Mis-Sold? Shared Ownership Property

[Deleted User]

I forgot to mention I expect 6K of compensation soon from 2 x accidents that I had. So this may help me I guess.

Catblue

OP, I presume that your daughter is young? Going to a "not great" primary school for a couple of years until you get sorted enough financially to move to a better area is not going to kill her.

You can swap her to a better school in a couple of years - it probably won't affect her at all. Kids move schools all the time so don't feel guilty about it.

In the meantime, you need to concentrate on getting rid of the debt. Is your daughter your only child? With her in school soon then it would really cut down on any childcare costs. If I were you, I would concentrate on trying to improve my career prospects right now. If you don't have a job, get a job or train for a job. If you have a job, get a better-paid job. Things will soon fall into place, but you have to plan for them.

[Deleted User]

Thanks last poster, yes she starts next September so next year so to speak. I work and earn about 25K, I expect a promotion shortly which will take me to 35K, but then you never know what 2mro will bring do you.

££sc££

Sounds like the £50 service charge, might include a management fee, that's what they mean about paying for reception etc. It may also include annual landlords gas safety check which some HAs do for shared owners.

If you haven't had it valued then I'm guessing you haven't tried to sell it, why not give it a go, or do you think there's a large amount of negative equity.

In terms of being 'misold' (your thread title), it's going to depend on what you can prove and what was put in writing? Lenders often clear shared owner's rent arrears to protect their interest in the property, however, this is of very little benefit to the shared owner (certainly not a selling point), as they get charged a flat fee for doing so from the lender, it's added to the mortgage balance and interest is payable on it. Do you have any other examples of how it was 'misold?'
Also, you would have had a solicitor whose responsibility it was to protect your interest.
In terms of it being over valued, people can sell properties for whatever value they like. It's up to the purchaser to ensure they are not paying too much (e.g. by looking at similar properties/local area prices and also there's the mortgage valuation). I do appreciate however, that you're likely to trust the value from a HA/charity more than if you were buying off Joe Bloggs of Station Road.

Trollfever

made several promises like the mortgage company would pay the rent as and when we needed a break

In some schemes rent arrears will be added to the mortgage debt.

Catblue

assj wrote: »

Thanks last poster, yes she starts next September so next year so to speak. I work and earn about 25K, I expect a promotion shortly which will take me to 35K, but then you never know what 2mro will bring do you.

Well, it sounds like you are will be doing quite well soon. Make sure that the majority of your promotion money goes towards clearing the debt and then focus on the mortgage. Take the statements into the bank and ask them to explain exactly what you currently owe.

Work out what you think the SO property would realistically sell at today. Sounds like you will have negative equity but there's nothing to be done about that apart from saving up to be able to clear it.

You'd need around a 12K deposit for the 120K house that you like, so I'd guess that you'd need to save around 25K in order to be able to clear the negative equity, sell the SO property and cover all fees, and put a deposit down on the next place.

Should be doable within 3 years with your salary, I'd reckon.

So at age 25 you'd be in your own (non-shared ownership) house in a good area and your child would be in a good school. Not bad, I reckon. You have to stick very tightly to the plan though.

[Deleted User]

Thanks all for the positive ideas!. I am really pleased I posted now, helps me feel focused now anyway :-)

Thanks all

mildred1978

Once your child goes to school will your partner work?

[Deleted User]

No :-( , UNI

mildred1978

Perhaps that will have to wait.