Help needed on shared equity flat

Muhasib

Not being in the LIFT scheme myself so i'll ask the question -

If as you say the flat was £120,000 purchase price and you need to pay £12,000 for 10%, is the 10% actually that figure or is it the market value after a valuation has been carried out (as you say it is worth nowhere near that)? in which case it would be less that £12,000.

lydo33

muhasib wrote: »

Not being in the LIFT scheme myself so i'll ask the question -

If as you say the flat was £120,000 purchase price and you need to pay £12,000 for 10%, is the 10% actually that figure or is it the market value after a valuation has been carried out (as you say it is worth nowhere near that)? in which case it would be less that £12,000.

This is the 10% of the valuation from 2 years ago, but if the valuation drops or rises in price the sum is still 10%.

brit1234

Maseillo wrote: »

Thanks for that. For people like myself and the OP who already have a shared equity property, pointing this out is really helpful! Whether it's a scam or not - it's done now!

Sorry I did not aim it as an attack on you but warning MSE members considering the scheme. I'm sure you don't want them to be burnt the same way you were?

lydo33

Maseillo wrote: »

We're in a similar situation - we bought 3 years ago on the ownhome scheme which sounds similar to what you have - didn't need a deposit and we own 60% with an equity loan of 40%, and it's in the agreement that we don't rent it out. We have it on the market at the moment as we are relocating 4 hours away for work. There's not much interest in the house though and we can't afford to drop the price any more than we already have as we haven't got enough equity - we can only just pay the fees as it is! I spoke to Ownhome and they have said that they can give permission to rent the property out in exceptional circumstances. I've put a request in to them detailing why we have to move. As far as I see it, the "no renting out" clause is so that people don't buy on the scheme specifically to rent out, and so renting out because you can't sell is different. I'm waiting to hear back from them about it. I'm a bit worried because we don't HAVE to move - but it is a great opportunity for my family which I didn't feel we could turn down. So I don't know if we will qualify for their "exceptional circumstances".

Have you asked them? You never know, they might give you permission.

Thanks for the reply. I've spoken to my fiance and we're going to sit it out for another year at least anyway.

I had a look on a few estate agents websites and found that there are 2 flats in the same block as me already on the market and are on for a fixed price of £145,000.

I found out that they are on for that price as that's what they were bought for 4 years ago. So i'm not actually in as bad as a position as 1st thought. I asked the estate agents what they were both valued at and it was £140,000. Can't see anyone paying anywhere near that for a flat around here though.

So if worst comes to worst i will just put it on the market next year for the £120,000 that i paid for it and hopefully someone will take it off my hands and i'll break even. Its still a big ask though.