Shared ownership HORROR stories

Grandlygrace

I’m just about to purchase a shared ownership property (40% share with 60% shared owned by a housing association).
Recently a friend told me about another friend of hers who got trapped in a nightmare. She bought a 50% share but the housing association sold the leasehold to a private developer who instantly put the charge up from £20 a month to £200. The developer furthermore appears to be some kind of charlatan and doesn’t service the area and is currently stalling and refusing to let anyone sell.
My friend said to me ‘beware...read all the small print’.

So, a few questions (wondering if anyone knows?), is this even legal? Can a housing association set up to provide affordable housing sell to someone who could potentially cripple people with this huge bill increase?

The HA I am buying with is a charity and they seem to be really good...loads of 5* reviews on their Facebook page and they seem committed to the local area and generally, all round, nice people. I am using an independent solicitor, so I am just wondering, what should I be looking for in the lease? Is there anything I can do to protect myself from something like this?

HampshireH

It is unsual (but certainly not unheard of) for a HA to sell on their affordable shared ownership properties unless the HA is no longer viable having the stock or the agreement which was tied into the funding to build them in the 1st place has come to an end.

Sounds like your friend was unlucky. But reading the small print is always good advice.

LadyDee

How do you know all the reviews on Facebook are genuine. If you are contemplating going into this arrangement I'd be chatting to the other owners rather than relying on FB.

Make it your business to call round and make an opportunity to get talking to one or two of the current occupants.

eddddy

Grandlygrace wrote: »

...the housing association sold the leasehold to a private developer who instantly put the charge up from £20 a month to £200. The developer furthermore appears to be some kind of charlatan and doesn’t service the area and is currently stalling and refusing to let anyone sell.

Without an explanation, those kind of comments are often not very helpful.

There is a whole pile of legislation that should protect leaseholders (including shared ownership leaseholders) from unreasonable service charges.

For example, it could be that the original HA couldn't afford to maintain and repair the properties with just £20 per month, so they have got into a very bad state. So now the leaseholders have to pay a big chunk for vital repairs.

And the comment about "refusing to let anyone sell" sounds like it may not be the 'complete picture'.


Having said that, there are good freeholders and bad freeholders. It's worth investigating what your freeholder (i.e. the HA) is like, and consider the possibility that they might sell the freehold to somebody else.