Shared Ownership _ Urgent Help!

AKK_3

Hi Guys

I am hoping someone on here knows about SH or has gone through the process. I have a few days to decide whether I want to buy a shared ownership property (2 bed flat). I feel under a lot of pressure because they want you to complete with in 28 days, and I dont even have a solictor sorted yet.

I need convincing that this is a good move and if for some reason it doesn't work out, I can get out of it easily!

Any suggestions on a good solictor?

The development I am considering, has no allocated parking. Although I have been told there is some parking available further away, which isn't ideal but better than nothing! I must say this is putting me off a little but what I like about the flat is that it has a separate kitchen rather than open plan kitchen/lounge.

Also what are the rules about letting a room out, if you are living there of course!

Thanks
A:j

rchddap1

Also what are the rules about letting a room out, if you are living there of course!

Depends on the terms of the Housing Association. Only way to find that out is to ask them.

lynzpower

TBH they always say complete in 28 days.

What they mean is get your AIP sorted and then instruct. In all fairness it does seem to be the HA sols who hold the process up!

STAR_BUCK

:T Good luck AKK!! :j :dance: :EasterBun

Christal_2

Me and my OH have bought our current property through Shared Ownership scheme couple of years ago, with SO you have to be aware that:

1. Most banks/building societies do not lend to people who is buying through SO, unless you are buying 100%, then it's same with any other purchase. I we asked around but in the end it's only Halifax can lend to us, and obviously you have a much smaller choice of products.

2. To let a room out you have to get the approval from the HA simple because you don't own the place 100% so you need their approval on this, they may agree but may not. As far as I'm aware our HA doesn't let anyone to let a room out unless you have purchased 100% share already.

3. You need to be aware of the neighbourhood, not saying it's all bad people or what, but you do get some not very pleasant council tenant from time to time. We had one guy living on the council house side threatening to kill another lady who lives on the SO side for no reason, and he was forced to move out, the police had to come to make him move though. And within 3 months of move in the door on the council house side is already broken and you see all kinds of people coming and go in the middle of the night.......

I like my place but if I can afford I want to move out....

AKK_3

Well I have been in touch with the housing association and they said I needed to send off the memorandum of sale asap otherwise they will give the property to someone else. However, I still have some time to change my mind before it reaches a certain point!

I asked about letting out the second bedroom and they have said that I can do what I want with it, except of course letting the whole place out!

They also just informed me that we get a years free parking at the station car park and that there is some parking available on side streets nearby.

Soprano

I would check the T&C of any future sale.

Some places will not let you sell to anyone other that another HA tennant and the sale price is less than "real-world" prices. This would put me off. If I own 100%, then its up to me who I sell to any by how much!

AKK_3

I think the housing association have 3 months in which to find a person to buy the share you own and if they are unable to find one then you can sell on the open market. However I will check this with them!

Soprano

AKK wrote:

I think the housing association have 3 months in which to find a person to buy the share you own and if they are unable to find one then you can sell on the open market. However I will check this with them!

Very off putting that. I would imagine it would be fairly easy for the HA to get someone to buy your place, in todays climate.

Do you know the percentage off the market value they would offer?

Mark_petty

I have had a SO for 2.5 years. I have just sold it below are some pro's and cons:

Pro's:
Gets you on the ladder
Anything that goes wrong with the building e.g roof etc HA will pay
Any annoying neighbours are dealt with HA
A lot of people want SO so selling it isn't an issue.

Con's:
When you come to sell you cannot choose who you want and maybe messed around.
You still pay rent on the other share
You will have to pay maintenance fee's
If the HA is anything like my one they are useless and very unhelpful. I found they were good when buying but once you need help they don't care.
You can't do any major work unless the HA agrees
If you want to buy another share this costs money (solicitor fees)
When you want to sell it costs quite abit. For example our share was sold for £87500 we had to pay £875 + vat and £150 for solicitor fees
You do not choose the price when you come to sell. You have to pay for a independant surveyor this can cost between £90 - £200

lynzpower

AKK wrote:

I think the housing association have 3 months in which to find a person to buy the share you own and if they are unable to find one then you can sell on the open market. However I will check this with them!

Lots of scaremongering in this thread, with lots of half truths and recieved wisdom

The issue I reckon is that each lease it different, regardless whether its a SO lease or a bog standard leasehold lease on an open market flat, ANY leases may have terms in yu may find onerous. Only you & your sol can sort through that.

Secondly, I understood that i would have to offer property back to the HA for them to market. NOw I have approached them & said Im selling, they said they are not keeping lists ATM, and that I can sell on open market with an open market valuation.

It really depends on the HA tbh.