Shared Ownership Rent Recalculation

Robability

Earlier in the year, I had a revaluation done on my shared ownership property, with the intention of staircasing and buying the rest. I found out that the value was now much less than when I bought it, and the maths for my affording the rest didn't really work out.

The valuation was carried out via the housing association, so they have a record of it happening and the result.

The rent on the shared portion each month is supposed to be calculated as a % of the value of the property.

I was wondering if anyone knew if, since I had the valuation come in at the lower amount, I had a case for asking the housing association to lower my rent so it is in line with the new amount. Usually they would do this following a successful staircasing application however I guess in this case its a little different..

I did call to ask the HA, but amazingly and unfortunately they don't appear to know, so I thought I'd turn to the fount of all knowledge that is the MSE boards, and only take it further if there is a case for it.

Thanks.

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*Repost due to incorrect board originally*

Wickedkitten

What do your documents say about rent increases? Is it tied into the RPI at all?

Robability

Yes. Rent increases are tied into RPI, but the amount of the rent is directly related to the value of the property, which is why I'm wondering if updated information on the value should be reflected in the rent.

I suspect it should, but I doubt many people ask the question....

poppysarah

What does the term actually say?

Robability

What term?

The issue ultimately isn't about rent increases, but about how they set the base value of the rent, and whether it should be changed according to new information. I don't keep the documentation in the office unfortunately, but as far as I am aware there aren't clauses specifically to do with this (which is probably why the HA is unable to answer the question).

Richard_Webster

Whilst it possible that the rent is tied to the value of the property if it were sold it is more likely to be a proportion of the rent for a similar property.

Housing Association Rents don't go down if property values go down do they?

So if rent is tied to normal housing association rents for similar properties then no reason for rent to go down. Usually SO rents go up each year by the RPI (and often by RPI + 1-2%)