Shared Ownership house value

Scottish_Dorset

Hi all,

My partner and myself had an offer accepted on a shared ownership property in February.  The house is new build but was occupied for a year and now back up for sale at the same price as the original new build.  The price was fixed.  It has been valued and we have had our mortgage offer accepted.  We are now in a quandary about the valuation of the property in these unprecedented times.  It is a manageable stretch for us to purchase this house.  We don't want to go into negative equity nor do we want to overpay for the house, if values drop.  I'm not sure if the housing association would take a reduced value, the current owners are moving back to their parents.  Unfortunately the estate agents and our mortgage broker who have been brilliant so far have been furloughed so we can't seek their advice.

Is there anyone else in a similar situation or can give useful suggestions?

Many thanks. 

[Deleted User]

Its a hard one isnt it ? 

On the one hand if you are just buying a share say 25% your risk is less than if you were buying the whole house, although you will still be paying rent on a value that is no longer true. 

Im looking at my sons options - whether to wait for a bargain or to go for a shared ownership. 

In the end we have decided to wait the market out and see if there are big drops and bargains to be had, but we have that option as Im helping him with a 50% deposit. 

If your only choice is shared ownership and in my area resale houses dont come along too often, it may be your best option if you cannot buy on the open market. 

blue_max_3

Just be aware of these issues...
https://hoa.org.uk/advice/guides-for-homeowners/i-am-buying/shared-ownership-what-to-watch-out-for/