Shared Ownership sale percentage fee

Darren1977

Hi, newbie to the site here!

Just an enquiry. We own 25% of a shared ownership property and we are in the process of selling it. The Housing Association charge a 1% (estate agency fee) upon the sale of the property.

For example, if a property is worth £200,000 and we own 25% of it, we own £50,000. However, when you come to sell, the association charge a 1% fee on the full value. So, when we sell, we pay the Housing Association £2000 even though we only own 25% of the property.

How is this fair? surely we should only be charged 1% of what we're selling, so 1% of £50,000 would be £500. But no, the Housing Association want £2000.

Can't be right surely?

Many thanks

DizzyGherkin

Depends on the housing association. Genesis recently changed their fees from a percentage based on share to now being on full market value.

If they fail to sell though you shouldn't have to pay anything to them. I got out of our resale agreement and have sold via estate agent. We got a fee based on share owned which made it cheaper for us.

Wickedkitten

Darren1977 wrote: »

Hi, newbie to the site here!

Just an enquiry. We own 25% of a shared ownership property and we are in the process of selling it. The Housing Association charge a 1% (estate agency fee) upon the sale of the property.

For example, if a property is worth £200,000 and we own 25% of it, we own £50,000. However, when you come to sell, the association charge a 1% fee on the full value. So, when we sell, we pay the Housing Association £2000 even though we only own 25% of the property.

How is this fair? surely we should only be charged 1% of what we're selling, so 1% of £50,000 would be £500. But no, the Housing Association want £2000.

Can't be right surely?

Many thanks

Have you checked the paperwork that you got when you bought it to see if it said they charge 1% on the total price you sell?

Darren1977

Thanks for that replies!

Yes, its all in the contract and everything like that, but I can't for the life of me see how that is legal to do it. Surely you should only pay the percentage of what you own.

Its crazy. I think its because of the difference across organisations that make it worse!

Thanks again

brit1234

That's another major problem with shared ownership, leasing a fraction of a property but responsible for the full costs. Its a scam people should avoid.

bunnybunnyrabbit

They can only charge 1% of the sale price. You are only selling 25% of the property therefore you should only have to pay 1% of your 25%.

There should also be something in your lease that says they cannot charge this fee if they fail to nominate a buyer within the nomination period (usually 6-8 weeks).

Darren1977

If only that were the case! It seems that they can charge 1% on the full market value! its shocking even though we only own 25% of it.

With regards to the timelapse on it, I'm pretty sure they'd charge the 1% whether it was 2 weeks or 22 weeks, because they'd still say they were selling it for us