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L&Q Shared Ownership Problem
blackmath
Posts: 95 Forumite
I was hoping someone might have advice on what I am experiencing.
I found a new build shared ownership property which was affordable to me (income actually right at the allowable maximum for eligibility). It was advertised as requiring a 10% deposit and a 25% share was available. With the rent and service charge it appeared to be perfect.
However, the mortgage valuation has come in lower than their price and now they want me to make up the difference. which ends up being a hefty amount and not affordable.
This seems very unusual for a Housing Association who are supposed to be giving Affordable Housing at a fair price, not overvaluing properties (the price is clearly above market prices of similar new builds nearby and I'm not surprised at the mortgage valuation). It would also mean that with the new build status gone you are likely to immediately, or be at high risk of, fall into negative equity.
The only people who can afford these houses will be people with large deposits and are willing to overpay for the 25% share (because they can't afford to buy 100%), something schemes like this were supposed to resolve. Is this really what the council intended
Any advice? Thanks.
I found a new build shared ownership property which was affordable to me (income actually right at the allowable maximum for eligibility). It was advertised as requiring a 10% deposit and a 25% share was available. With the rent and service charge it appeared to be perfect.
However, the mortgage valuation has come in lower than their price and now they want me to make up the difference. which ends up being a hefty amount and not affordable.
This seems very unusual for a Housing Association who are supposed to be giving Affordable Housing at a fair price, not overvaluing properties (the price is clearly above market prices of similar new builds nearby and I'm not surprised at the mortgage valuation). It would also mean that with the new build status gone you are likely to immediately, or be at high risk of, fall into negative equity.
The only people who can afford these houses will be people with large deposits and are willing to overpay for the 25% share (because they can't afford to buy 100%), something schemes like this were supposed to resolve. Is this really what the council intended
Any advice? Thanks.
0
Comments
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I wouldn't procrastinate on it. Just walk away.0
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That would be the easy decision to make, but there isn't a good alternative.
I was wondering if anyone else has managed to get a HA to lower their price?
I may just have to make them an ultimatum offer.0 -
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