Overpriced shared ownership house?

burterelly

Two years ago I bought a new Shared Ownership house from Moat Housing for £200,000. The house 2 doors up was valued the same.

I have since found out that the people who acually purchased that house 6 months after me only paid £160,000 for it.

How have Moat Housing charged me £200,000 and my neighbours only £160,000?

Has anyone else had this problem?

Does anyone know if I can do anything about it as by all accounts, the day I moved in, I was immediately £16,000 in negative equity!

Any advice welcome please

Cannon_Fodder

24 and 18 months ago were different times for the developers.

They were ignoring the gathering storm when you bought, so thought they could ask what they liked. You decided you wanted to pay that, no-one forced you to, so you have no recourse.

6 months later, hardly anyone could get a mortgage, the developers were going to the wall or losing millions, so they discounted heavily to shift whatever they could.

Hence, your neighbours got a lower price.

If it was the other way round would you want to pay extra, now?

Hundres of thousands, maybe millions, are in negative equity, right now. Many from day one. Live in your house, enjoy it, in a few years this will be a distant memory. You'll have other worries, like how to sell it, the inability to rent it out, etc.

One wonders where you have been for two years to only now notice.

PasturesNew

It sounds like they negotiated down hard in a fast-falling market... and you didn't.

They bought at a different time to you.

Not only that, but £160k is now what your house was worth when they bought it ... less any market falls since then.

I bought into a SO house, 50% of it, back at the previous peak (about 1990ish).... I sold it seven years later at 5% less than what I'd paid for it. Many of us have been there in the past, many are there right now .... and in the future I'm sure others will be in this position too.

burterelly

It looks like I was well and truly stitched up.
What if my house was not worth £200,000 which it clearly wasnt it. Its fair to say I agreed to pay that price for it, but If the Surveyor said it was worth £200,000, thats what I thought it was worth. Surely the surveyor should have picked up on the fact that it was overvalued? Is that not what we pay them for?

Trollfever

This makes a change from the under valued threads.




.

Eric1

Trollfever wrote: »

This makes a change from the under valued threads.



.

Certainly does

burterelly, look at this one
http://forums.moneysavingexpert.com/showthread.html?t=2350711&highlight=

wymondham

You obviously thought it was worth £200,000 at the time?

It was a new property and shared ownership, so all indicators are there that it would have been priced high.....

PasturesNew

Can you tell us:
- first part of your postcode
- month/year you bought
- month/year your neighbour bought

Were they both new? Both second-hand? Or what?

burterelly

me4, i bought 07/2008, neighbour 01/2009,

thanks for all your replies,

B

frafferty

burterelly - are you on the island? If so, it is ridiculously overpriced on there anyway

Fire_Fox

burterelly wrote: »

It looks like I was well and truly stitched up.
What if my house was not worth £200,000 which it clearly wasnt it. Its fair to say I agreed to pay that price for it, but If the Surveyor said it was worth £200,000, thats what I thought it was worth. Surely the surveyor should have picked up on the fact that it was overvalued? Is that not what we pay them for?

You were not stitched up: as others have said six months is a long time in a recession. A surveyor values a property on the day that he sees it, not two months later or six months later when you complete the sale.