Buying a Private Property in Shared Ownership Social Housing Project? Worth it?

ANDY87

Slithery wrote: »

There's no 'of course' about it, the lease may well prevent you from letting out the property.

There is since I’ve already confirmed it with the estate agent. I’m viewing the property tomorrow.

Slithery

Who cares what the EA says? They have zero legal training and work on behalf of the vendor. You need your solicitor to read the lease to make sure.

gomer

ANDY87 wrote: »

There is since I’ve already confirmed it with the estate agent. I’m viewing the property tomorrow.

Make sure you keep all your valuables out of site & use a steering lock.

gomer

ANDY87 wrote: »

And you’re basing this on what exactly? I live right next to the property I’m enquiring about and it’s next to a residential area with Victorian style houses? There’s a retail park 5 min walk away with a 24 hour Asda Superstore, Next, B&Q, Curry’s PC World, etc. which is only a plus to have so close by. It’s no where near any industrial park?

New Spitalfields Market is close by, but will be demolished soon (has been approved) and instead be converted to new housing developments in the future.

Stop spreading fake new about something you know nothing about.

Based on driving past it most days. The tower block you are referring to has only recently been finished & is on the old industrial area by the A12, on the entrance slip road to what is now a retail park overlooking the bus depot. I drive past it all the time. With the doors locked.


If thats all too fake news for you i will gladly post a map. Clearly you are not terribly choosy about location

princeofpounds

Hi OP


Firstly sorry for mistaking your interest as shared ownership, but I hope the rest of my post was useful to some degree.


If you aren't shared ownership, you probably will be able to rent it out but not AirBnB, just based on common practice. You'll need to get your solicitor to confirm that in the lease terms however.


New builds do tend to be substantially overpriced. I don't know why - probably a psychological anchoring bias thing - but speaking to a couple of colleagues in London who bought them recently, you can and often should negotiate aggressively on price. I've never considered them personally because of the silly list prices, so I suspect the tactic can be counterproductive for the developers at some level.


No particular comment on this development itself. Yeah Leyton might not be great but unless you're a multi-millionaire there's always compromise at some level in London, it all depends what you're getting for the price.

Cakeguts

The private sales in what is effectively a block of shared ownership flats are there to subsidise the shared ownership sales. The shared ownership flats will have a cheaper fit out inside however when they are all no longer new and the prices drop the price of the private sales will go down to match the cheaper shared ownership flats because there are more of them and when sold not new buyers won't be able to tell the difference between a flat that was a private sale and a flat that was shared ownership that has been staircased to 100% ownership. So expect a significant drop in value. This will only be a problem if you want to sell in the next 10 years and house prices in London don't increase enough to make up the difference.



I hope that you are not going to get a large mortgage.

ANDY87

gomer wrote: »

Make sure you keep all your valuables out of site & use a steering lock.

Lol. I bet you’re afraid to use to the tube as well? The night tube must be like a horror show for you :rotfl:

ANDY87

gomer wrote: »

Based on driving past it most days. The tower block you are referring to has only recently been finished & is on the old industrial area by the A12, on the entrance slip road to what is now a retail park overlooking the bus depot. I drive past it all the time. With the doors locked.


If thats all too fake news for you i will gladly post a map. Clearly you are not terribly choosy about location

Yes it is fake news indeed. I don’t know which bus depot you’re referring to.

I’ll await the his mystery map of yours :money:

ANDY87

princeofpounds wrote: »

Hi OP


Firstly sorry for mistaking your interest as shared ownership, but I hope the rest of my post was useful to some degree.


If you aren't shared ownership, you probably will be able to rent it out but not AirBnB, just based on common practice. You'll need to get your solicitor to confirm that in the lease terms however.


New builds do tend to be substantially overpriced. I don't know why - probably a psychological anchoring bias thing - but speaking to a couple of colleagues in London who bought them recently, you can and often should negotiate aggressively on price. I've never considered them personally because of the silly list prices, so I suspect the tactic can be counterproductive for the developers at some level.


No particular comment on this development itself. Yeah Leyton might not be great but unless you're a multi-millionaire there's always compromise at some level in London, it all depends what you're getting for the price.

Thanks for the feedback! Really useful. I guess the thing that attracts some people (including myself) to new builds is that you get a modern home from the get go. It’s the convenience factor. The flat I’m renting right now is a new build and has a winter garden (balcony) which is a new trend amongst flats. You don’t get this with the typical London Victorian style terraced houses/flats. What I’m trying to get at is that some people prefer a new exterior and interior.

ANDY87

Cakeguts wrote: »

The private sales in what is effectively a block of shared ownership flats are there to subsidise the shared ownership sales. The shared ownership flats will have a cheaper fit out inside however when they are all no longer new and the prices drop the price of the private sales will go down to match the cheaper shared ownership flats because there are more of them and when sold not new buyers won't be able to tell the difference between a flat that was a private sale and a flat that was shared ownership that has been staircased to 100% ownership. So expect a significant drop in value. This will only be a problem if you want to sell in the next 10 years and house prices in London don't increase enough to make up the difference.



I hope that you are not going to get a large mortgage.

Thanks a lot for the feedback! This makes a lot of sense. I’ll definitely take this into consideration before making any decisions.