Shared Ownership Buyers in Past Year Rent Question Please Help!!

sofsofsof

Hi , we are in the process of buying a shared ownership home.
In the most Hypothetical sense....
If the housing association advertise the house on 1/3/2017 as a rent of £100.00pcm
but the 1st april yearly it is stated on the lease as the rent renewal date... could during our buying process the rent increase to more then wot it was advertised at? would we be told this by the housing association...
Also please can people advise as the legal guidelines now on rent increases for shared ownership homes.

Thanks!!

da_rule

The lease will spell out what the rent is and when any increases come into effect and what these will be. It won't be up to the housing association to advise you of this, but your solicitor. So once they have a draft copy of the proposed lease, ask them.

You could make an approach before hand and ask the association but they may just reply that it's in the lease.

In terms of rent increases, the ones I have seen recently have been inflation (and the leases state which measure they use to asses this - RapI etc) plus 2-4%.

sofsofsof

thanks , so if on the lease its stated as yearly reviews on Febuary each year - they cant change this and up this before we move in? (paranoia talking here haha!)
Thank you for your reply. and from what i have read there wos a recent shared ownership rent increase crackdown almost where they couldnt just increase to wot they wanted, but on a note seems the one we are thinking of is RPI + 0.5/2%

da_rule

If the lease is a new one then they can amend the rent review dates at any point up until it's signed, or it may be linked to an anniversary of the lease taking effect etc.

Cakeguts

Just a warning about shared ownership. Depending on the mortgage and rent levels it can be more expensive than just a straight mortgage. So just paying a mortgage can cost less then the mortgage and rent combined.

If possible it is always best to avoid shared ownership if you can.

debbie2311

Just replied to your other thread on Guinness housing - did you go with them in the end? I'm going through the process with them too at the mo and wondered how it's all going for you?