Shared Ownership Prison

NOVAMET21

Scooby2016 - I don't think HA will let you sub-let your flat in any circumstances. However, if you do sub-let behind their back then that is your decisions. I'm not entirely sure what happens if HA knew that you were sub-letting.


I don't understand why did you opt in for interest only mortgage in the first place. Is it because you could only afford the interest only mortgage?


I also don't understand why can't you sell your flat. Is it because you have negative equity?

Pixie5740

How much is the property being marketed for and how much is the outstanding mortgage?

It's perfectly legal and very normal for shared ownership leases to include a clause which prevents the sub-letting of the property regardless of whether you're making a profit or not.

As for getting a joint mortgage with your partner that could have SDLT implications for you.

AnotherJoe

Scooby2016 wrote: »

Thanks for taking time to reply.

The flat can only be sold for the pre-valued amount so I really am stuck.

The comparison to the HA asking for more shares to my problem is not correct. I am looking to seek permission to sub-let not to gain financially nor to take any income from them.

Looks as though I am as locked in as I thought.

1. You are looking to gain financially. You'll be letting the HA flat out and using the money from that to fund your building works.

2. Why are you stuck? Surely you have some savings, use those to fund the shortfall between what you paid and what you sell it for. If you dont have savings then each month this is a financial drain depleting your finances even more so you need to do whatever it takes to get out. And if you dont have savings, then that puts you in a place where you cannot afford your current expenditure and yet are looking to borrow more in order to fund work on partners house.

Thrugelmir

Scooby2016 wrote: »

This post really was a plea to see if anyone knew more than us about it, loopholes etc.
Doesn't look hopeful.

You need to be working on ways of extraditing yourselves from the commitment. Build up some some savings to fund an empty period while the property can be marketed and sold. There are no loopholes. Other than picking up a shovel oneself and tackling the problem head on. Overpay the mortgage for a while if necessary to avoid a shortfall on sale and cover the selling costs. .

Scooby2016_2

AnotherJoe wrote: »

1. You are looking to gain financially. You'll be letting the HA flat out and using the money from that to fund your building works.

2. Why are you stuck? Surely you have some savings, use those to fund the shortfall between what you paid and what you sell it for. If you dont have savings then each month this is a financial drain depleting your finances even more so you need to do whatever it takes to get out. And if you dont have savings, then that puts you in a place where you cannot afford your current expenditure and yet are looking to borrow more in order to fund work on partners house.

I AM NOT LOOKING TO FUND BUILDING WORKS. My husbands house is 51% equity.

Read the post before adding comments like this please.

We would like to be joint on the house as we are married and it will increase the affordability for extra money on the house.

We cannot sell as the flat is unable to raise the amount the HA stipulate we must get for it.
We do not have the means to leave the flat on the market empty for 6 months. We pay childcare for 2 young children.

Scooby2016_2

Thrugelmir wrote: »

You need to be working on ways of extraditing yourselves from the commitment. Build up some some savings to fund an empty period while the property can be marketed and sold. There are no loopholes. Other than picking up a shovel oneself and tackling the problem head on. Overpay the mortgage for a while if necessary to avoid a shortfall on sale and cover the selling costs. .

Huge thank you for a non insulting answer.
I am over paying the interest only mortgage but its a slow process with little spare cash.

I may delete this post as I am in a despairing situation post the housing plummet of 2007/2008 and I don't need negative comments.

NOVAMET21

Scooby2016 wrote: »

I AM NOT LOOKING TO FUND BUILDING WORKS. My husbands house is 51% equity.


We cannot sell as the flat is unable to raise the amount the HA stipulate we must get for it.
We do not have the means to leave the flat on the market empty for 6 months. We pay childcare for 2 young children.

Scooby2016 - Can you give us the exact details why HA won't let you sell your flat? Still don't understand why you can't sell the flat. Why is HA worried about the price it will sell? Surely they must have got a lump sum from your lender when you purchased the flat and who ever buys the flat they will have to pay rent to HA.

Scooby2016_2

agurung wrote: »

Scooby2016 - Can you give us the exact details why HA won't let you sell your flat? Still don't understand why you can't sell the flat. Why is HA worried about the price it will sell? Surely they must have got a lump sum from your lender when you purchased the flat and who ever buys the flat they will have to pay rent to HA.

The HA stipulate that the amount the property can be marketed for is predetermined by a professional valuation report. They are not against the sale of the flat its just their 25% interest must be protected.

NOVAMET21

So what was the full price of your flat when you originally bought it and what is the price now?

CookieM

When was the valuation done?

Does the HA allow back-to-back staircasing, allowing you sell 100% of the property on instead?