that there is a £1500 premium on top of the asking price for 'fixtures and fittings' and 'improvements made to the house'. The fixtures and fittings include a shed, curtains, a freezer and an air con unit - all of which I don't really want - does anyone know if this negotiable?

Well give it a go. You have nothing to lose by trying.

brit1234

Not another extra cost on shared ownership. lol This is such a cowboy scheme, my friends regret ever doing it.

It may be ok if you are happy not saving a deposit to live in a smaller than normal property at extra cost than normal properties, but its a nightmare to sell in a downturn.

Many of us key workers have been told to stay well clear by ind. finiancial experts.

Muhasib

Is this being purchased from a private seller or from a Public Body ? It seems unusual for a HA to use this as a condition of sale.

loooceee7

It's being sold through an Estate Agent - the HA don't normally allow added premiums - I can't help but think it's part of the Estate Agent's cut!

tek-monkey

Just say its OK, and they can keep them.

bitsandpieces

If you're buying it from a private seller, through an EA, these things should all be negotiable. I don't see how this is a shared ownership premium: people can charge (or not) for fixtures and fittings with any property sale. In my experience, when curtains, freezer etc. are offered for sale, the purchaser can decline to buy them but still take the property (I was offered lots of furniture etc. with mine, negotiated a price on just the curtains). Of course, your seller *could* refuse to proceed unless you take them, and a shed may be hard to remove.

The property isn't near the stamp duty threshold by any chance? This type of thing can be used to reduce stamp duty (although the taxman may be unhappy if the fixtures you're buying don't not merit the price).

tek-monkey

Good point, this doesn't actually have owt to do with SO really. Just a seller wanting money for leaving behind their stuff, which if you don't want you shouldn't pay for.

bitsandpieces

tek-monkey wrote: »

Good point, this doesn't actually have owt to do with SO really.

Creative approach, though

Just noticed that they are wanting to charge you for "improvements made to the house", too. That's a new one on me - if you own a property, you might decorate it nicely, extend it, etc, and hope to make some of this back when you sell, but this is included in the asking price. If you do pay this charge, make sure you're paying the correct stamp duty (I would imagine that money paid for 'improvements' should have stamp duty paid on it, but sure your solicitor can advise).

tek-monkey

Indeed, any improvements to the house will be reflected in the sale price. Should definately not be a surcharge, sounds suss to me.

robin_banks

Leaseholder improvments may well be chargeable. I'd really avoid any shred ownership/ equity scheme.