The journey out of shared ownership

Samx41

A thread to look back on when we've finally managed it

My OH brought a 60% share of a shared ownership new build back in 2008 :0

Since then I have moved in and we have got engaged and have now decided to move due to a number of reasons mainly:
The place is too small for the both of us
We need a garden
We want to have kids before I get too old
We have anti social neighbours that the housing association are I inadequately dealing with.

After a couple of pay rises, overtime and living like students we have managed to save 16.5k that is earning interest in ISAs. Aiming to buy a 150k ish property.

Surprise surprise we are in negative equality. Flat's value was 110k when OH brought his share most recent valuation was 95k but I'm pretty sure it's less now. As a two bed flat in the block opposite us (we are 1 bed) has been on the market for fours months at the price of 110k

A friend of ours has offered to loan us some money ( which we are deciding on) we have till the end of jan to let him know. At this SLOW pace in the process we might not take him up on the offer as our saving power is still strong and narrowing off a friend is not ideal.

OH contacted the HA a month ago requesting the they send us details on selling and renting the property. Awaiting a call back today... So most likely will have to phone back tomorrow.

Quite a crappy situation- frustrating and depressing!

Kynthia

You are at the beginning of a slow process. Once you get the details from the HA you will probably have to organise an independant valuation and an energy performance certificate. You can get anyone to do the EPC, just google and find someone local who's cheap. However the HA may insist you use a particular surveyor. You will also need a solicitor, have you got anyone or would you use the one your OH bought with? Once all that is done you might get someone round from the HA to take photos, so make sure you property declutter (you'd be amazed how much more cluttered the rooms look in photos so try taking some yourself first to see where you can make improvements).

Obviously every shared ownership scheme is different but it tooks weeks before we were actually on the market and even then very few people viewed the flat.

Samx41

Kynthia wrote: »

You are at the beginning of a slow process. Once you get the details from the HA you will probably have to organise an independant valuation and an energy performance certificate. You can get anyone to do the EPC, just google and find someone local who's cheap. However the HA may insist you use a particular surveyor. You will also need a solicitor, have you got anyone or would you use the one your OH bought with? Once all that is done you might get someone round from the HA to take photos, so make sure you property declutter (you'd be amazed how much more cluttered the rooms look in photos so try taking some yourself first to see where you can make improvements).

Obviously every shared ownership scheme is different but it tooks weeks before we were actually on the market and even then very few people viewed the flat.

Thanks for the input we have no doubt that its going to be a long drawn out process. I have a feeling that the three months the HA have to find someone will be a waste of time and it will then be put on the open market. Im guessing another valuation will be needed. I'm sure a lot of stress and tears will come on the bright side it means our deposit will get bigger and bigger.

OH's sister is a solicitor. She helped him when he brought it. We will be decluttering this month

Two messages left with HA and still no call back at 16:50hrs. I have no doubt this will be a very long thread :cool:

Samx41

Kynthia wrote: »

Obviously every shared ownership scheme is different but it tooks weeks before we were actually on the market and even then very few people viewed the flat.

Did you manage to sell yours? How long did it take you? Did you mange to sell it through HA or the open market?

Tina_Arena101

Hey,

I'm in a pretty similar situation to you and while I don't know enough about your situation (in comparison to mine)... I'm thinking of doing the following:

1. Saving up and making overpayments on the mortgage.
2. Getting a New mortgage on the whole property (buying out HA)
3. Renting it out to people - using this to pay the rest of the mortgage.
4. Buying a new place elsewhere.

I'm not suggesting this will necessarily work for you but thought it was something you may wish to at least think about.

Christina

rob404uk

Hi,

I have sold my shared ownership property, even though it was a few years ago perhaps my experience could help.

Like you I had neg equity issues, so overpaid the mortgage as much as I could. By my sale I was just on the right side (bought 30% share for 52.5k, sold 36k, big loss!)

The housing associations are useless, will do littlest effort for minimum cost, and only seem to care about their newbuild schemes. I had to get the valuations, a hips pack (not needed anymore) and take my own photos. All they did was put my photos on their website and they got about 1200 when I sold.

I had no problem with viewings. The flat was in great condition and photographed well. Annoyingly the first person who made an offer had mortgage problems and that wasted a good few months, but i quickly got a new offer and things went through fine.

The solicitor found things extremely slow though. The housing association made no effort to assist and it got frustrating on many an occassion but we got there in the end. (April offer, July complete)

Just remember to really sell you place when you get viewings. Try to only remember the good things about the housing assocciation and say them to prospective buyers, even if you are really peeved with them at the time.

Good luck in your mission to move

Samx41

Tina_Arena101 wrote: »

Hey,

I'm in a pretty similar situation to you and while I don't know enough about your situation (in comparison to mine)... I'm thinking of doing the following:

1. Saving up and making overpayments on the mortgage.
2. Getting a New mortgage on the whole property (buying out HA)
3. Renting it out to people - using this to pay the rest of the mortgage.
4. Buying a new place elsewhere.

I'm not suggesting this will necessarily work for you but thought it was something you may wish to at least think about.

Christina

Great points, we have thought about them all and will be seeing a financial advisor (recommended by OH's other sister) just need to get all the other details from HA. We might indeed have to buy the whole lot to put on the open market. I guessing that we will be paying the current valuation for the remaining 40%... Just wAiting for HA to pull their finger out. Selling and buying is stressful enough. Hindsight is a great thing.

Renting could be a good option too. We just need to sit down with someone face to face and make a plan and salvage something out of this mess.

rob404uk

Tina, if you bought 100% would the HA as the freeholder agree to you letting?

Tina_Arena101

Hi,

I'm with Thames Valley Housing and they told me that if I owned the whole property that I could do with it then as I wished as they would have no say i.e. sell on the open-market, rent out etc.

I have a neighbour who had it agreed with HA that he could sublet his property even though in their terms and conditions this is not supposed to be possible. (I have pets, this isn't supposed to be OK either... but I have it in writing :A). They are generally lenient as they are so hap-hazard in their organisation and management of the properties they barely know what they have agreed and with whom.

Also, they will do a valuation as part of the process for the sale unless your current valuation is more then 3 or 6 months old (depending on their Ts and C's). This incurs a charge so in all likelihood they will do it again as they have a tendency to want to spend...

Hope this is of some help?:)

getmore4less

If you have raised the antisocial with the HA you will have most likley have to declare this to the prospective buyers.

leveller2911

rob404uk wrote: »

Tina, if you bought 100% would the HA as the freeholder agree to you letting?

Thats the crux as many HA will not allow you to rent out your property and upsize, not that I agree with renting out your SO and buying another house as the whole idea is that SO is there for people who can't afford to buy 100% of a house.Many people are in the same boat as the OP.

I would add we are tenants of Santuary Housing association and like most others the service they provide is truely shocking.Incompetance on a grand scale and they concentrate on their new build programme whilst at the same time cancelling maintenance programmes on their existing stock.