Shared Ownership Peacehaven

Oliviav

Hello
I am just about to purchase a 45% shared ownership property on a development from a Housing Association and my solicitor recommends further investigation of the site and what fixtures and fittings are actually included as its an off plan purchase. On  doing so
i have come across a number of bad reviews about the quality of the interior  and really poor after sales communication and help from this particular Landlord/Housing Association .  Alarm bells are now ringing not only about this  but also the negative stuff ive read about the resale process and the potential service charge increases  along the way.  I have possibly been naive in thinking this a really good option for someone who cant afford to buy a house outright as opposed to the possible reality that its just corporate money making  scheme I would really appreciate any advice /experience from people who have gone down this route, either shared ownership in general or this particular Housing Association Development in Peacehaven.  Thankyou 

HampshireH

I've no idea what particular development you refer to and I've never bought shared ownership, nor a new build. But I've been the person approving the service charges for repairs within an established shared owner development (many many years ago) and arguing for write offs. Service changes will go up because life gets more expensive.

You pay for whatever you get us possibly and admin or management fee. The price of those services are unlikely to go down. Unless a service is removed.

No idea if it's a flat or house but you will also have repair costs in the service charge.

Example: flat needs lock change on communal door or the lift breaks then these costs are passed on.

Example: house on an estate and the fencing is vandalised around a grassy area or street light needs fixing. Or dog poo bins get installed. These costs are passed on to all houses within the management area if all within the housing association ownership.

Bellis28

I bought shared ownership, because I thought it was a government scheme run by housing charities that was designed to get people like me on the "property ladder." How wrong could it be, I thought? Very, very wrong, as it happens, and it has turned into the biggest financial mistake of my life. The detail of what I was getting into was omitted from information provided to me by the housing association and the solicitor I used for my conveyancing, (which they recommended - I know, I know, I was very naive) and I only found out after I'd moved in exactly what I was getting into.

Firstly, it's not actually ownership. Shared Ownership is not a tenure that exists in law. It is just a marketing term, and legally, all I "own" is an assured tenancy. This means that if I get into 8 weeks arrears of either rent or service charge, the housing association can and will repossess the entire flat, without giving me back the money I paid for my share. (Check the lease - this will be in the forfeiture section. Look for any mention of Housing Act 1988) I pay a mortgage, and I have a tenancy that is less secure than the one my gran had on the house she brought my dad up in.

The second problem is that it's not shared either. I am responsible for 100% of the maintenance of my flat, and along with my neighbours must pay for the upkeep of the building. The landlords pay precisely nothing towards anything in the building. Service charge is mandated in the lease, but is completely unregulated, and housing associations can charge what they want and deliver and much or as little service as they want, and you have to keep paying them. If you stop paying them, they repossess your flat (see above.)  

Nor is it the route to actual home ownership it's sold as. Research by Cambridge University and Metropolitan Housing Trust from 2020 found that less than 3% of shared owners ever staircase to 100% ownership, and no-one knows what happens to the rest, because a lot of the claims made by the glossy marketing poppets are not backed up by research. 

As for housing associations? They are largely unregulated and take this lack of regulation to be as dreadful as possible. There may be good ones, but there are an awful lot of bad ones, and if you can avoid living in a property owned by a housing association, you definitely should. 

I know that people buy shared ownership because it's the only option open to them other than renting privately, but if you can avoid it, I would strongly recommend you do so. I also know that some people can make it work for them, but just because some people make it work for them doesn't mean there aren't significant problems with the shared ownership itself, and you probably shouldn't assume that you will avoid these problems. 

Sorry to be the bearer of bad tidings. Good luck!