Trapped in a shared ownership property - advice needed

JR1000 · 1 October 2019 at 5:10PM

Hi all,

I purchased a shared ownership property 2 and a half years ago. At the time this was the only way I could get on the property ladder in London.

I was able to purchase 50% (actually you don't get a choice as I had to purchase the most that I could afford based on pre purchase assessment calculations).

Since then my situation has changed and I am trying to sell the property with a view to renting again.

However, I'm encountering a serious problem which is causing some distress.

There is no interest in the property. I believe this is down to the % share and valuation of the property.

The property is a studio and the share value of 50% is approx 140k.

The problem I think is that There are plenty of properties in the area where you can buy a smaller share but own a a larger flat with 1 or 2 bedrooms.

If I were buying again I would probably buy a smaller share in a bigger property.

I have no idea what to do in this situation. I really need to get out of the flat but sub letting isn't allowed. At least, it's a risk to do in case you get caught. There's also Airbnb but there's no guarantee anyone will rent the flat, and I would think that is also classes as sub letting. Also in London you can only Airbnb a place for a max of 3 months.

I can't afford to buy the remaining 50% and then sell it outright.

I can't think of any other options available to me.

If anyone on the forum can offer any advice or words of wisdom I would be hugely appreciative. I'm at a complete loss and desperate to find some way out.

Kind regards,

James

channel · 1 October 2019 at 5:23PM

Can't it be marketed at 100% share, as a buyer that wanted full ownership could buy the 50% share and then buy the remaining 50%? With some housing associations you have a right to buy the remaining share.

AdrianC · 1 October 2019 at 5:25PM

The HA won't buy back the 50% share, I take it?

Reduce the price. It'll sell, sooner or later, as soon as somebody thinks it's worth paying that price for it.

HampshireH · 1 October 2019 at 5:25PM

Have you asked the freeholder if they will take it back?

Arklight · 1 October 2019 at 6:22PM

channel wrote: »

Can't it be marketed at 100% share, as a buyer that wanted full ownership could buy the 50% share and then buy the remaining 50%? With some housing associations you have a right to buy the remaining share.

SO is dodgy with that. They usually allow staircasing with a new set of admin fees each time. It's probable they wouldn't allow another buyer to walk in off the street and just buy the entire thing. Think of all those years of lovely rent and staircasing fees they'd miss.

The terms for selling can be very restrictive.

Arklight · 1 October 2019 at 6:29PM

AdrianC wrote: »

The HA won't buy back the 50% share, I take it?

Reduce the price. It'll sell, sooner or later, as soon as somebody thinks it's worth paying that price for it.

He may not be able to. I've heard of other SO "owners" who are only allowed to market their share proportionally to what the housing association decides is the value of their share.

It's a terrible device that has trapped a lot people.

AdrianC · 1 October 2019 at 6:35PM

Arklight wrote: »

He may not be able to. I've heard of other SO "owners" who are only allowed to market their share proportionally to what the housing association decides is the value of their share.

It's a terrible device that has trapped a lot people.

Oof.

Then, of course, there's lenders not liking studios - SO or not...

Crashy_Time · 3 October 2019 at 2:32PM

Arklight wrote: »

He may not be able to. I've heard of other SO "owners" who are only allowed to market their share proportionally to what the housing association decides is the value of their share.

It's a terrible device that has trapped a lot people.

SO and HTB are just massive scams to keep the property debt bubble lumbering on a while longer.

sal_III · 3 October 2019 at 2:41PM

Crashy_Time wrote: »

SO and HTB are just massive scams to keep the property debt bubble lumbering on a while longer.

Do you ever offer advise/comment on topic or are you only ever preaching house market crash?

EmmyLou30 · 3 October 2019 at 5:18PM

Just curious, what is your reason for wanting to leave a flat where you have a secure roof over your head to go back to an ever rising rental market that's out of your control where the threat of a S21 is always a risk? Far better to stay on the property ladder surely?