Shared Ownership Staircasing

alnkyls

Hi!!
I have just completed staircasing my apartment to 100% ownership via remortgage.
I'm thinking now of selling the property and I understand there will be a redemption and final payment fee to pay if I do so.
My query is with regards to wether or not I need to wait 6 months before marketing the property or does this not apply as I have part owned the property for the last 9yrs?
Would really appreciate your help! Thanks

Richard_Webster

This depends on what your lease says.

I have seen wording that effectively prevents anyone selling for 3 months after they have staircased to 100%. Yours might have similar wording for 6 months.

I think it doesn't actually stop you selling but imposes a risk on the buyer that he may have to pay an amount to the Housing Assn if during the 3(6) month period the property goes up in value. Buyers won't generally want to take that risk.

If there was no restriction at all on selling then it would have been easier to have straircased and sold at the same time and then you wouldn't have needed a mortgage to buy the extra portion.

alnkyls

There is no restriction with regards to the HA my main concern is with a potential buyer having a mortgage refused due to the other half being bought so recently.
Is this a probability or just a myth?

Monix

I'm wondering if anyone can help me to calculate correct shares.
I'm buying 35% shares in shared ownership property: 10% from F.M. housing association and 25% from seller.
Current market value of the flat: £350.000
Housing association is charging 10% their shares from 100 % of value of the property and they are sure that's right, where they are only owe 75%.

Their calculation is:
from the seller: 25% x £350.000= £87.500
from F.M.: 10% x £350.000= £35.000

According to my calculation the proportion of shares should be:
25% from the seller: 25% x £350.000=£87.500
£350.000-£87.500= £262.500 - which is 75% of F.M. housing association

10% from F.M: 10% x £262.500 = £26.250 ( not £35000)

Can you please advise your experience in your cases?
Many thanks

booksurr

Monix wrote: »

According to my calculation the proportion of shares should be:
25% from the seller: 25% x £350.000=£87.500
£350.000-£87.500= £262.500 - which is 75% of F.M. housing association

10% from F.M: 10% x £262.500 = £26.250 ( not £35000)

nonsense

at any one point in time the seller owns 25% and the HA owns 75% out of the total 100%.
If your maths applied you would not be buying 10%, you would be buying 10% x 262/350 = 7% leaving 3% of the property "missing"

the property is valued at 350k therefore each 1% is worth 3.5k.

after your purchase the situation will be:
seller 0%
you 35% £122,500
HA 65% £227,500
total 100% Total £350,000

Monix

booksurr wrote: »

nonsense

at any one point in time the seller owns 25% and the HA owns 75% out of the total 100%.
If your maths applied you would not be buying 10%, you would be buying 10% x 262/350 = 7% leaving 3% of the property "missing"

the property is valued at 350k therefore each 1% is worth 3.5k.

after your purchase the situation will be:
seller 0%
you 35% £122,500
HA 65% £227,500
total 100% Total £350,000

Thanks for that. The only thing I don't understand is why H.A. are trying to calculate their 10% from £350.000? Are they right to do that?

booksurr

Monix wrote: »

Thanks for that. The only thing I don't understand is why H.A. are trying to calculate their 10% from £350.000? Are they right to do that?

OMG, if you cannot understand what I have written ask someone else to explain it to you since you are now repeating the question i have already answered. The property is worth 350k, each 1% is worth 3.5k, they are selling you 10%

neilio

alnkyls wrote: »

There is no restriction with regards to the HA my main concern is with a potential buyer having a mortgage refused due to the other half being bought so recently.
Is this a probability or just a myth?

It is a probability. I sold my 100%-staircased shared ownership flat three months ago and the fact it was formerly shared ownership was a nightmare. Apparently my buyer had to change their mortgage lender for the reasons you mention. Also, staircasing does not automatically remove all the shared ownership restrictions and clauses from the title deed, so be warned, as you may end up with a buyer whose solicitor wants these removed from the title. It can be done, but takes time, and housing associations don't always know exactly what the correct process is. My advice would be to get yourself a very good solicitor who is well versed in these types of transactions.