Shared ownership - selling questions

redbeard2000

A few years ago I bought a 50% share of a housing association flat. I've been paying rent on the other 50% and the flat's service charge.

I've decided to sell because I can afford now to buy 100% of another property. My main question is, is the estate agent entitled to charge their fee on the full asking price? I don't understand why, because I'm only selling my half. It's the difference between paying 1.75% on £130k (the full value of the flat) or 1.75% on £65k (my half)!

So far I'm not enthused about the whole selling procedure. According to the lease, I also need to pay into the housing association's maintenance fund when I sell - this is calculated at 0.5% of the FULL value of the flat, multiplied against EACH year I've lived there (currently 3%). On top of this, the housing association charges £200 for the classic 'admin charge'.

I need to get out though because my 'subsidised' rent on half of the flat is nearly as high as rent on an fully let one. Also, the service charge just went up 25% even though the management company has not filed accounts for the past two years.

Mallotum_X

You can negotiate with the agent. But I would suspect that once again shared ownership turns out to be a bit of a nightmare.

Good luck with your new place.

kingstreet

Have you spoken to the HA yet? They normally insist on having the opportunity to sell to their "waiting list" before you can market the property via an agent.

redbeard2000

Thanks for both your comments. Unfortunately the HA did not have anyone on their waiting list, so we've had to put it on the open market.

The EA has come down a bit on his fees too after I pointed out just how big a chunk it was going to take out of my proceeds.

I'll pass judgement on the whole shared ownership arrangement after we sell!