Problems with shared ownership

Luch

In 2012, I moved into a brand new apartment through the intermediate rent scheme, based on which I was supposed to save the deposit and after no earlier than six months apply to buy a share in the flat from the housing association. I applied for the shared ownership in that flat two years after I moved in, but the application was rejected because my gross income was £67k vs £66 - the max gross income for the shared ownership at that time.

I waited four more years and the gross income threshold was increased to £90k for London, but, unfortunately, my gross income increased higher to £100k.

I applied again and it was rejected because the gross income was higher than the threshold. When I have recently applied for the shared ownership I was qualified only for the 25% share because I have child support payments and pension payments. By paying £730 child support per month my gross income is effectively £83,800. The recent change is that I also have to support my brother in the uni (I have a committment to pay £920 per month for him to study in Japan, my farther died early at 56 and therefore my brother has no support apart from me) and my mum, who receives a £100 pension per month, I am sending her money regularly.

However, I did not want to argue since the housing association suddently offered me to buy the flat outright and sent me an offer, I accepted it, arranged a mortgage, and hired a solicitor, everything was ready, I waited for the legal docs to be sent to my solicitor.

Then the housing association’s solicitors said that it should receive a permission from Newham Council to allow to sell the flat to me outright, and today the housing association told me that the council did not allow to sell the flat outright and the housing association offered to compensate my unreimbursable expenses.

I am now thinking to hire a lawyer to look into this situation. Can you please recommend a lawyer with experience in such situations? What other routes can I have?

You may ask why I stick to the flat so much. Several reasons: my 8 year old daughter remembers the flat as my only home that she has visited it since she was 2 year old. I cannot afford any similar quality flat in Newham or in Tower Hamlets. I am used to living here, I like neighbourhood, it is close to my work. The price is very low £305k for a two bed room 67sqm flat in zone 2 in London. The flats that I see around are £600-800k: I have no deposit nor income for such flats. I do not want to go outside of London because I need to have physio in London in my flat twice a week. I am seriously thinking to look for another job that pays £70-75k, but it will push back my career prospects. I am not at fault that my income has increased. When I moved in the flat my income was below the threshold.

This is the answer from the housing association:

“I can confirm that I have now heard back from Newham Council regarding the 100% purchase of the above property.
!
Unfortunately, you will not be able to purchase a 100% of this property due to the Section 106 Agreement that is in place. !Newham Council has confirmed that the Section 106 Agreement doesn’t allow any person to purchase a 100% share of their property as this is affordable housing with a maximum share purchase level being 75%.! !As your income exceeds the £90k threshold it’s neither an option to purchase a share of this property as it’s deemed with your income that you could purchase on the open market.
!
I fully appreciate this in not the outcome you was expecting and apologise for inconvenience caused to you.! I would like to confirm that the housing association will reimburse you any costs that you have incurred whilst going through the process of purchasing the above property.! You will need to provide us with supporting invoices, documents to support any claim.! We will of course be notifying our solicitors immediately and suggest you notify your solicitors/lender asap.
!
Your original Assured Shorthold Tenancy Agreement was to allow you the benefit of the RTHB product for a period of up to 5 years.!! Throughout this time it gave you the option to save towards purchasing a share of you property.! As you are aware your tenancy was extended back in November’17 for a further 9 months which will expire on the 17th !August’18, after this date you will need to make alternative living arrangements.
!
If you would like to discuss this further please feel free to make contact with me however unfortunately this will not change the outcome.”

csgohan4

Luch wrote: »

In 2012, I moved into a brand new apartment through the intermediate rent scheme, based on which I was supposed to save the deposit and after no earlier than six months apply to buy a share in the flat from the housing association. I applied for the shared ownership in that flat two years after I moved in, but the application was rejected because my gross income was £67k vs £66 - the max gross income for the shared ownership at that time.

I waited four more years and the gross income threshold was increased to £90k for London, but, unfortunately, my gross income increased higher to £100k. That's good news

I applied again and it was rejected because the gross income was higher than the threshold. When I have recently applied for the shared ownership I was qualified only for the 25% share because I have child support payments and pension payments. By paying £730 child support per month my gross income is effectively £83,800. The recent change is that I also have to support my brother in the uni (I have a committment to pay £920 per month for him to study in Japan, my farther died early at 56 and therefore my brother has no support apart from me) and my mum, who receives a £100 pension per month, I am sending her money regularly. Irrelevant what you spend your salary on, it's salary earned that counts

However, I did not want to argue since the housing association suddently offered me to buy the flat outright and sent me an offer, I accepted it, arranged a mortgage, and hired a solicitor, everything was ready, I waited for the legal docs to be sent to my solicitor.

Then the housing association’s solicitors said that it should receive a permission from Newham Council to allow to sell the flat to me outright, and today the housing association told me that the council did not allow to sell the flat outright and the housing association offered to compensate my unreimbursable expenses.

I am now thinking to hire a lawyer to look into this situation. Can you please recommend a lawyer with experience in such situations? What other routes can I have? you have no come back, you have not exchanged contracts yet and the vendor simply deemed you as not suitable and rightly so

You may ask why I stick to the flat so much. Several reasons: my 8 year old daughter remembers the flat as my only home that she has visited it since she was 2 year old. I cannot afford any similar quality flat in Newham or in Tower Hamlets. I am used to living here, I like neighbourhood, it is close to my work. The price is very low £305k for a two bed room 67sqm flat in zone 2 in London. Above all irrelevant, you failed the criteria check, council is not interested in reasons for wanting, it's like going to a vendor and asking for a large discount because I want it and it's a nice house


The flats that I see around are £600-800k: I have no deposit nor income for such flats. You earn over 100k and you have no deposit and no income?? You need to do have a look at your outgoings and see where all your money is going to


I do not want to go outside of London because I need to have physio in London in my flat twice a week. I am seriously thinking to look for another job that pays £70-75k, but it will push back my career prospects. I am not at fault that my income has increased. All personal choices and preferences, irrelevant to the council

This is the answer from the housing association:

“I can confirm that I have now heard back from Newham Council regarding the 100% purchase of the above property.
!
Unfortunately, you will not be able to purchase a 100% of this property due to the Section 106 Agreement that is in place. !Newham Council has confirmed that the Section 106 Agreement doesn’t allow any person to purchase a 100% share of their property as this is affordable housing with a maximum share purchase level being 75%.! !As your income exceeds the £90k threshold it’s neither an option to purchase a share of this property as it’s deemed with your income that you could purchase on the open market.
!
I fully appreciate this in not the outcome you was expecting and apologise for inconvenience caused to you.! I would like to confirm that the housing association will reimburse you any costs that you have incurred whilst going through the process of purchasing the above property.! You will need to provide us with supporting invoices, documents to support any claim.! We will of course be notifying our solicitors immediately and suggest you notify your solicitors/lender asap.
!
Your original Assured Shorthold Tenancy Agreement was to allow you the benefit of the RTHB product for a period of up to 5 years.!! Throughout this time it gave you the option to save towards purchasing a share of you property.! As you are aware your tenancy was extended back in November’17 for a further 9 months which will expire on the 17th !August’18, after this date you will need to make alternative living arrangements.
!
If you would like to discuss this further please feel free to make contact with me however unfortunately this will not change the outcome.”

You earn above the national average, try and save as much as you can and you may have to make tough choices, a lot of people would love to live near Central London, but it's not a right to do.


I had to move away from London as I wouldn't have been able to save for a deposit and buy a bigger house than if I stay in London. Be lucky to get a studio flat for the price I paid.