shared ownership how to break free??

HampshireH

To be honest (and its a hard one to hear)

Your HA have little/no responsibility. It isn't like being a social tenant.

To all extents and purposes you are homeowner and it is your problem (harsh but true to your HA).

A poster above asked if the HA would put you into one of their rented units.

This would be a no go most likely. Those houses are for people who have waited sometimes decades to get housed. You cannot just bypass the system.

The only time I have known people in SO be rehoused by the HA is in times of severe debt where they were owned thousands in rent and the lender was seeking their share also. In such cases (I had experience of working on 2) it really was a last resort and came after the threat of kids had been removed due to being unable to be cared for etc due to the money issues & housing issues . The circumstances really do need to be dire & this happened with full multiagency cooperation. (May be easier in other boroughs/counties)

Realistically if there is capital in the property & a wage OP could rent. Her husband could get a job in addition to self employment to support the family. It would become a reassessment of priority.

TanSki

HampshireH wrote: »

To be honest (and its a hard one to hear)

Your HA have little/no responsibility. It isn't like being a social tenant.

To all extents and purposes you are homeowner and it is your problem (harsh but true to your HA).

A poster above asked if the HA would put you into one of their rented units.

This would be a no go most likely. Those houses are for people who have waited sometimes decades to get housed. You cannot just bypass the system.

The only time I have known people in SO be rehoused by the HA is in times of severe debt where they were owned thousands in rent and the lender was seeking their share also. In such cases (I had experience of working on 2) it really was a last resort and came after the threat of kids had been removed due to being unable to be cared for etc due to the money issues & housing issues . The circumstances really do need to be dire & this happened with full multiagency cooperation. (May be easier in other boroughs/counties)

Realistically if there is capital in the property & a wage OP could rent. Her husband could get a job in addition to self employment to support the family. It would become a reassessment of priority.

Thank you for your detailed reply. I think I knew all of this deep down I was just hoping there was a way out, that I hadn't already been aware of thank you once again. We are hoping to look into Heylo Housing 'buy your own home' scheme. its similar to shared ownership but with no mortgage. you need 10% of the value of the property, which I'm hoping we could raise following the sale of our flat.

AdrianC

Seems like you've got three basic choices.

1. Shrug and hand the keys back to the HA, then just walk away.
2. Sell your 25% with short lease.
3. Extend the lease.

It's all down to the precise numbers... You have 25% of a flat that with a long lease would be worth £250k-300k. That's £62,500-75,000.

Statutory lease extension would be somewhere around £20-25k, based on a non-shared ownership flat. I have no idea how that would work with SA. But I find it very difficult to believe that it's really going to work out anywhere short of massively worthwhile to extend the lease... Whether you can raise the funds is another question, of course.

TanSki

Hi and thank you for your reply. We have decided to try and sell and extend the lease as it would add an extra 90 years on top of the current 72years left. we are responsible for 25% of the premium of extending. so works out around £5/6k including legal fees which adds an extra £15k to the overall value of the property, so I feel its worth it in the long run.

We are just worried ( my husband and I) whether to use the Heylo scheme as the rent is calculated at 4.89% of the un-purchased mount ( this is so high), in order to benefit we are now considering moving outside of London but using the Heylo 'your home' scheme.

Just need to see how soon we can sell, we've had an open day today with lots of interest. selling the flat means we have to cover the legal fees for both ends ...The housing association charge an admin fee of 1% plus VAT on the overall price of the property, not the share, which amounts to £3,800, criminal!!!

sunny19

You lucky they only asking for 25% of the premium as mine(Metropolitan Trust) is asking for the full 100% despite only owing 40%