Help with very spontaneous decision to buy shared

Hansaro

Hi all,


I have created this account because I really have no one to ask or people are not prepared just like me.
I was saving for a deposit for the last 3 years and at some point I heard about shared ownership but thought that even the affordable schem would not help me, at that time in London all I could see was 25% shares for £130000. I had a salary of 25k and that was the problem not the deposit. So I shrugged, moaned a bit that I will never be able to buy not even with 30k deposit and forgot about it.
a year has past since then and I am struggling to continue living in a box room so I was looking around London flat share prices for a bigger double room when it hit me... Saw an add on sharetobuy for a new built block of flats with 1 bed starting from 240 - with a share of less than 72k (finally, my sweetspot)
I could have even gone to the 2 bed of 90k (300k total) but I talked myself out of it as it would have been to over the top and costly.
So just from browsing in a week I attend the showroom, I sign some papers, then a bit hasted I select 3 plots from the ones remaining and wait for their call.
Yesterday I was informed I was given my 3rd option (all options were 1bed, different layouts and locations). But on closer inspection I notice that one of the walls (long wall) a bit to the kitchen and part living room side I have the lift and staircase adjacent. The sketch shows that there is nothing in between my wall and the lift.


With not enough time to think about it , housing association calls and I have to pay the reservation fee. I express my concern about the lift but all I get is a standard answer of them respecting the regulations and having walls soundrpoofed.
I ask about other options... None left on that floor (4) and none below. There are some one or 2 floor higher but it would cost 7500 or 2500 (If available) more. Pressed to secure the flat I pay the reservation fee but I am left still worried about the potential noise and footfall,
Next step is to attend a financial assesment with their suggested company and was told that if I can afford (most then likely) the more expensive flat I can then call the housing association, and if still available change my plot.


Now...this has an advantage as well, none of the walls are common with neighbours and the bedroom side is away from the lift. I don't know how big is the wall between my room and the lift shaft.
I don't know if it will be noisy. I don;t really know much about properties.


So you can imagine how I feel now, being part happy I can afford to pay around £750 a month and actually contribute to owning a share in this property and being confused and worried about not getting the best deal.


More details about the location allocated: 4th floor in a block that has a U shape, location is inside the U corner looking inside the inner court.
The alternative: 7.5k more expensive in looking out of the U same floor, away from the lift but with both long side walls common with 2 different 2 bed apartments
Other alternatives are 2.5k -5k more expensive and they all look inside the U, placed on one long side looking inside the court with common walls. There is one with just one common wall but it is open plan living so don't think it will stay available for long..


Anyhow, I have rambled here... Should I be worried? First time buyer struggles.

BorisThomson

Have you checked your affordability? It's not just the mortgage you need to pay, there will be rent on the remaining 75% and a service charge.

Hansaro

Yes, rent+service charge plus mortgage will be below 45% of my net income...forgot to mention I changed jobs and got to 27.5k..

JoJo1978

Living in any flat comes with the need to compromise. There is noise from other residents, if not from common areas like lifts, then from above or below, or water through pipes etc. Generally, newer properties are less soundproof than older ones.

I don't think you have anything to lose by going to the financial meeting but don't get pushed into quick decisions. Remember you can pull out before exchange only losing your reservation fee and any legal costs.

Have you hired a solicitor? Please use an independent one and not one connected to the building company or HA. Also research other costs associated with leasehold flats, like ground rent and service charge. Make sure you also understand fully how the SO works and how and when you can staircase (buy a higher % share.)

Lots to consider so don't rush! Good luck

Hansaro

Thank you. I feel like I am compromising already since the fight for these flats is quite big. I was given a choice of 3 in order of preference and was given the nr 3. it is not bad to be honest, it's just this fear of taking a bad decision, one that I could have avoided if I paid a higher price.
In their terms if I pull out within 2 days after paying I can get my reservation fee in full, after that is 375 and it goes down to nothing as days go by. I have decided I want to do this, the total price including service charge (I am aware it goes up and bracing myself) the rent (also up every year) + mortgage is one that I can comfortably pay every month.
I admit, I have a rough idea about SO, and was specifically interested if I can staircase to 100% for which I have received a positive answer.
Can I contact a solicitor now or after the meeting? where should I search for a solicitor?

I know I am not really knowledgeable for this big step and I am carried away by the process, step by step ticking boxes, but on this step I am stuck thinking about the lifts...
On the other hand... I could pay extra and not worry about the lifts and trade that for the inconvenience of having common walls with my neighbors.
Costs could be from 2.5k to 5k and even 7.5k more per flat. Decisions decisions.

Blondetotty

I have had a shared ownership flat since 2005 and if I knew then what I know now I wouldn't have touched it with someone elses bargepole let alone my own. I know some people are fans but I'm not.
I own in a small block of 5, no lifts and my service charge more than quadrupled in size from one year to the next as soon as all the flats were sold. Of course the HA denied keeping them artificially low but take it how you will. My rent on the remaining 50% which is 60k worth (flat was 120) has doubled in 10 years. I was on 26k and couldn't staircase above my 50% due to the "affordability" criteria.
Just please please look into it in depth and really get some financial advice, NOT just their sales advice.

I've now moved to the other end of the country and my sister lives in my shared ownership flat with the HA and Mortgage co permission because I couldn't offload the bloody thing on the open market, I gave up trying so I'm stuck with the dammed thing.

Hansaro

Thanks...I really needed this to feel more depleted...
Look, I can save a lot, maybe more than 15k a year, but what is the point in living in a box room tthinking of the day I will have had 100k for a deposit when I could just own a share and live my life? Knowing my savings potential I could quickly pay off the mortgage with over payments and then decide if I staircase or sell. This is in London and as I am interested in so many properties, many others will be after 10-15 years. Are you still selling your property?

I am only fixed on the lift(gate) issue here, 3 years and a half I lived in an end of terrace house and had noises from the neighbors but it has brick walls and it was bearable most of the times. The fact that this property has a bedroom with no common walls could also be a a good thing.

Still not decided...

[Deleted User]

If you have the room in your finances to save then it sounds like going for the more expensive options might be best and carry less risk of not being what you want.

Lunchbox

Our service charge has been half that estimated since we purchased our SO flat 3 years ago, so as long as you’re prepared for it to go up or down I wouldn’t worry about that, and the rent can only increase in line with the provisions in the lease.

Personally, I wouldn’t want a flat next to a lift and this was one of our major considerations when we moved in. The fact that you’re also having doubts about it means it may put off future buyers too. Soundproofing between our flats is excellent and far better than any older buildings I’ve lived in - we can’t hear screaming children or babies next door at all. The thing that does carry is vibration (they installed hard floors) like people stamping upstairs, so I would worry about potential lift noise.

Personally, i’d pay the little extra to avoid problems with people being put off when you want to sell it, and any potential noise.

Blondetotty

You asked for opinions and gave you mine, I'm sorry it wasn't what you wanted to here and depleted you. I really do wish you well, and luck and hope it works out for you, I know some people are happy with their SO, I'm just one of many that aren't.




If you can afford it, I would say go with the bigger space away from the lift if that's purely your worry. You want to get one you're 100% happy with and if that's niggling you now...

hazyjo

Bet they're trying to offload the worst ones first. I have never known a new-build sales person to say that they're not selling and there's little interest - they always say how popular they are and that they're flying off the shelves at the asking price or more. So be careful they're not just spinning you a line.


Take independent legal advice - don't be talked into using their associated/recommended solicitors.


The lift noise would put me off. More than that, I'd not want to buy a flat with a lift full stop due to them often resulting in high service charges.


How many storeys is this block?