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Shared Ownership + Leasehold
Hardlife91
Posts: 15 Forumite
Hi Everyone,
I have had my flat on the market since July 2020. It is a 50% Shared Ownership property with a 55 year lease remaining. It was originally valued at £50,000 but is now on the market via a conditional auction price of £32,000. I really need some help to understand what I should do with the property, I'll include a rightmove link below.
The good:
- In a nice area
- Nice community of other owners
- Close to city
- Garage
- Cheapest flat on the market by a long shot. There is also another property for sale with an asking price of £52,500.
The bad:
- 50% Share
- Leasehold 55 years remaining
- I cannot rent the property
- Owners cannot have pets that would require using communal doors (dogs, cats, etc)
- Potential buyers cannot buy if they own another property (but the can be in the process of selling their property) and have to go through a vetting process with a company called Derwent Living who own the other half of the property. This is why the property is on as a conditional auction rather than a traditional one.
- It currently costs me around £300 a month
Options (that I can think of):
- Keep on as I am with no real change
- Change it from an auction back to a normal sale removing the auction fees for the buyer and shifting the fees onto me
- Extend the lease for the cost of around £18k and hope it sells after this.
Any advice or ideas are welcome!!
Link: https://www.rightmove.co.uk/properties/71846121#/?channel=RES_BUY
I have had my flat on the market since July 2020. It is a 50% Shared Ownership property with a 55 year lease remaining. It was originally valued at £50,000 but is now on the market via a conditional auction price of £32,000. I really need some help to understand what I should do with the property, I'll include a rightmove link below.
The good:
- In a nice area
- Nice community of other owners
- Close to city
- Garage
- Cheapest flat on the market by a long shot. There is also another property for sale with an asking price of £52,500.
The bad:
- 50% Share
- Leasehold 55 years remaining
- I cannot rent the property
- Owners cannot have pets that would require using communal doors (dogs, cats, etc)
- Potential buyers cannot buy if they own another property (but the can be in the process of selling their property) and have to go through a vetting process with a company called Derwent Living who own the other half of the property. This is why the property is on as a conditional auction rather than a traditional one.
- It currently costs me around £300 a month
Options (that I can think of):
- Keep on as I am with no real change
- Change it from an auction back to a normal sale removing the auction fees for the buyer and shifting the fees onto me
- Extend the lease for the cost of around £18k and hope it sells after this.
Any advice or ideas are welcome!!
Link: https://www.rightmove.co.uk/properties/71846121#/?channel=RES_BUY
0
Comments
-
Will it really cost £18,000 to extend the lease given it’s share of freehold?0
-
Yes it will, I have to pay the other half of the owners costs as well as my own.0
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