Giving up share in SO house

SOStress · 28 February 2019 at 11:06AM

Hi all,

I've found myself in a difficult situation. My wife and I purchased 25% in a shared ownership house 8 years ago for a price of £25.500. At the time we were struggling to afford rent and the mortgage and rent for the SO property worked out at £200 cheaper per month than renting in our area.I realise now it was a stupid idea and I've learned my lesson.

Eventually we both increase our salaries which allowed us to save and also pay off the mortgage. We've since managed to save enough to get a mortgage for a house better suited for our needs that we would own outright. However the SO house has been on the market for nearly a year now with zero interest. The HA won't lower the price and it has a short lease (52 years) so I feel we have no hope of selling it. Currently it is costing us £400+ PCM and at this point I just want to cut my losses and be rid of it. Before I approach the HA I wanted some advice on whether I can simply ask the HA to take my share back completely free.

Is this a feasible idea or can they refuse to take it back? Will it ruin my credit? Will i incur legal fees?

I realise it's a lot of money to just sign off but the stress of being tied to a house I no longer use or want is beginning to ruin my life and straining my relationship. I just don't want to feel trapped anymore!

Thanks in advance

T

cattie · 28 February 2019 at 12:42PM

This doesn't answer your query, but I'm curious to know whether your solicitor gave you a warning regarding buying a property with such a short lease remaining?

Most reputable solicitors would make an attempt to warn prospective buyers that a short leasehold might not be mortgagable should you wish to sell & would only really be suitable for a cash buyer. Cash buyers are usually investors rather than owner occupyers & shared ownership wouldn't be available to an investor.

You've found yourself in a horrid situation & I hope you can soon find your way out of it.

Rosieandjim · 28 February 2019 at 2:43PM

Surely the lease can be extended at point of exchange for who ever wants to buy it? Also would you consider linking to the advert so peeps can give you some idea what might be putting people off wanting to buy.?
Also when you say the HA wont lower the price has it been valued correctly

SallyDucati · 28 February 2019 at 3:20PM

Is it only being marketed through the HA at the moment? If so isn't there a cut off point after which you can go to open market via a normal estate agent? I know this was the case with my sisters house, she did manage to sell it through the HA but the advert on-line was woeful!