Stuck in a shared ownership nightmare

stuckinarut26

Hi

My late aunt died more than three years ago and left her flat to myself and 5 other beneficiaries. I was designated executor, along with my brother and mum. The flat is a two bed in a retirement block and is shared ownership (75/25 in our favour).

We have had no luck with selling the property for more than three years and are accruing service fees at the rate of about £1,000 a month. We have changed estate agents a few times and have reduced the asking price by over 50% from its initial (not ridiculous) price.

The home have said they will not buy it back from us and, due to the conditions of the original lease, we cannot put it out to auction.

I'd estimate that we have another 12 months or so before the outstanding charges overtake any money from the sale. Does anyone have any ideas or suggestions as to what we can do?

Jemma01

What's the 1k for? Is the property currently empty? Can you challenge that amount with the home? Can you rent it?

You need to consult a solicitor who specialises in shared ownership to review the terms of the contract. It seems pointless to wait another year on top of the 3 years already

stuckinarut26

The £1k is for maintenance and insurance of common parts of the building. Unfortunately it's part of the lease terms so we can't challenge it. We can't rent as there are numerous eligibility conditions to living in the home.

I know getting a solicitor to check the contract would be the best option but I've already personally spent £4k on it and I just don't have the money to pay for a solicitor.

Jemma01

https://forums.moneysavingexpert.com/discussion/comment/82098305#Comment_82098305

sorry to hear that. What about the other ppl involved? Don't they feel the pressure too? Can they all contribute?

silvercar

Do the estate agents offer any guidance why it hasn’t sold?

What is in the original lease that prevents it being auctioned? Auctions are the usual place for properties with difficult leases to sell.

How have other properties in the block been sold?

Brie

Any chance the council or a housing association might be interested in it so they can find a suitable rental candidate?

stuckinarut26

Thanks for the responses.

@Jemma01 - my mum's in her 80s and doesn't have a penny to her name. My brother's not much better off so I've taken on most of the stress!

@silvercar - the estate agents just say they're as confused as me as to why it hasn't had any interest. The lease doesn't allow for auctions as potential buyer's have to be vetted for suitability. No idea how other flats have been sold (although they definitely have been).

@brie - it's already run by a housing association. I've asked them to consider buying it back but they're not interested. They don't allow the properties to be rented. It's a terrible lease but I never saw it when my aunt bought the place.

Baldytyke88

£1,000 a month is a massive amount, does that include council tax, my council tax is around £1,500 per year.

Maybe if you put a link to the property, you would get more detailed advice.

maman

We have a Mccarthy and Stone development near here and people are renting them because they are aware that buying them can leave relatives in precisely your predicament. So, might it be possible to rent to elderly people who do fulfill the eligibility conditions?🤔

Herzlos

Is there a breakdown of what that £1k/month is for? That's an enormous amount for maintenance.

Also what's actually in the contract for it, regarding the rates?

What happens if you don't pay? If it's results in forfeiture of the flat then you might be better just stopping payments and letting them take it.

silvercar

You need to find, from Zoopla house prices or the Land registry, what price was paid for other properties. Then market accordingly.

Have you been paying the maintenance in the expectation of being paid back from the estate or is that a debt mounting up?