FTB Shared Ownership

Mac_Sami

You may have noticed I've made a few posts in this forum about shared ownership, such as whether it's possible to make an offer on the asking price, and whether it's worthwhile doing.

I've considered the various (and very useful) comments from people, and have made the decision that I would like to buy a 40% share in a 2 bedroom new build flat. I've calculated that I can afford it financially, and working with a solicitor's firm has meant I've had some good advice on the various costs that will be incurred. I am not interested (in this topic anyway) about whether it is a good idea or not - my mind has been made up on that after research and reading. I hope that doesn't sound too harsh!

My next question is: can I, or more importantly, how do I, make an offer on the share? My offer will value the whole property at £15k less than it's market value of £170k i.e. a 40% share at £62k instead of their asking price of £68k. The figures for a larger share i.e. 50% simply do not add up in my situation at present.

I appreciate it is a buyer's market, and note that the SO flats have been on the market for over 6 months without a single one being sold. I also appreciate that just because there is talk of a downturn does not mean silly offers will be accepted - but I figure the best approach is to start with a low offer and work to my maximum of £65k.

I would appreciate any advice on what I've just said, and also how to make this offer - any tips when making the offer over the phone, or whether anyone else in the SO boat has successfully made an offer on a property.

Thanks.

Richard_Webster

I'd be fascinated to see how you get on. In my experience Housing Associations who typically sell these properties have a take it or leave it attitude. That's what it has been valued at and that's what we are selling it for (or a percentage of that amount) and that's that.

Trying to get them to NEGOTIATE could be asking the impossible - it is not something they do!

I may be very wrong here and if I am I'll be presently surprised, but they are not like estate agents and not very commercially minded...

poppy10_2

Mac_Sami wrote: »

have made the decision that I would like to buy a 40% share in a 2 bedroom new build flat.

No no no no no no
NO
NO!!!
Please, god, No!

Mac_Sami

Richard_Webster wrote: »

I'd be fascinated to see how you get on. In my experience Housing Associations who typically sell these properties have a take it or leave it attitude. That's what it has been valued at and that's what we are selling it for (or a percentage of that amount) and that's that.

Trying to get them to NEGOTIATE could be asking the impossible - it is not something they do!

I may be very wrong here and if I am I'll be presently surprised, but they are not like estate agents and not very commercially minded...

This is the feeling I'm getting, but I'm simply not willing to pay the asking price. If it's not going to happen then that's life and things go on (at least that's my attitude about these things). I'll be certain to let you know what happens!

Mac_Sami

poppy10 wrote: »

No no no no no no
NO
NO!!!
Please, god, No!

Clearly reading was high on your curriculum.

Sarcasm moment over.

fc123

poppy10 wrote: »

No no no no no no
NO
NO!!!
Please, god, No!

Go to the Panorama link on that thread and watch.
Part ownership etc etc..another con to keep prices artificially high.

Mac_Sami

fc123 wrote: »

Go to the Panorama link on that thread and watch.
Part ownership etc etc..another con to keep prices artificially high.

Absolutely. Perhaps I should have made things a little clearer. I'm always happy to hear people's concerns and thoughts about something, but as I stated before, not in this thread. I've asked questions about whether SO is worthwhile doing (check my other posts), and have learnt a lot from the opinions given. It's just that when someone starts shouting "no, no, no!" without really qualifying anything, it doesn't help me - or anyone else looking for more information about SO, so thank you for your suggestion.

lynzpower

I bought ( and sold) a SO flat.

I agree with Richard, I have never heard of any HA accepting offers on SO flats. Even with a major flood and 3 motnhs extra waiting they wouldnt even knock 1k off....

If you are not willing to pay what it is, then its artificially high.

Personally im concerned about SO stock in a falling market, I cant see why one would pay SXYZ when repos are through the roof, auctions and EAs are bursting with people willing to take low offers, and the market grinding to a halt everywhere. Youll get much better VFM outside of SO, and if its a new build, dig around at auction! see whats there

Mac_Sami

fc123 wrote: »

Go to the Panorama link on that thread and watch.
Part ownership etc etc..another con to keep prices artificially high.

Well, I just watched that programme, and it made no mention of part ownership being a way of keeping prices artificially high (unless I missed a bit). Granted, it shows how property prices are being incorrectly recorded on the Land Registry's register at a higher price than the actual sale price - but surely if you're purchasing a smaller share of a property, and making a low offer on that share, the risk is less? I could fully understand if someone said they were going to offer the asking price on a property or share - there would be serious cause for concern, and yes, prices appear to be going down. The way I see it is that it's all the more reason, if you're serious about buying your first home, to buy a share of the property. If prices plummett or even crash, your share will certainly go down in value, but the loss is far less. I mean, come on, you've got a South African woman there on £50k a year, yet she hasn't the brains to even see properties that she's spent over £1 million on? If you're going to be that stupid when it comes to serious property investment, sorry, but you deserve to lose. Just as being a landlord isn't an easy occupation, nor should property investment be. Sound, solid research is required - and I for one would never buy a property without looking at it.

Mac_Sami

lynzpower wrote: »

I bought ( and sold) a SO flat.

I agree with Richard, I have never heard of any HA accepting offers on SO flats. Even with a major flood and 3 motnhs extra waiting they wouldnt even knock 1k off....

If you are not willing to pay what it is, then its artificially high.

Personally im concerned about SO stock in a falling market, I cant see why one would pay SXYZ when repos are through the roof, auctions and EAs are bursting with people willing to take low offers, and the market grinding to a halt everywhere. Youll get much better VFM outside of SO, and if its a new build, dig around at auction! see whats there

Thanks - auctions are something I had considered, what with repossessions and all. I am concerned that the price for the SO is overvalued, so if they won't accept an offer (which seems unlikely), then I simply won't be purchasing.

Thanks for your comments.

brit1234

My mate found a drug addict chasing the dragon in the corridor of his shared ownership block last week. I was then asked by Hounslow council if I was still interested in their shared ownership properties.:eek: