Recently Bought Shared Ownership House- Problems with HA

sherbetlemons

Hi Everyone,

I wasn't sure where best to post this but I'm after a bit of advice off people more knowledgable than me!

Back in March I bought a 25% share of a new build property outright with cash from an inhertiance. I pay rent to a housing association on the remaining 75%. During my reservation appointment I was advised that because it was a new build, there was a 1 year warranty in place that ran from the time the HA bought the home (June 2023) and any defects would need reported to the HA who would then arrange repair with the housing developer (persimmon) and I signed a declaration to this effect. Further along in the conveyancing process my solicitor mentioned that this was actually 2 years and I assumed following this clarification that everything was in order. Since moving in in March I have raised a number of (admittedly rather minor in the grand scheme of things) defects and had a snagging report done which I submitted to the HA to forward to persimmon. I've had to chase a lot of these which has been challenging as corropsondence from the HA has been sporadic at best and last week I received an email from them advising that the warranty expired in June and that 27 of the 42 snags raised are "cosmetic" and not covered by warranty (6 months after I emailed with the issues!). Persimmon have confirmed the warranty is valid until May next year and that they will complete the work on a snagging report but that it needs raised via the HA as per the policy but the HA are refusing to submit the jobs. I'm rather confused about the whole thing and making very little progress with the defects team at the HA so have raised a complaint with them which is now being investigated. To add to the confusion further, despite saying the warranty ran out in June, I've had an email from them today regarding an issue I submitted in July which Persimmon are attending to fix tomorrow.

I'm a little worried that this is going to effect my relationship with them long term and despite the issues I love my house and plan to staircase to 100% in time, I know my solictor advised they could repossess the property for rent arrears and anti social behaviour but I've read up on some horror stories and I'm a bit concerned that I'll end up getting evicted/the lease forfeited if I make too much of a fuss about the snags/lack of communication but equally the repairs are going to cost quite a bit of money to repair myself. 

Any thoughts or advice would be greatly appreciated!

eddddy

sherbetlemons said:

During my reservation appointment I was advised that because it was a new build, there was a 1 year warranty in place that ran from the time the HA bought the home (June 2023) and any defects would need reported to the HA who would then arrange repair with the housing developer (persimmon) and I signed a declaration to this effect.

Further along in the conveyancing process my solicitor mentioned that this was actually 2 years and I assumed following this clarification that everything was in order. 

What do you mean by "signed a declaration"? Do you mean you signed a reservation agreement?

It will almost certainly be your purchase contract (or lease) that counts, not the reservation agreement.

When your solicitor said you had a 2 year warranty, I imagine he/she was quoting your purchase contract (or lease).


So maybe a good way forward is to find the section in your purchase contract (or lease) that states a 2 year warranty, and send a copy to your HA.


(If you want, you can also mention that Persimmon confirmed that there is a 2 year warranty - but that's an aside. It's what your contract/lease says that's important.)

sherbetlemons

There’s nothing mentioned at all in either my contract or lease re: the warranty 

yes I signed the reservation agreement which stated one year. It wasn’t until further along in the conveyancing process that the 2 years came up.

i just worry if I shake thinks up too much with the HA they’re going to end up forfeiting the lease and I’ll get evicted (shouldn’t have read so many horror stories online!)

eddddy

sherbetlemons said:

There’s nothing mentioned at all in either my contract or lease re: the warranty 

yes I signed the reservation agreement which stated one year. It wasn’t until further along in the conveyancing process that the 2 years came up.

Can you clarify... you said "my solicitor mentioned that this was actually 2 years". What do you mean by "mentioned"? 

Do you mean he/she wrote that in a letter that he/she sent you?

Your solicitor wouldn't have written that there was a 2 year warranty, unless it said that in the contract or lease (unless the solicitor made a very negligent mistake).


And it's hard to believe that there is no mention of a warranty anywhere in the contract documentation or lease. Once again, your solicitor would have been very negligent, if he/she didn't notice that omission. 

Mildreds_Earrings

@sherbetlemonsI'm a bit concerned that I'll end up getting evicted/the lease forfeited if I make too much of a fuss about the snags/lack of communication but equally the repairs are going to cost quite a bit of money to repair myself.

Just to reassure you on this point, that no HA would forfeit the lease just because of a complaint. I work for a HA and we receive much harsher complaints than yours but we wouldn't dream of forfeiting a lease because the lease does not allow for that. Ask for the HA complaints policy and follow the procedure. Be polite and respectful, whilst explaining your position and be clear, let them know what you want and provide a timescale.

If you're worried about what the HA can and cannot do, read the lease that you signed, under 'Landlord Covenants' and 'Landlord Obligations'. Also read Tenant Obligations to see what you're responsible for. Your Solicitor should have explained all this to you before purchase. 

Try not to worry unduly. All the best in your new home. 

eddddy

sherbetlemons said:

i just worry if I shake thinks up too much with the HA they’re going to end up forfeiting the lease and I’ll get evicted (shouldn’t have read so many horror stories online!)

Just to emphasise - you don't get your lease forfeited for making a fuss. (English law isn't that barbaric.)


In simple terms, you can get your lease forfeited if you continuously breach your lease, and your freeholder tells you to stop breaching your lease, and then a court tells you to stop breaching your lease - but you ignore them and keep breaching your lease.

You're not planning to breach your lease, so that won't apply.



(There's an exception which applies if you have a high ground rent, and don't pay it for 3 months - but again, that doesn't apply to you.

But don't do something daft like refuse to pay your ground rent or service charge as a protest. Because that would be breaching your lease, and put you on the road towards having your lease forfeited.) 

HampshireH

You need to read your lease/paperwork which will state the defects period

It's unusual for shared owners to have a 2 year defects period. Not as unusual for outright owners to have one though.

Your solicitor may have wrongly advised you

sherbetlemons

Sorry, I'm so confused by everything I'm probably not making much sense! So I signed a load of paperwork during my reservation appointment with the housing association, one of the bits of paper mentioned the one year defects period.

Further along in the conveyancing process, my solicitor mentioned that new builds have a 2 year defect period not one.. This was on a phone call about some work that needed sorted on the property before completion, I probably should have got this in writing on reflection. Persimmon then also confirmed the same via email and the customer care team have said the warranty is 100% until May next year which is 2 years. I asked if that was still the same with shared ownership and they said all persimmon new builds come with 2 years. If Persimmon hadn't confirmed the warranty with me I'd assume my solicitor was mistaken or I'd got the wrong end of the stick. I've sent Persimmon's confirmation over to HA.

I've went through my lease and contract again and the defects period definitely isn't mentioned in either. The only paperwork I have with the defects period on is from my reservation appointment with the HA.

I just feel like I don't know whether I'm coming or going and I'm stuck between 2 companies saying different things. The snags that the HA are saying are cosmetic were raised back in March on handover of the keys so were well within the defects period even if it was only one year. I don't understand why it's taken them 6 months to advise some of the snags aren't covered and if this is even correct but then I also don't understand why, if they think the warranty expired in June, they have raised a problem that I reported in July that Persimmon have sent someone out for as that would technically be out of warranty.

Thanks for reassuring about the lease getting forfeited! Definitely not planning on stopping paying rent or anything silly like that. Like I say I love the property- I was just a bit worried about burning bridges with the HA. I've expressed my dissapointment at the lack of communication but not been rude or anything like that.

GixerKate

I think the two year defect period runs from when the property was bought which for shared ownerships I understand is when the HA bought the property not when the resident completes on the property.  On the estate where I live a number of the shared ownership residents had similar issues where they thought they had 2 years from moving in but it was 2 years from when HA got hold of it.  It turned out for one of my neighbours that he only had 4 months to report any snags!

sherbetlemons

Yes that makes sense and would tie in with what Persimmon have said- the HA bought the property beginning of June 2023 and Persimmon have the warranty expiring end of May 2025.

annetheman

Without having read the second post with more detail (so very sorry if I missed anything in there) just thought I'd share from my experience trying to use a NHBC warranty one year post-build completion through the HA.

Got absolutely nowhere. They do not care or don't have the capacity or don't know how to claim against the warranty. I went back and forth by email with the HA for about 6 months then decided to live with the 'quirks' for 3.5 years. Ended up fixing some myself, others I just got used to.

Warranty, as far as I can tell, is a marketing ploy, isn't actually worth trying to use. And it has nothing to do with your lease.

But good luck if you persevere!