URGENT HELP WITH MY SO SELLING- advice from the brains of property please!!!

dougk_2

He was told after the 6 months he can sell the house as a complete sale eg 100% of the house then pays 50% of it to the HA, so in this case they will make money out of it so you would think at this stage he should be able to sell for whatever he can get (if its more than the valuation).

I think most of the problem is his HA has changed hands since he purchased and are now not even based in the same area, so they haven't really a clue pf the locality, who wants houses and they employ lots of temps who don't really care or don't really understand the "business". They are also very slow at doing anything so potential buyers get p'd and give up.

Richard_Webster

As a Conveyancing Solciitor (http://www.rwco.co.uk) I do find that Shared Ownership sales can cause confusion.

If you haven't already bought the whole 100% then you have to sell to someone on the list provided by the Housing Assocation at a price agreed by them.

In some cases you can arrange to buy-in the other share from the Housing Association and then sell the 100% on immediately to the buyer but you will have to get the Housing Association to agree how much you pay for the remaining share and this takes time.

However, it is increasingly the case that Housing Associations are trying to find ways of making it difficult for people to sell on the "open" market because they want to retain as much "affordable housing" under their control as they can. So one "booby trap" I have seen is that if you buy in the remaining share (carry out final staircasing in their jargon) if you do not keep it for 3 months a buyer may have to pay the Housing Association the extra increase in value (if any) between the date of his purchase and a date 3 months after the final staircasing. This is really there to put a buyer off and it would certainly put his mortgage lender off!

This is to discourage the back to back transaction that uses the buyer's money to complete the final staircasing. They don't mind the Shared Ownership Lessee raising a larger mortgage to buy the final share because if they go to that trouble they are probably going to stay there for a time and not immediately sell it on at a profit.

Another thing to watch is that the lease may restrict who can live there to the person who owns the lease (or if it is a house, and it is finally staircased, the freehold) and his family, thus stopping a person using it for buy to let!

When you bought, your solicitor should have explained what your options were when you wanted to sell. I would therefore not just take an offer from a buy to let investor who says he can pay cash until you have checked with the Housing Association what you can do - and remember the staff there may not understand all the legal wording - and preferably a solicitor has had a look at the lease for you to see if there are any restrictions.

I once had a client who thought he was buying a finally straircased ex Housing Association Shared Ownership Flat. The seller had been pushed to some useless solicitors by the estate agents, and there was no paperwork to suggest that the flat had been finally staircased. There was also the booby trap I mentioned above. I wrote to the other solicitors raising these points and they obviously hadn't looked at the paperwork. My client wasted good money on a transaction that was doomed to failure, because it took me some to wade through the papers, spot the problems, and ask the right questions of the seller's solicitors who being a "factory" set up, didn't understand what I was on about!

If you have not got it right now and checked that you can sell, and who you can sell to, then there could be delays later, and you might find that if you are buying something else, you lose that property because of that.

Doozergirl

I'd be careful that this guy doesn't really know what he's doing, but as he's trying to talk to the Housing Officer, he'll find out what he needs to know soon enough. Keep viewing until you have confirmation of survey or if he isn't having one, then decent communication between solicitors (and some positive feedback from the Housing Officer too, I think).

On the 'regular' side regarding accepting offers, you've only been on for one weekend and you can take full advantage of this to try and get full asking price. If the offer is that close to something you will accept, he will go higher. No one expects their first offer to be accepted - you know that! Can you give the other interested party a courtesy call and tell him you've had an offer, see how he's getting on with his AIP? (hint, hint!)

Work it, girl! You're in the business of making money here.

lynzpower

Richard_Webster wrote:

As a Conveyancing Solciitor (http://www.rwco.co.uk) I do find that Shared Ownership sales can cause confusion.

If you haven't already bought the whole 100% then you have to sell to someone on the list provided by the Housing Assocation at a price agreed by them.

I own 40%. I offered it back to the HA and they said that they are not keeping a list ATM and I should sell on open market. I have got 3 valuations from EAS, and they were very high. I chose to market at less than what the EAs had valued it at as a) it owuld be nearing the cieling price for the rd, and b) I dont think it was worth what they said it was. In any event, we now have a buyer from the open market.

In some cases you can arrange to buy-in the other share from the Housing Association and then sell the 100% on immediately to the buyer but you will have to get the Housing Association to agree how much you pay for the remaining share and this takes time.

However, it is increasingly the case that Housing Associations are trying to find ways of making it difficult for people to sell on the "open" market because they want to retain as much "affordable housing" under their control as they can. So one "booby trap" I have seen is that if you buy in the remaining share (carry out final staircasing in their jargon) if you do not keep it for 3 months a buyer may have to pay the Housing Association the extra increase in value (if any) between the date of his purchase and a date 3 months after the final staircasing. This is really there to put a buyer off and it would certainly put his mortgage lender off!

This is to discourage the back to back transaction that uses the buyer's money to complete the final staircasing. They don't mind the Shared Ownership Lessee raising a larger mortgage to buy the final share because if they go to that trouble they are probably going to stay there for a time and not immediately sell it on at a profit.

Another thing to watch is that the lease may restrict who can live there to the person who owns the lease (or if it is a house, and it is finally staircased, the freehold) and his family, thus stopping a person using it for buy to let!

I know this. my feeling is this chap IS an investor but he states hes a FTB ( looked the type dare I say it- investor I mean, and was very interested in the extra shares, and when ihe could get them).

When you bought, your solicitor should have explained what your options were when you wanted to sell. (As above) I would therefore not just take an offer from a buy to let investor who says he can pay cash until you have checked with the Housing Association what you can do - and remember the staff there may not understand all the legal wording - and preferably a solicitor has had a look at the lease for you to see if there are any restrictions.

I once had a client who thought he was buying a finally straircased ex Housing Association Shared Ownership Flat. The seller had been pushed to some useless solicitors by the estate agents, and there was no paperwork to suggest that the flat had been finally staircased. There was also the booby trap I mentioned above. I wrote to the other solicitors raising these points and they obviously hadn't looked at the paperwork. My client wasted good money on a transaction that was doomed to failure, because it took me some to wade through the papers, spot the problems, and ask the right questions of the seller's solicitors who being a "factory" set up, didn't understand what I was on about!

If you have not got it right now and checked that you can sell, and who you can sell to, then there could be delays later, and you might find that if you are buying something else, you lose that property because of that.

Thanks Richard this is immensely helpful.

I am trying to get hold of the HA in any case to discuss.

My personal feeling is that I dont want to sell to an investor however, we do need to leave and we are moving into rented in any case, so thats not too big a problem. I dont want to get to the stage where I pull the place off the market, then he doesnt want the lease- as it does have those restrictions as you said, no subletting.

2 weeks is no time at all ( just enough time to pack!) with this whole no survey, no searches, He could be in and find out he cant sublet as per the lease. I personally dont care what he wants to do adn what hot water he gets into with the HA, but I dont want to lose perfectly good buyers, by pulling it off the market. We have had a fair amount of interest so far, and viewings daily till saturday are planned. BUT, we need out.

What do you suggest?

hex2

Lynz,

I should accept and tell him that you will keep it on the market until exchange. Not your problem what he does with it afterwards. Use a no sale no fee conveyancer then if it falls through due to the HA then you have lost nothing. I would also tell him that you will need two weeks between exchange and completion to find somewhere to rent then you commit nothing till exchange.

Congratulations though - a nice dilemna to be in.

lynzpower

thanks hex

Good job we dont need to do much cleaning before we leave innit!

hex2

and I am going to be pretty peeved if you beat me to moving.......

If you source a cheap supply of boxes please let me know.

lynzpower

hex- local newsagents. I better start buttering them up

lynzpower

Ok, finally spoke to the HA.

Upshot is that there is no restriction on who I sell it too, they dont have to be a FTB.

I think we will probably negotiate up a bit - thanks Doozergirl. But HA says 2 weeks somewhat ambitious- I agree.

Otherwise better hit the loot! ANy BTLers on here got any unfurnished properties with voids ATM, east london area - pm me - Id much prefer my cash to go to a MSEr than elsewhere

chivers1977

hi Lynz

As you know, we are going through this and hoping to exchange today. We have been going 2 months since the offer was made. My buyer said exchange in 4 wks. As we were buying, I said that this would not be possible. Your buyer is saying 2 wks but the onus is on him and his sols to get their finger out not you. The only thing from your end is the HA and getting any info from them. I reckon that you could well do it within 2 wks, but what is he going to do if his sol can't do this? He will have paid search fees, valuation etc and he will be the one losing out. I would accept if it is high enough, well done!! HN success all round!!:T :T :T :T