Shared ownership

LEahmarie1988

I agreed to purchase a shared ownership property in December. My confirmation agreement letter breaks down the rent and service charge costs. My mortgage provider then asked for the memorandum, and the housing association have sent this to me as well, but it had increased the service charge and rent from the agreement letter. Can they do this? My mortgage advisor even rang the housing association to make sure of the costs and was told as per my letter, so I will lose out of this mortgage if they have increased the costs without informing me or my advisor. Surely they can't just up it without informing me for the sake of my mortgage etc?

csgohan4

ensure it is correct, but the HA can do whatever they want, you on the other hand can choose to accept or not

PixelPound

Does it say how much they can raise annually by? If they have already increased it, could it be a forewarning that more increases may make selling it on later a difficult task?

AliceBanned

Housing associations increase their rent each year on 1st April. There is a maximum amount they are allowed to increase it by and with shared ownership your lease should state that it is a certain percentage of their share per year. Service charges on any flat can be increased without such strict limits. You should be able to find out more before you go ahead but it is normal for rises at least in line with inflation.