Staircasing and Renting Out

Zury

Hi all,

I've got a question about Staircasing and Renting Out.

We bought 50 per cent of our flat a year ago (530k full price) in Hammersmith, London. Now we want to buy the rest 50 per cent. However, the independent surveyor's estimation (recommended by A2Dominion) of the flat's value is 600k which is significantly higher to the bank's valuation (Nationwide) of 550k.
As I have read some threads on the forum, I understand that I have to demand the comparable evidence from Nationwide. They sent me the Revaluation Report that is 90 per cent empty and contains only the price of the flat. Also, I need to argue with Surveyor about the evidence he gave. For example, we live in a block of flats. The Surveyor compared our flat with flats in Victorian houses and those geographically closer to the centre.

In the meantime, I have a PhD scholarship with teaching responsibilities at University of Kent and need to move to Canterbury by the end of the month.
My question is – would it be possible to rent the flat out while the process of staircasing (and arguing) lasts? Would the tenants agree to live in such a flat? Would A2Dominion allow for that to happen?

Maybe someone had similar issues?

Thank you!

G_M

This is a shared ownership?

I can't read the terms of the agreement you have with the other owner (A2Dominion)from here. What does it say about letting?

Zury

This is a shared ownership. Letting is not allowed...

[Deleted User]

You really do need to read your paperwork but generally renting a shared ownership property is not allowed.

You could talk to the HA, see what they say but obviously you only own half the property, they will have serious concerns.

And being a LL is quite complicated. I suspect you haven't looked into this either.

marksoton

Zury wrote: »

This is a shared ownership. Letting is not allowed...

You've answered your own question.

G_M

I don't understand this thread

Zury wrote: »

Hi all,
............

My question is – would it be possible to rent the flat out while the process of staircasing (and arguing) lasts? Would the tenants agree to live in such a flat? Would A2Dominion allow for that to happen?

This is a shared ownership. Letting is not allowed...

Tassotti

How is the surveyor independent if the other shareholders recommended them?

Boatdweller

They provide a list of approved independent surveyors. Not affiliated to the housing groups. My old firm used to do them, we got nothing from the housing group just the person wanting the valuation.

Zury

Thank you guys.

It turned out that the other flat in our block has been valuated at the same price as ours (600k) by the same surveyor and has been under offer as 30 per cent shared ownership. Still a third flat in the block has been valuated at 490k but for lease extension purposes. (!) All flats are the same in terms of square metres.

We were going to ask for another surveyor’s valuation. If our Housing Association has two reports with different prices of our flat from two different surveyors and the actual sale of a flat for 600k in the same block where we live, would it consider and approve the lower price for our flat? Would a different surveyor valuate the flat differently?

Maybe in such circumstances it is better to put pressure on the bank for a higher mortgage (initially they valuated the flat at 550k) or change the bank altogether, though it would cost 3k to leave Nationwide.

Thank you for your help!