Shared Ownership Help?

youngmcc

Hi

Been a hectic week for me so far! Only decided on Monday that I best get my !!!! in gear and have a look at mortgages etc. However, Monday afternoon came along and I spotted a flat that I fell for!!!

25% share in a flat on offers over £32,000.

So finally got a meeting with my mortgage advisor today and got a quote of how much I can borrow etc. All is fine their!

Tomorrow at noon is the closing date of the flat! So if im going to go for it I need to get my !!!! in gear!

The quetsion that I want to know though is that what happens if I say I bid £40,000 subject to survey for example. It gets accepted and then the full flat gets valued and turns out that its only worth say £140,000.

Would I then have to make up the difference of the £5,000 or will my mortgage still cover this?

dmg24

Is this property for sale in Scotland or England?

The housebuying systems are very different in the two countries.

youngmcc

Scotland.....................

lynzpower

My understanding is that "offers over" shouldnt work with Shared Ownership, being a Shared owner myself, I would have thought that offers over would completely undermine the whole process of shared ownership & what its for.

when i bought this flat, my lender valued it as less than the price, I tried to negotiate down, no joy, so I stumped up the shortfall of a couple of grand.

izoomzoom

Hi

Having researched SO for the past two years in my own effect to purchase a house, I have always found that the Housing Association values the property (with the help of an independent valuer) and that is the price the property sells for. The price only really becomes negotiable when the HA has failed to nominate a buyer and the property is put on the open market (ie a EA) but the HA still has to approve the purchaser.

Properties are allocated on a housing need basis. Ie Joe Soap needs this house more than you do because (eg) he is overcrowed at home, has more / different sex children. Alternatively it might depend on how long you have been registered with them.

HTH

dmg24

The advice that has been given appears to relate to the English system. The Scottish house buying system is very different, so the OP really needs to research into the Scottish system.

thelawnet

youngmcc wrote:

Hi

Been a hectic week for me so far! Only decided on Monday that I best get my !!!! in gear and have a look at mortgages etc. However, Monday afternoon came along and I spotted a flat that I fell for!!!

25% share in a flat on offers over £32,000.

So finally got a meeting with my mortgage advisor today and got a quote of how much I can borrow etc. All is fine their!

Tomorrow at noon is the closing date of the flat! So if im going to go for it I need to get my !!!! in gear!

The quetsion that I want to know though is that what happens if I say I bid £40,000 subject to survey for example. It gets accepted and then the full flat gets valued and turns out that its only worth say £140,000.

Would I then have to make up the difference of the £5,000 or will my mortgage still cover this?

that's when you pull out!!!!

If it's only worth £35k, why would you pay £40k for it????

25% of a shoebox, hmmmmm.

realwildone

Seems to me you want a deal at any cost. They cannot give flats away at the moment. Why pay more

lynzpower

I have a shared ownership and there is no way in hell id buy into the offers over bit. Undermines the whole bloody purpose of affordability.

Id walk away & keep saving. Or move south of the border :rotfl: