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Shared Ownership and Voluntary Repossession
Bole987
Posts: 2 Newbie
Hello
I’m new to these forums and have found a lot of useful information regarding issues surrounding Shared Ownership. I’m still confused regarding the consequences of repossession and was hoping someone could help me understand it given my current situation.
I made the mistake of buying a 40% share in a flat in 2007 (from a private housing association) and since then the rent has escalated dramatically and the service charge has doubled from what I was originally quoted. The current value of the flat is also considerably lower. After being made redundant in 2009 I spent over a year searching, without luck, for a similar job which would cover these costs. I ended up having to move to a different city to find a suitable job in my profession, and rented out the flat (allowed in the contract).
The rent I have been receiving in no way covers the mortgage and rental payments, and of course I have my own rent to pay in my current place. I desperately wanted to break free from this trap, and so made a decision over a year ago to attempt to save enough to be able to sell my 40% share and pay the shortfall. Since then I have been freelancing evenings and weekends on top of a full-time job to try and raise enough money (I estimate I need approx. £20k on my 40% share). I’m a long way from that target, and basically every spare penny goes towards either these savings or current maintainance of my shared ownership flat.
This is a very difficult routine to maintain, and I just don’t know if I can do it much longer. In all honesty I think it might be a pointless excerise as the flat will be extremely difficult to shift anyway because of this scheme. I just can’t see anyone willing to take on the very high rent and service charges.
I end up thinking about it day and night – I need to get some sort of resolution soon. My question is this – what are the consequences if I stop the payments when the current tenants move out? Is having the flat repossessed really worse than trying to pay thousands on maintaining the flat and renting it out at a sizeable loss for potentially many years to come?
I’ve tried speaking to the CAB about this a few times, but they don’t seem to know much about SO schemes. I would really appreciate any insight into this!
Many thanks in advance.
I’m new to these forums and have found a lot of useful information regarding issues surrounding Shared Ownership. I’m still confused regarding the consequences of repossession and was hoping someone could help me understand it given my current situation.
I made the mistake of buying a 40% share in a flat in 2007 (from a private housing association) and since then the rent has escalated dramatically and the service charge has doubled from what I was originally quoted. The current value of the flat is also considerably lower. After being made redundant in 2009 I spent over a year searching, without luck, for a similar job which would cover these costs. I ended up having to move to a different city to find a suitable job in my profession, and rented out the flat (allowed in the contract).
The rent I have been receiving in no way covers the mortgage and rental payments, and of course I have my own rent to pay in my current place. I desperately wanted to break free from this trap, and so made a decision over a year ago to attempt to save enough to be able to sell my 40% share and pay the shortfall. Since then I have been freelancing evenings and weekends on top of a full-time job to try and raise enough money (I estimate I need approx. £20k on my 40% share). I’m a long way from that target, and basically every spare penny goes towards either these savings or current maintainance of my shared ownership flat.
This is a very difficult routine to maintain, and I just don’t know if I can do it much longer. In all honesty I think it might be a pointless excerise as the flat will be extremely difficult to shift anyway because of this scheme. I just can’t see anyone willing to take on the very high rent and service charges.
I end up thinking about it day and night – I need to get some sort of resolution soon. My question is this – what are the consequences if I stop the payments when the current tenants move out? Is having the flat repossessed really worse than trying to pay thousands on maintaining the flat and renting it out at a sizeable loss for potentially many years to come?
I’ve tried speaking to the CAB about this a few times, but they don’t seem to know much about SO schemes. I would really appreciate any insight into this!
Many thanks in advance.
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