low cost Home ownership ripp off!!!!!!

ALPHADEANO

Hi

Ill keep it simple as it is a complicated matter. Ill keep the details as brief as I can but theres more to it:mad:

applied for a 70/30 sheme with a housing association, on a new build flat, they sent me details and all the information said it was a 70/30 scheme.

My purchase price was around 71,000k.

I paid my non refundeble deposit £250 to the housing association.
they said theve recieved it.

I then went to get a mortgage they asked for evidence its a 70/30 scheme, I showed them every letter Id recieved and they agreed it was 70/30.

the developer also refered to it as a 70/30 sheme.

I was invited to the housing association to pick a property and learn a bit about the shceme, this was after sending the deposit, I couldnt go on that date, so I picked the property over the phone and was told the meeting wasnt anything important and if there was anything important theyd send me the details.

Went to sighn completion papers at solicitors and the percentage was 50%?????

I had less than two weeks till exchange of contracts, house prices had in the time of paying my deposit increased a lot and kept rising, and I felt I had to go ahead with the purchase as I had a lot of non refundable deposits and fees to pay. Plus I was now priced out of buying practacly any property on the open market!

Wrote to the housing association after the sale and was told the percentage is the purchase price relative to the open market value of the property.!!

I went to the ombudsman who ruled against me saying it was regretable the housing association sent me the wrong infrormation!

Any thoughts on what I can do?

I approched no fee solicitors in year 4 but they said they wouldnt take it on as theres a 5year limit to housing desputes and they wouldnt have enough time. Its now just over 5 years.

Now house prices have come down and Ive lost a lot of money, and I belive the flat at £136,050 omv at the time was overpriced!!!

Not a day has gone by that I dont get depressed over this, I feel I have been ripped off, I dont think the housing association paid full market value for there share of the equity.:(

Thanks for reading.

Expand..................:money:

betmunch

I cant really follow your post, but it seems that most of all you are upset that house prices came down.

Is that right?

ALPHADEANO

No that the scheme was sold to me that I d recieve 70% equity of the property.

Then I paid my non refundable deposit.

Then they changed the scheme without telling me leaving myself with around 50% equity of the property.

imagine you put a deposit on a car then they put the price up, so you owned less of the car and couldnt get your deposit back!

Im upset about the equity and loosing money , and the flat was overpriced!

hope this makes sense

thanks for your reply:)

Running_laps

can I ask why if this was the issue you:

a. went through with the sale
b. Have then left it 5 years?

Then someone may be better placed to help.

Thanks.

ALPHADEANO

a. I had the option of not going through wit the sale yes, but would have lost my £250 deposit, my deposits on furnature, carpets, my solicitors fees and also my mortgage fees.
Plus I was now priced out of the housing market , I couldnt see any properties I could now afford.
Usually when you pay a deposit the price advertised remains the same or am I wrong.

b. I did write toi the housing association, then went to the ombudsman, who said its regretable and I could have not gone ahead with the purchase.
The whole proccess gave me servber depression, and after going to the ombudsman was left feeling helpless.

thanks for your reply though!:)

Annisele

I'm still struggling to see how you've lost out on the 70/30 or 50/50 thing.

You thought you were buying 70% of something that later lost value. You actually bought 50% of something that lost value. So, surely you've lost less money than you would have done if you'd owned more of the place?

ALPHADEANO

Well no the purchase price was £71050, which should have been 70%.
So I ended up paying £71050 for 50%

So If the value of the property is now £100,000
Id get back approx £50,000 instead of £70,000

Even though the housing association paid considerably less than I did, I also had to pay them fees for adminastrating the scheme.

Thanks for your reply,

Running_laps

To be honest it seems like you took all the steps you could and I'm not sure there is anything more you can do now. I would have to defer the knowledge of the solicitor and ombudsman and say that you might be better focusing your time and energy elsewhere.

ALPHADEANO

Thanks,

Im just wondering if theve broken any laws, if it was an item, surely it would be the sale of goods act.

How can you take a deposit off someone then change the scheme without letting them know.

The housing association are not supposed to be able to make a profit and after writing to them they said they do not make a profit off this scheme?

Thanks again

arbrighton

As others have pointed put, you became aware before exchange so could have backed out then, but you chose to exchange and complete which would apply acceptance of the deal offered.

Had you backed out, i doubt you'd have lost as much as the 20k you now have in negative equity. Many people now do back out of sales after some significant initial outlay- I've been the vendor on the receiving end

HA's share will also have lost value, everything has pretty much, so how can they have profited??

ALPHADEANO

As they paid approx £30,000 for 50% share of £136,500 omv property and I paid approx £71,050 for my 50% share.

For the properties on the new estate to be built , they had to have some affordable housing.

I think originally it was going to be a 70/30 scheme, but in the time it took from the start of the scheme to completion the house prices rockerted, so I had to pay open market value but the housing association didnt, even though Id paid my non refundable deposit. Does this happen with goods ?






So they have gained financially and Ive lost. I thought housing associations were supposed to help people and not profit off them.

There were also other properties in the street bought off plan, so other people profited, all of which could not have happened without myself and others buying on the scheme.