Shared Equity Notice RIP OFF

R1CK3R5

I purchased my home through a shared equity scheme 3 years ago and I am now in the position where i would like to sell. I notified the developers Equity Team to initiate the process but the document received states that "The value stated on the form will be used to settle the account irrespective of eventual sale price."

The 3 valuations received were quite varied, from £177k to £200k which at 20% equity is £35k and £40k. We actually marketed at £190k expecting offers around £185k which we have achieved.

If I were greedy and went with the valuation of £200k (20%=£40k), i would cost me an extra £3k in equity! Surely they should take the sale price of £185k (20%=£37k) and not the valuation...

There must be thousands of people who are unknowingly in the same position - PLEASE HELP :mad:

nidO

R1CK3R5 wrote: »

Surely they should take the sale price of £185k (20%=£37k) and not the valuation...

Why would they do that? If they did, what would be stopping you selling the house to your dad for a fiver and giving them £1 to cover the equity you owe them?

Agreeing on an average of 3 valuations is relatively normal, if this average (you've only given high and low figures so no-one other than you knows what the average is) doesn't quite align with your actual sale price, if your sale price is above this you're quids in, if it isn't you aren't, but might be able to negotiate with your developers if the sale price and average valuation are reasonably close.

R1CK3R5

In the form, they have asked for a copy of the valuation and i believe this is the figure they propose to use rather than the actual sale figure. The three valuations were £177k, £190k and £200k (Av.£189k). We went with the £190k hoping to achieve £185k which we have but if they base their figures on the £190k valuation, that is another £1k out of my pocket.

A grand may seem a relatively low figure but i can see this being much higher for larger houses, and its MY grand...

Any suggestions would be appreciated...

libf

Did you not read the terms of what you were signing up for before you bought? Presumably the terms haven't changed?