homebuy scheme housing association

max1_2

My son was accepted for this scheme and all the literature etc led him to believe it was a70/30 split.When he went to exchange contracts his solicitor informed him that he was only buying 52% of the property.Has anyone else had this happen to them?
Thanks for any comments.

lynzpower

Surely his lender would have noticed this- wouldnt they? was he getting a shared ownership mortgage?

this seems very strange

Welcome by the way :wave:

max1_2

his lender thinks he is having 70%.

lynzpower

well
I reckon the issue is then that his lender are unlikely to lend on this in any case. Ie its not quite as good value for money is it!

He hasnt exchanged contracts has he?

BobProperty

max1 wrote:

his lender thinks he is having 70%.

But his solicitor knows he's only getting 52%. Who is acting for the mortgage company here? It's likely to be his solicitor too, so the moment the mortgage company realise it's 52% they pull out of the mortgage. If he's already exchanged he's in deep doo-doo and open to a fraud charge at worse. How come this situation has arisen? I would think this would have been spotted pre-exchange so all that will happen is that the mortgage company will pull out leaving him to find an alternative lender.

max1_2

This has happened because approx 9 months ago he was offered a Barratt flat on a private housing development.The price quoted was around £101,000 he was to arange a mortgage for 70% around 70,000 he had a deposit of 10,000 so he gained a mortgage for 60,000.He saved every penny he could no nights out, no holidays.
All the correspondence indicated it was a 70/30 split,a site plan was sent including plans of the flat,name of the flat i.e falkirk with a price of 101,000 written below the flat name.
He was contacted by Barratt to choose tiles and woktops etc.Money has been spent on furniture and other household items not to mention the excitement of having his own home.
A letter then arrived saying contracts were to be exchanged on Dec 01 otherwise the offer would be withdrawn and the flat offered to somebody else.It then transpired that although his purchase price was the same his % of the property had dropped to 52%. His solicitor said after contacting the solicitor acting for the housing association, that all the buyers of the flats thought they were purchasing 70%.I know the purchase price of the flats has increased on the flats being released now,however all this was based on an offer 9 months ago.I do not want to say anymore(for fear of boring you)however if nothing else i feel they have all been misled.
Thanks for any comment.
Max

lynzpower

So basically the top & bottom is that the property has -0 they reckon risen in value

Who is pricing this the housing association or barrats?

I recommend he speak to the housing corporation PRONTO and sees what recourse there is that way.

Sounds shocking.

Who on earth is this housing associaiton?