Difficult to sell larger % in shared ownership?

Sugarraybaz

Thomas79 wrote: »

Thanks both for your responses.

I'll speak to my lender about their terms on porting the mortgage over and how long they'd give me.

Think you're right, that if you avoid the pitfalls, shared ownership can be quite useful and can understand why they want to avoid people making huge profits / selling to private landlords, hence all the regulation to restrict it.

In your experience, were the housing association strict in when you had to move out after sell or was there some flexibility... Ie if you can't move out immediately but take a month or so to find a new place?

I'm not really sure if I understand what you mean. Once the sale went through we moved out as we completed on our new property the same day.

If you're referring to the fact that the valuation only lasts for 3 months, then our HA were fairly flexible in that they extended the life of the valuation by an extra month as the process dragged on a bit.

kingstreet

Ask a local agent what level of ownership best suits your property when marketed.

wolfplayer

Thomas79 wrote: »

If we staircased to say 75% and then sold in a year or so, is it more difficult to sell a larger share in a shared ownership than a smaller share?... Ie because the housing association wants to sell it to someone who can buy at least as much % share as we have?

That's how I think of the staircasing-up risk from the outside looking in.

I have to admit to not knowing a lot about SO, but would you have been able to buy the property if seller was seeking you to front up 75% price of valuation with a mortgage in your own name, with the HA having just 25% share?

Would have thought smaller pool of buyers in a position to proceed. And from those buyers who could go through with it, they may be more inclined to think not even worth SO, as more properties around where can buy without any 'sharing' ownership with any HA.

Laura2507

I'm in the process of purchasing a 25% share of a 3 bed new build. I did actually look at SO resales in the area but found those at 50% plus were still out of reach for me so I was limited. This made me realise I will only retain a 25% share of my property, or staircase straight out to 100% if the time comes I can afford it and I'm happy to stay. I won't be increasing to 50/75 etc as I think it does limit your buyer pool in the future.