Shared Ownership Hell

FixingIt

twirlypinky wrote: »

have you told the HA that if they don't help you then you're going to end up going bankrupt? They must have tenants waiting to move into houses, perhaps they just don't realise just how dire your needs are?

No, but this is looking like the best option. I'd hate to lose my credit rating (although not fab, I can still get credit if need be) but if interest rates went up then this would be unavoidable anyway.

I don't think I'm on the brink of bankruptcy yet though, although I may not be able to pay my rent and service charge soon.

FixingIt

mynameisdave wrote: »

You can get rid of the furniture from it and let the council know it is unoccupied. This will give you 6 months of zero rate council tax. Have you already tried this for the first 6 of the 18 months?

I've never had a zero rate but I've had a 50% discount already for over 6 months.

PasturesNew

This is one of the problems with SO property, they're good for some people, but not for the majority. If you simply wanted a nice place, where you wanted to be, and were using it to secure your tenure for life, then you'd still be sitting in your flat, happy as Larry.

The main problem with SO comes when somebody wants to sell. Then you find out all the 101 reasons you can't sell, that you blanked when you first bought it.

What's the block like? I am presuming, as you aren't allowed to let it, that it is ALL Owner Occupiers. Make a big thing of that in the agent details. Point out that the flat's lovely because all the neighbours own their homes, creating a sense of community.

How well priced is yours, compared to others? Right now, on Rightmove in Manchester city centre, there are 12 1-bed flats of the SO type available, some are cheaper than yours. I notice one has given some sample costs in their blurb, not sure if your agent is legally allowed to give those sort of figures. Their wording says:

"You will need a £10k deposit and then your mortgage payments are likely to be around £320 per month based on an interest only 20 year mortgage. That's a great deal cheaper than renting and you will own a 50% share of this fantastic property"

The SO scheme seems good, but when you come to sell it does exclude a lot of people that might have bought it. I wouldn't be allowed to buy it probably. I'd assume I couldn't. It might be worthwhile adding some blurb about who can buy it, what SO is etc. There are actually lots of dim people out there that would think it means they're buying into a flatshare! .. and, quite rightly, they don't want that.

Hannah_10

FixingIt wrote: »

I don't think I'm on the brink of bankruptcy yet though

Ahhh but the HA do not know this. Go for it and give it your best shot.

FixingIt

PasturesNew wrote: »

What's the block like? I am presuming, as you aren't allowed to let it, that it is ALL Owner Occupiers. Make a big thing of that in the agent details. Point out that the flat's lovely because all the neighbours own their homes, creating a sense of community.

The block and flat are both perfectly fine, clean and well looked after. The flat still looks like a new build, walls the same colour and no dodgy d!cor.

How well priced is yours, compared to others? Right now, on Rightmove in Manchester city centre, there are 12 1-bed flats of the SO type available, some are cheaper than yours.

Last time I looked on rightmove, it was the cheapest SO at 50% along with one other flat on the same street. It is right in Manchester CC, a 1 minute walk to Piccadilly Gardens. I don't know if that has changed or not.

I notice one has given some sample costs in their blurb, not sure if your agent is legally allowed to give those sort of figures. Their wording says:

Their information is actually incorrect. The mortgage may be cheaper, but add on rent and service change and it becomes dearer than owning the full lot outright, that's what's screwing me. I definitely had blinkers on when I bought it but trust me, neither I or people I know closely will make the same mistake.

FixingIt

Hannah_10 wrote: »

Ahhh but the HA do not know this. Go for it and give it your best shot.

I'll definitely be following the advice about speaking to the independent gov. advice agencies and the HA. Thanks.

gravitytolls

Long shot ~ buy the other 50% then sell as a whole?

nonnyd

Hi there,

I'm in almost exactly the asme boat as you.

How did you work out that it would cost you £12,500 to sell?

I went to see if I could buy the other half of my falt (my mortgage lender all but laughed at me) and they said I'd have to pay around £5000 to cover the negative equity in the half I do own (because of the depreciation in value). Does that mean that's how much I'd have to give them to sell up.

I feel for you, it's such at nightmare and at least I'm living in mine!

FixingIt

nonnyd wrote: »

Hi there,

I'm in almost exactly the asme boat as you.

How did you work out that it would cost you £12,500 to sell?

I went to see if I could buy the other half of my falt (my mortgage lender all but laughed at me) and they said I'd have to pay around £5000 to cover the negative equity in the half I do own (because of the depreciation in value). Does that mean that's how much I'd have to give them to sell up.

I feel for you, it's such at nightmare and at least I'm living in mine!

I just used the math. Mortgage is 60k, up for 47.5 and STILL not even getting viewings so 12.5 IF someone buys it at 47.5.

I'm making an appointment with citizens advice because I've just worked out I cannot make my bills next month or months after that. Looks like I'm going under so I'll be needing advice in the future no doubt. I refuse to borrow more money to pay for a flat I don't live in, it's going to end bad, I don't see how this can be avoided.

Like you say at least your living in yours but I still feel your pain.