Subletting Shared Ownership Untill I can buy Other Half

Pension_Plan

hazyjo wrote: »

Think about why she might not be able to work - pregnancy, for example... would you want her and a baby in yours? What if she could no longer manage stairs for whatever reason? You just never know what's round the corner...

Jx

that is a very good point that I have not yet considered and definatley will have to.

I would like to thank you hazyjo for giving me the most food for thought on the trust issue.

If she was pregnant we would do everything we could to support her within reason, and knowing her she would find a way to make it work but yes it something I should really put into the extreme cases list of cons

I would still like someone to post legal ramifications...

r12

You have a shared ownership property and can afford another property? I don't know how you were offered a shared ownership if you quite clearly can afford an entire property? Having said this my old neighbours never got caught. Most HA and mortgage cos don't care as long as they get their payments but you have to think if something goes wrong like a fire in another flat that spreads to yours and its shown that you were subletting, it won't be much of a pension if its worth nothing. Also from experience renting out to friends can only eventually end in tears! Will you be able to maintenance of two places? What if your circumstances changed? I think you should be thankful for your current situation. Why not sell the flat, get your new house (which has a spare room for your friend) and save up for another property to rent out when you can realistically afford to maintain it legally. Your young, in a great position financially, don't spoil it!

Pension_Plan

r12 wrote: »

You have a shared ownership property and can afford another property? I don't know how you were offered a shared ownership if you quite clearly can afford an entire property? Having said this my old neighbours never got caught. Most HA and mortgage cos don't care as long as they get their payments but you have to think if something goes wrong like a fire in another flat that spreads to yours and its shown that you were subletting, it won't be much of a pension if its worth nothing. Also from experience renting out to friends can only eventually end in tears! Will you be able to maintenance of two places? What if your circumstances changed? I think you should be thankful for your current situation. Why not sell the flat, get your new house (which has a spare room for your friend) and save up for another property to rent out when you can realistically afford to maintain it legally. Your young, in a great position financially, don't spoil it!

When I bought the shared ownership 2 years ago the situation was different. I had no job and I was buying the house with savings that my Dad left my mum and me when he died.

After everyones comments It has made me really re-consider, I dont want to look back and find myself agreeing with all the people that feel its unethical. At this point in time I dont want to let my friend down, so i think we will work out how long she will need the place and see If we can put it on the market with a conditional move in date. That way the house wont be emtpy, im not taking it off the market for someone else, and I will be able to afford the maintenence, repayments and rent on the flat if my friend honours her half.

The spare room in my new place is really far away from my friends current job, it was only viable if she lost the job. I really dont feel she would set fire to the house (accident or purpose ). I do however plan on fitting fire doors (the last tennant removed them) and ensuring fire safety while shes there.

And no i could not afford heavy maintenence on my current flat but the agreement with my friend is Ill carry on doing the same maintence I've had to do in the past 2 years and if anything bigger happens its bad luck for both of us.

Thank you for your information on a previous nieghbor that was useful, at this point though its very unerving not having all the facts, I feel we will be on tenterhooks while my friend is living there so any more facts would be greatly appreciated.

Again, thank you everyone for your comments, Im sorry if I've offended anyone or overstepped the mark somewhere.

brit1234

If you don't have a buy to let mortgage/consent to let you can be caught out black listed or even arrested for fraud offences. If you do get the right mortgages the Housing Association can be notified and take civil action against yourself or something else in your lengthy contract.

If you want the other property to live in sell your shared ownership property and do the honest thing.

This is why buy to let has a very shiftly/dodgy reputation.

If I was your neighbour I would inform the HA.

Pension_Plan

brit1234 wrote: »

If you don't have a buy to let mortgage/consent to let you can be caught out black listed or even arrested for fraud offences. If you do get the right mortgages the Housing Association can be notified and take civil action against yourself or something else in your lengthy contract.

If you want the other property to live in sell your shared ownership property and do the honest thing.

This is why buy to let has a very shiftly/dodgy reputation.

If I was your neighbour I would inform the HA.

I don't have a mortgage on the shared ownership.

Would it count as fraud in this case? am I really commiting fraud against the HA?

Can I ask why you would inform the HA, what do you feel is so wrong about this?

Thank you for your comments.

shortchanged_2

Pension_Plan wrote: »

I don't have a mortgage on the shared ownership.

Would it count as fraud in this case? am I really commiting fraud against the HA?

Can I ask why you would inform the HA, what do you feel is so wrong about this?

Thank you for your comments.

Because you've said yourself you would be in breach of the contract terms. That's all you need to know as to why it is wrong.

By all means challenge their terms if you feel they are unfair, and some contacts can be challenged if they are deemed unfair. However, I believe you will not have a case in this situation.

somethingcorporate

Spin the issue on it's head.

If your tenant refused to pay in line with the contract they signed or the HA decided they wanted to change some of the terms to your detriment, how would you feel? If you cannot be trusted to keep your side of the bargain, expect to be treated the same by everyone else you are in a contractual relationship with as it's exactly what you would deserve.

A calculated risk at the end of the day, but with the sums of money you are talking about would you really want to bet your house on the HA not taking action on it?