Shared ownership timeline

kazzyma3

Hey everyone, me and my partner are first time buyers and we have recently gone for shared ownership. Currently waiting to hear back from our housing association but recently we had and agreement in principle done and it was all agreed with. However, were not sure what are the next steps to this.

How does this process work? We have a mortgsge broker who helped us get our mortgage in principle, however as we are applying for an off plan property are there other candidates applying for the same property, is it some sort of bid and then they choose who they want to reserve the property. As we haven't heard back about reserving a property as of yet. I assumed if we got our mortgage in principle agreed on we can reserve but as of now we haven't heard back. Its taking such a long process.

We did sign a terms and conditions agreement but thats all we know 😔 what we're your timeliness?

Blade71984

Once you have you AIP, you should be able to reserve the property straight away, if you have passed the HA criteria, we literally reserved the property 15 minutes after receiving the AIP. 

RJM90

We are selling a shared ownership right now. Basically, regardless of whether you have your agreement in principle, you need to be accepted by the housing association. Fill out their forms and when they give the go ahead you can put an official offer in. If accepted the house should be yours. Then it will be a case of starting your official mortgage application/legal proceedings. 

For us, when we accept an offer, we won’t be encouraging people to proceed with surveys etc until we have found a property ourselves. We’re actively looking but because the market is so hot, it’s proving difficult to find the right property quickly. 

Hope this all helps!

RJM90

Sorry I should also say, housing associations vary. For us when we got our property, despite massive interest we were accepted at asking price. If there’s a lot of demand, some may offer above asking price. This is sometimes allowed by the HA but sometimes isn’t. 

Our HA have explained that people can offer more than asking but we would have to check with our RICS valuer to confirm whether the property would be worth what they were offering. If he agrees we move forward, if not, the asking price is what it is.

The vendor can choose which offer they accept. We have 8 viewings over the next two days for ours after listing yesterday. Our first viewing this morning has already said they want it. As harsh as it may sound, we will evaluate every offer and make the decision which makes best sense.

[Deleted User]

@RJM90. Do you get to find out if they have passed all the housing associations vetting prior to accepting an offer? 

I've just picked up a client who has had accepted offers on 2 separate occasions only for the buyers to fail the HA checks

RJM90

Deleted_User said:

@RJM90. Do you get to find out if they have passed all the housing associations vetting prior to accepting an offer? 

I've just picked up a client who has had accepted offers on 2 separate occasions only for the buyers to fail the HA checks

For our Housing Association, yes. The buyer is specifically told by the HA not to put an offer in until they have been approved. We had two viewings yesterday and both wanted the house - we have 9 today too. As much as we’d love a quick offer, this is the best way to avoid time wasters who won’t be accepted.