Shared Ownership - Maximum Permissible Percentage

LonelyTed

Hi there,

I have a "Maximum Permissible Percentage = 80%" clause in my Shared Ownership Lease. This means that I can only ever buy up to 80% of my flat.

My current mortgage provider refuses to give me a remortgage, as I cannot staircase to 100%.

Does anyone know how I go about amending my lease to remove this "Maximum Permissible Percentage" clause?

Thanks

Rosieandjim

You cannot remove this clause as the houses were built for people who cannot afford the full market value of a property. Hence why you can only ever sell for the 80%

neilio

I must admit, I had never heard of Maximum Permissable Percentage clauses in shared ownership leases until I actively started using this forum last year. I was shared ownership and was able to staircase to 100%. I thought the whole point of shared ownership was to encourage staircasing, ultimately to 100%. Have Maximum Permissable Percentage clauses always existed or is this a more recent thing?

lewishardwick

Why would a property developer ever allow those who cannot afford a full mortgage to ever wriggle out of paying them extortionate rents?!

I looked at shared ownership for about 5 minutes then realised how screwed people are from every angle.

BLOW_FLY

lewishardwick wrote: »

Why would a property developer ever allow those who cannot afford a full mortgage to ever wriggle out of paying them extortionate rents?!

I looked at shared ownership for about 5 minutes then realised how screwed people are from every angle.

^^^ what he said +1

Shared ownership is worst of both worlds of buying and renting.

I know someone who went for shared ownership scheme on a leasehold property using some sort of HTB offer too, what a mess..... :eek:

BF

neilio

There are a lot of anti-shared ownership people on these boards. I know several people, including me, who have done shared ownership and not had any problems. Selling after having staircased to 100% was a pain but in the grand scheme of all the other frustrations I've read about people selling freehold houses, it was no big deal.

In an ideal world, everyone would buy full-sale properties. But we live in a world where property is unaffordable for people. If all you can afford is shared ownership, then do it. You are still investing in something and someone will eventually buy it off you when you want to move.

Obviously, look into how much you are ultimately permitted to staircase by. I would be amazed if none of them let you staircase to 100%.

agrinnall

neilio wrote: »

Obviously, look into how much you are ultimately permitted to staircase by. I would be amazed if none of them let you staircase to 100%.

That's not helpful for the OP though who already owns the property and is not allowed to staircase past 80%, what can be done in other properties is irrelevant.

neilio

agrinnall wrote: »

That's not helpful for the OP though who already owns the property and is not allowed to staircase past 80%, what can be done in other properties is irrelevant.

The two previous contributors to me aren't exactly helpful either, are they. At least I'm being positive; they aren't. Did you read the whole thread? Clearly not.

neilio

To the OP, I just found this document.

It says that housing associations are obliged to allow staircasing to 100% unless you are in a protected area where shared ownership stock would be hard to replace. What area do you live in?

gg234

Only problem with shared ownership is staircasing and selling it very painful and time consuming

LonelyTed

Hi neilio,

Thank you for the link to the document. I'm reading through it now and it does sound very promising. My flat is in central London, so the rural element should not apply. It is an old Victorian terrace converted into 3 flats, so it's neither new built.

The housing association L&Q refuse to remove the clause, saying that their intial funding was from Duchy of Cornwall, imposing the 80%.

I have been going back and forth for the last 6 months! - Apologies for late reply.

Any further hints / thoughts / experience would really help. I'm thinking to take them to Tribunal.

Robert