Shared Owndership

Mfw2016

Hi

I'm wondering if someone can help?

I am buying a property under the "shared ownership" scheme, but its not exactly the same.
I am buying for 85% of the market share, I have been told I must be a first time buyer, intending to live in the property not renting it and when I come to sell I am only allowed to sell using the same terms. I don't have to pay rent nor can I purchase the remaining 15% later.

Does anyone know what this is called?
I'm trying to find more information on the scheme as I have been told I have to ask my local council for permission to buy it? My solicitor is trying to get the information off my sellers solicitor but isn't having much luck at the moment.

Thanks

saajan_12

I have no idea what its called, but to me it doesn't sound like a share at all..

Who owns this 'other 15%' - its never bought/sold, no rent payable..

Sounds like a mandatory discount to me - like artificially dampening the cost of housing.

Hoploz

Could it be that the council have to agree to your eligibility? When I bought years ago under shared ownership I was a teacher and had to register with the council first, then they put me forward to the HA as it was in my instance only for key workers.

I'd be very careful entering into this though. If you are stuck in this odd type of sharing it could be ok if you are going to live there for the rest of your life, but could be difficult to get out of. You may not be able to sell on the open market, but give first refusal to the housing assoc./builder or whoever owns the other 15%. Even if this isn't the case your market is narrowed to FTBs which means the value is in any case reduced.

Is this really your only option? Explore whether any more flexible arrangements exist which could be better.

G_M

Download the Title from the Land Registry and see who owns the other 15%.

It's a starting point.

Cakeguts

Do you live in an area where there are a lot of second homes that are holiday homes? I think that this could be a scheme to help people in areas where people have holiday homes to keep the prices low and property available for local people. I would expect the local council to want you to have a connection to the area before you are allowed to buy.

kingstreet

Affordable Housing, usually subject to S106 Agreement limiting lender options.

Damn you Bogalot.

Mfw2016

Thank you all for your help. I had managed to find it by ringing the estate agent and quizzing them.

It is called "discount for sale" and you are correct it is affordable housing rather than shared ownership. I have spoken with the council and they are happy to provide me with the info I need and asked for a copy of the Section 106 agreement so it looks exactly like what a few of you have described. Once purchased I will own 100% of the house.

I am intending to live in this house for a very long time, so I am not worried about selling.

Hoploz

That sounds much more satisfactory