How can I get rid of my shared ownership property?

numbercruncher8

Would it not be the price?

Not an expert on the area but going on Rightmove and a 1/2-mile radius, there are 2 bed houses on shared ownership for only a little more (£67k), or you can have 100% of a 2-bed flat which is also new-ish build for £65,000. What would be the reason for a buyer to pay such a premium? Maybe there is one, I don't know.

There is nothing wrong with the property as far as I can see. So shifting it either means waiting it out for that certain someone who will love it, or reducing the price to with the range of some people. To my untrained eye (correct me if I am wrong) the flat is much preferable to the other two I saw at £65k, but I can't see why it's double the price.

If it were me I'd just get on with it and cut the losses. The market does not care what you paid, or that all your equity is gone, and why should it? That money is sunk costs now and should not influence a decision today.

If there is to be a price crash it doesn't affect everything evenly. If prices fall 10% on average some places may fall 20%, others by 0%. If you feel that your place is expensive for the area it isn't much of an extension to guess that everyone else will and thus it'll be one of the places that fall by more.

blue_max_3

It's going to cost you to keep it. If you don't live there, your insurance could be invalidated. Empty house insurance is very expensive. And you'll have to pay council tax and energy standing charges too. That's on top of the ongoing costs.
Really, you should sell. The problem you may have, is that if there is documentation regarding the issues with the neighbours and claims against the HA, you will have to disclose to prospective purchasers.
It looks tidy enough and now the market is moving, you may find more interest. Good luck.

Gary1885

The ones you see at half the price are likely to be in less desirable areas. There are some down the other end of Rainhill, which although supposedly the "posh end", are incredibly dated and the entire street seems as though it's possibly unadopted, so the whole thing looks like a bit of a time warp.  Going in the opposite direction, you'll see flats in Whiston which are very cheap, but Whiston - particularly that part of it - is a much less desirable area.  Despite its close proximity, there is a definite difference in that respect.  There are plenty of full flats for sale in Prescot, opposite the retail park near Tesco.  They are very cheap, but they're also right opposite the retail park, crammed in and have very small windows with views of either the supermarket car park, the rear car park for the flats, the bin sheds or other flats.  It's also not really an area I'd want to be.

Despite this, I did reduce the price of my 50% share to £60,000.  I've had 5 viewings booked, although frustratingly 4 have cancelled, one after realising it was shared ownership.  I spoke with the estate agent, who still thinks it is a very good price.

trex227

So you’re paying the estate agent regardless of whether it sells? Not sure I’d trust any advice they have about the price- they have no incentive to get it sold if they’re getting paid anyway. When you put it on the market did you get a few valuations?

Gary1885

Yes, but two similar properties in the same estate did sell for the amount we're talking about. Since then, we've had lockdown. The worst hit will be shared ownership, which was already a niche (ripoff) market. 

I'm thinking of trying to get a much lower RICS valuation, staircase to 100%, remove the forfeiture clause from the leasehold and try going down the rental route. I just need to keep an eye on the market. 

[Deleted User]

I think you are looking at this through a warped glass.  Owning a flat for such a short period of time, especially a shared ownership flat, is going to mean less of a gain from selling it  But I doubt you would have been able to privately rent a flat for less.  If you have a mortgage, you are always going to be paying interest in one way or another.  Some consider rent 'wasted money' but they forget they are getting the use of somewhere to live, that's what they are paying for which is always going to be the way it works.  One way or another you have to pay for somewhere to live.  Obviously you have had lots of repair problems but hopefully they are sorted now. 

Purple Bricks don't have a good reputation, there are good agents within purple bricks, but not all of them are good. It might be better if you write off the £1,300 and go to a traditional EA.  However, I'd wait for the effects of the reducing of the more stringent lock down rules to lead to increased interest first.  

As its shared ownership, it will sell more slowly than a traditional property as the population looking for that kind of purchase is more limited, but it will sell if priced right.  Can you contact the HA and see what their views on what they consider an acceptable selling price is?  You might have to reduce the price further to make it more attractive.  Think of the money you won't be paying on the mortgage/rent/service charges anymore.  That's all you can do. Some people do make money from selling shared ownership properties but the market has to be right for this (and with prices dropping or staying stagnant this is not the right time) and usually it takes staying in the property longer while prices rise around them.  Shared ownership properties can be over priced when brand new, you must have realised this but the fact you could buy a 50% share made it possible for you to buy so you went for it.  

Eventually it will sell, possibly with a different EA or at a lower price.  I'm afraid there is no magic to make this happen though.  When it does you can walk away with a sigh of relief.

Chandler85

I don't understand, you could have overpaid your mortgage and got more equity then you would feel like you were getting more out, but actually you have used that money enjoying your life etc.  So there is no real benefit, is the end goal basically to get rid of the property and break even?  Your life has moved on since when you bought it, you've met someone else, needed to move.  So the property isn't for you any more.

Have you tried asking the HA if they are interested in buying it back at whatever cost would leave you with a clean slate?