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Our shared ownership dream home turned into a disaster
Mira Bar-Hillel, Property Correspondent8 Aug 2008
A couple who got on the property ladder through a shared ownership scheme have dismissed the concept as a disaster.
Special needs teacher Andrew Howard, 29, and his partner purchased a 40 per cent share of a new flat in Leytonstone from Newlon Housing Trust less than two years ago.
When he was offered a new job in Norfolk he thought it would be a straightforward process to sell the property and relocate.
But their experience of ownership and trying to sell has left the couple, who have a two-year-old daughter, in despair.
Mr Howard paid £79,000 for his share of the £195,000 two-bedroom flat, which carried a monthly rent and service charge of £347 until it shot up to £433 in April.
The couple's problems began shortly after they moved in. They included:
• Rubbish not collected for five weeks because of poor access to the bin sheds.
• A lift out of service for 11 days.
• A broken front door which had no handle and remained unsecured for nearly two weeks.
Mr Howard said: "We could not do any repairs ourselves because we were mostly tenants. When we complained, Newlon were invariably rude and unhelpful and treated us as though we were the problem."
Things became much worse when they asked about selling their share of the flat, thinking the trust would buy it.
"When we suggested this, Newlon refused point blank, claiming they had no money to do so," said Mr Howard.
He made a formal application to sell in April but discovered that under the terms of the lease he had to give the trust first option and up to eight weeks to resell the property, for which it would claim an agent's fee of 0.75 per cent.
Mr Howard had the flat cleaned and painted ready for viewings but heard nothing from Newlon for two weeks.
The couple were then contacted by valuers, to whom they were asked to pay £300 in addition to paying Newlon's £400 legal costs and for a home information pack.
By early June the trust had still not put the flat on the market and told Mr Howard the eight-week period when it had sole agency rights would only begin when it appeared on a website marketing shared ownership homes. Newlon also said it had a list of interested buyers but these never materialised, claimed Mr Howard. He added: "In July, after many fraught phone conversations, Newlon finally allowed us to use our own estate agents, who at least tried to market the flat properly. "But by then the market had gone flat and the holiday season had started."
The final blow came this week, when Newlon assistant director Sunita Parbhaka told Mr Howard she wanted to contact their mortgage lenders, Nationwide, to "find a way to help you".
According to Mr Howard, she said she wanted to discuss repossession of the flat even though the couple had never been in arrears. Mr Howard said: "I am appalled a charity which is meant to help people like us would want to force us into repossession and extract money from us at every turn."
He now considers shared ownership, the flagship of Labour and Tory affordable housing policies, a "scam". He said: "With shared ownership you have 100 per cent liability and zero per cent rights."
A Newlon spokesman said it had tried to help the couple. He added: "We have not failed in our obligations to the owners of the flat, nor have we threatened them with repossession. We sympathise with people finding it hard to sell their homes in the current housing market."
HOW THE HOUSING SCHEME WORKS
• Shared ownership was devised as a way of getting people with relatively limited equity on to the housing ladder.
• The occupant buys a percentage of a property - it must be a minimum of 25 per cent.
• The housing association or trust continues to own the rest of the property and the occupant pays rent to the association.
• The occupant also pays service charges for maintenance.
• The resident is not allowed to carry out maintenance themselves - the housing association is responsible for doing it.
Reader views (33)
We encouraged our daughter into shared ownership in a regeneration area of Birmingham 10 minutes walk from the city centre a few years ago. The sales brochure listed all the improvements that were planned for the area and we all thought she couldn't go wrong. None of the improvements to the area have been carried out the properties have crashed in value and nobody can sell their shared ownership because there is no demand. The only reason our daughter isn't in negative equity is because we gave her a huge deposit - that has all been lost. Now she wants to move because she is getting married and wants to buy a house with her partner. She has no equity, the area around the apartments is a dump in spite of all the promises, she can't sublet because of housing association rules, the housing association charges huge fees for selling - even though nobody wants to buy, the parking gates don't work and in spite of the service charges she pays there is always a job that needs doing. She is totally trapped with what she has in a poor area, there honestly seems to be no way out. NEVER believe what you are told by a housing association - they do not have the residents' interests at heart. NEVER believe promises that are made about improvements to an area. We asked the housing association if they would by back at a reduced price - they said no. The rules for resale are very restrictive - we don't see a way out of this at present.
- Helen, Birmingham, England, 06/12/2011 13:30
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A documentary on the pitfalls of shared ownership will only make it worse for existing tenants who are trying to sell their properties.
What is really needed is a reform in the laws surrounding shared ownership and tighter control by the government concerning where and how their funding is spent. Also some practical aid for those who have been affected by it, such as the government taking control of the housing associations shares of shared ownership properties.
These so called charities (housing associations) have for too long gotten away with taking advantage of vulnerable people, but in my opinion the real problem is that it is perfectly legal for them to do so.
My husband and I own 50% of a shared ownership property in Liverpool, with Riverside owning the remaining 50%. We moved out of our flat and into my parents house over 20mths ago as I was pregnant and the property is unsuitable for a child. Despite marketing the property at a very low price it still has not sold. When we asked if we could sublet given the circumstances we were told no. We if it would be possible if we staircased to 100% ownership. We were again told no and that we have signed up for those terms in our lease so we have to 'put up and shut up''. As far as I am concerned no landlord should be able to stop you letting your property when they do not own any of it and I am appalled that this is legal.
- Anon, Liverpool, 02/12/2011 09:28
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Hi there,
I'm working for the BBC1 programme Don't Get Done Get Dom, and trying to find new cases for our sixth series.
We are doing a programme on the pitfalls of shared ownership and what people should know before taking it up. To do this, we would like to hear from people who've had problems with shared ownership, particularly regarding service charges or problems when selling.
Get in contact with us at:
dom@flametv.co.uk
Best wishes,
Dom Team
- Don't Get Done, Get Dom, London, 14/10/2011 12:47
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I purchased a 50% share in a property just before the crash, and now I'm finding very difficult to sell my share. I need to sell as I now have 2 children and the 2 bed flat was fine when I was single or as a couple, as it was close to the city and work. However things change and we are now renting a property in the suburbs waiting to get our eldest into a school. We are looking to buy outright in the area we are currently living, so really need to sell off the flat to be able to get a new mortgage.
We have an agreement with both the Housing Ass and mortgage lender. This is only temporary though, and if we find ourselves not getting permission to continue sub-letting the property, then I'm not sure what our options will be. We do not want to purchase the remaining share, as the development is not selling very well, although they do rent very well. If I didn't have a young family to worry about this may be an option. Also due to the high price I paid I can't sell for a cheap price to get rid, as I would be left owing money to the bank. Not something I can afford when trying to buy our first family home. What other options are there? Walk away? Looked into this to see whether any money gained by auction/sale would go directly to the lender first, hopefully enough to cover outstanding loan, then to the Housing Ass. But can they then claim anything from me as well as the left over they may get for their 50%? Also how bad would this be for getting a new mortgage in the future?
- Rob, Manchester City, 19/09/2011 10:32
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My son and his partner bought a 30% share of a new 2 bed apartment in East Grinstead. At the time they had a baby, and unfortunately, they found they were pregnant with another child, which turned out to be twins. There are now 2 adults a 2 and a half year old and 2 8 month babies living in a small flat on the second floor, no lift - the apartment has dropped £35,000 in 18 months - which is a far bigger drop than any other property I know. They find it extremely difficult, claustrophobic and depressing and it is causing a strain on their relationship. They are now in negative equity with no way of moving. I work for a local council and the staff at Housing Associations I have contact with have told me they would certainly not recommend Shared Ownership to their own family. I have also heard that Housing Associations put the properties for sale at the maximum value they can - if this is so it is appalling. I am very concerned about how to get my son and his family out of this awful situation. There must be something someone can do to help them.
- Janis Trehearn, Croydon UK, 29/12/2010 19:42
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i am shocked to see how many people have suffered under the shared ownership. i bought my property through circle 33 and the same problems of increased service charge and rent has continued with very pooor services provided. i have tried to move to a bigger place butcircle 33 said they can not help me but sell my shares. they do not seem to have put the property on the market and when i contact them, they always say they are too busy.
- leah, barking and dagenham, 20/07/2010 23:17
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Biggest mistake of my life! I bought a 40% share of a property through Thames Valley Housing Association in 2005. After a couple of years, rent had gone up by almost £200 and service charges sky rocketed, for a very poor service. Due to personal circumstances I had to move to London, to which TVHA gave me permission to rent via the local council. The council tenants did not pay rent for close to a year, and after struggling to pay living expenses in London and Rent/Mortgage on the shared ownership property, I went into serious debt, as well as mortgage debt. TVHA have been extremely unhelpful in this situation. Not making it easy for me to sell my share of the property (the costs of which are ridiculous). I am now unemployed and left to deal with mortgage debt collectors' calls and harrassment from TVHA for their rent. I no longer have an attachment to this property and would love to see it go as it has caused me so much stress, but I am trapped.
- Marlise Marshall, Reading, 01/07/2010 12:01
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Me too, biggest mistake of my life wish I had read this four years ago. Desperately need to sell to move closer to a disabled relative, there are errors in the lease preventing me from selling and the housing association are taking their time to sort it out. Paying a fortune in service charges for poor service. Swan Housing are a waste of space.
- SR, London E14, 15/04/2010 13:58
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Very Interesting reading all the comments, only wish the info had been out there 2 years ago before I bought my 40% share. Rent and charges have jumped up by 75% in 2 years, flat has droped £40,000 in value, cant afford to increase my share, can afford to sell, and now paying more in combined rent and mortgage than I would have if I were privately renting....
Whatever anybody thinks, it is genuinely a mistake to get involved in shared ownership (even in a rising market) believe me!!
- Lewis, Southampton - England, 02/03/2010 10:28
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I bought a 1 bed flat as part-buy part-rent from Swan Housing Group nearly 3 years ago. What was promoted as 'affordable housing' and 'a way for young people to get their foot on the property' ladder has turned out to be one of the biggest mistakes i and every other resident in my development have made. Swan and our managing agent Peverals, continually ignore our complaints and issues. Our service charges have increased by over 100% since we moved in and have now become totally unaffordable to us. I cannot afford to live! They checked our earnings and financial situation when we applied for the property. I could afford to pay what they were asking then. But they have put it up so much that i am now in debt and struggling. That is aside from them adding on extra charges once actuals are released each year. The extra charges wouldnt be so hard to swallow if the services actually matched the cost but they arent even close!! I am disgusted that a government endorsed initiative can rip people off like this. My advice to anyone considering PB/PR (shared ownership) is to wait and save for a bigger deposit and buy outright!! I and the other residents in my block have no hope of selling our homes now, let alone be able to afford the extra 'hidden charges' to get Swan approved surveyors and pay for things they have decided are required to sell our homes.
- Holly C, Essex, UK, 02/02/2010 16:23
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2 years ago we bought 50% of our 3 bed semi for 70,000. the house next door to us got repossesed after the tennants did a runner and is now on he market for 76500 for 85% ownership, when i seen this i thought that since the value had fallen so much, now would be a good time to begin our staircasing, we'll never own 100% but we could own upto 85%, at which point we would pay no rent only service charge
right now we are paying more than 700 amonth inc our motgage and our rent, this is at least 2 -300 more than we were paying when we were renting, so it really has affected our finances. i have now found out that they do not take into account how MUCH we have paid already only the percaentgae so we would have to borrow a further 30000 to own 85%, add this to our mortgage and we would be in debt by more than the house is worth, any mortgage company worth their salt will just laugh us out the office, so in other words they have us over a barrel, so we have to keep paying their ridiculous rent amounts, which go up and up every year - and this is 'affordable housing' - its all a joke and one of my big regrets. We want to sell one day, i@m dreading it now!
- Rhian Kelly, Wrexham, N wales, 14/12/2009 11:54
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Oh my goodness, i am viewing a 1 bedroom apmt on sat 25% shared ownership scheme, I graduated last year and have been in my job a year, so cannot really afford to buy in open market, having read all of the above comments, i really am thinking twice about this scheme now. I always saw renting as 'dead money' but it looks like i would loose a lot if i went on this scheme. If i wanted to move in the future wow, it looks like it would be difficult. I do not understand mortgage lenders apr charges and fixed rares etc anyway. One shall stay with the folks and keep saving some more...lol
- Lisa Leonard, United Kingdom, 13/10/2009 19:21
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Hi, I have just bought on shared ownership. This was the only means of myself and girlfriend to get on the ladder. We are paying a good 450 cheaper than renting in that area. Our incomes are low but we still managed to get a 4.5% fixed rate. This was the only option for us. To be honest all the problems are down to lack of research and thought. In a falling climate you will obviously find it hard to sell property. Not only this but we have gone into this scheme planning on staircasing to 100%. I dont think anyone can say this is worse than renting as I am saving 450 per month to go on more equity.
as a long term I dont see this as an investment but a foot up. To me its less risk of neg equity if circumstances change i.e break up. If you go in to this thinking its an easy way then you will find problems every day.
as for the overpirced bit. Ours was on the market for 300,000. We got them to go down to 250,000 due to our independent survey we got and they accpepted as they knew we would pull out othwerwise. this is about 10% cheaper than all 2 beds in the area on the open market.
I think if you look at this as an easy way to own a home by still having the same rights as renting you will be in for a big awakening.
I also have friends who have bought and sold on this scheme and because they did thier research they have come out with no problems and quids in.
So I part own a 2 bed apartment right on the river in london next to canary wharf for 800pcm inclusive. Bad??!!
- Josh, London, 17/07/2009 07:15
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I too, am in a similar predicament to the other people commenting. After securing a good job in Norfolk I informed my housing trust (Metropolitan Homes) that I needed to sell my 40% share of my one bedroom flat. It has taken them 5 weeks to market the property, a valuation (for which I had to find and pay a surveyor) £15,000 below one estates agents valuation and £30,000 below a second estate agents valuation. They have sent only two people to view in the two weeks since marketing and I now have only 6 weeks till I take up my new post with NHS Norfolk. (I am a nurse)
Everyone recognises that selling a house is stressful but the 'don't care' attiutude of housing associations just makes the whole situation worse!
- Gillian, London, 16/07/2009 21:03
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I to am in the same situation trying to sell my 45% of shared ownership property to no success.
My rent and service charge has doubled it is just ridiculous! now in the predicament of taking it of the market to try and gain some equity as if we sold now we would loose so much, however have a baby on the way and need out!
Feel completely stuck in this flat, but had no where else to live and no deposit so had to go shared ownership! A2 Dominion housing association are also unhelpful, time wasters and money grabbers.
good luck to anyone trying to get out!
- Sarah, London, 09/07/2009 13:19
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We are trying to sell our 50% share of shared ownership flat. We went through the housing associations procedure and they failed to find a buyer for us, we were allowed to put it on the open market last October. In January we found a cash buyer for the 50% share who was declined for reasons we can't find out due to data protection! Three weeks ago we found another cash buyer who is also a council tenant at their current property - they have also been declined again for reasons we cannot find out due to data protection. What a joke.
We can't buy the other 50% share as the prices have dropped somewhat we now don't have enough equity as a deposit and we can't rent our flat out as we only own 50% and therefore are not allowed to sub-let....
This scheme is a farce and I would definitely not make the mistake of doing something like this ever again.
- Angela Cowan, Bournemouth, UK, 20/04/2009 18:59
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We were all set to purchase a shared ownership house but have just 'pulled out' due to the many problems we have encountered. The first being that the solicitors fees to purchase were £500 more than buying a standard property. Secondly we needed a 10% minimum deposit of our share and even with that there were only three mortgage lenders willing to offer a shared ownership mortgage. One of these being Abbey who wanted a £2500 product fee in advance which could not be added to the mortgage. The second being Halifax with a £995 fee and then an extortionate interest rate of 7%. The third Leeds building society who in comparison wanted a £199 non refundable booking fee, but a very high 7.89% apr.
On top of all of this we have found that shared ownership properties are leasehold and not freehold so even if we do 'staircase' to owning 100% of the house it will only be for the lease which will decrease the value of the property if we sold.
We have also found that the property is somewhat overpriced and they won't accept offers on the property, you have to pay what they consider to be the current market value.
We would be buying 45% of the property but would be responsible for 100% of repairs and any improvements we make would be out of our own money but the housing association would profit from this if we sold.
So we have decided to save up a bit longer and get a mortgage in the open market, with falling house prices as well I think it is best to wait before buying anyway.
- Lisa, Cornwall, 10/04/2009 09:44
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We are currently in the same position they expect 100% on time payment from you every month but when any repairs or maintenance needs carrying out we are expected to wait forever!we have 50% ownership and its the worse decision i ever made i would not recommend shared ownership to anyone especially not in my area anyway!
- Laura, Southampton, 04/11/2008 10:48
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I think that the Shared Ownership scheme is all a little dodgy.
We are trying to sell 45% of our property we have a buyer and eveything was about to go through, when the buyers mortgage company requested a mortgage protection clause and the council are refussing to add this in because it may open the flood gates for others, which is compeletly unecceptable, we are currently fighting this disision.
- Rebecca Stevens, london, 09/09/2008 18:02
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It seems to me they bought without proper legal advice. The govt. has tried to make buying property like buying cornflakes. Legal services are not a commodity as such. With proper time spent on reviewing the documents and reporting to the client they would have been fully aware of the position. As the cost of conveyancing is forced so low then detailed advice will be hard to give. People need to respect the law and those that try and explain it.
- Simon - Bucharest, bucharest - Romania, 09/09/2008 17:02
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I know this young man, and he won't be exaggerating: very sorry to hear of his predicament.Is he not allowed a neutral evaluation of a fair rent and service charge? If not, the question of unfair contract terms could come into play. Now that housing associations handle such huge sums of money they are money-pots that attract just as ruthless characters and practices as the private sector. It seems that the landlord can impose service charges at will: these seem as bad as the notorious exploitation that used to exist on caravan sites.
We should all beware governments that come bearing gifts: they make more out of us as home-owners (CGT, Stamp Duty, VAT on fees )than as tenants.Another dubious concept is the key-worker home, which is basically a modern take on the tied cottage. And it's funny, isn't it, how key jobs don't seem to exist in the private sector? I read lately of someone very happy in his new key-worker flat in Haggerston: but if he gets a job in the private sector, even if it's the same kind of work, he's on his bike!
- Mdj, Leyton, London, 09/09/2008 17:02
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I had a shared ownership flat for 10 years and it's been a nightmare. I only found out afterwards the original building contractors had gone bankrupt and so the association found another firm to complete the building quickly - they did a shoddy job and we have had problems since. The new building guarantee is a waste of paper and we have been involved in arguments since on where the responsibility lies.
The building has moved so we have huge cracks in most flats, leaking roofs etc. We have had the same contractors come and 'fix' the problems three time and still problems keep coming back. We tried to get another contractor in but the housing association said we had to use contractors on their approved list. We were then given three estimates - 50,000 ,150,000 and 200,000 so we were forced to go for their "favorite" company yet again. This flat was the worst financial decision I have ever made in my life. This scheme was for people who could not afford to buy on the free market but yet we have ended up with a flat that is hard to sell and costing thousands in remedial work. It's awful. If you are thinking housing association be careful because you get to pay the bills without any control of how the money is spent. Also don't assume because the house is built by the association that it will be well built. Ours has major structural problems and 10 years down the line we are still trying to sort things out.
- Irene, London, 09/09/2008 17:02
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At last, Newlon have been 'outed'. I have been living with rats in my flat for months now, and I have a mortgage on my Newlon property. There are serious defects in the building and I have been fighting with them for a long time to carry out repairs. We now have a residents association, but it doesn't seem to matter how loud I shout, they don't listen.
- Lisa Burns, Walthamstow, 09/09/2008 17:02
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I think the people who have commented before are missing the point. There are certainly downsides to shared ownership, in that generally the outgoings for mortgage plus rent are not hugely different from having just a pure mortgage. The advantage is that it is looked on more favourably by banks because they have first rights to any monies in the event of default; therefore, they are more willing to lend the money. In this risk adverse market, this is a distinct advantage. Whilst my experience of shared ownership was positive due to the nature of the market at the time, which gave me the equity to purchase a property outright, I think people are missing the point. In any housing situation, you might be subject to a downturn, making it harder to move when you wish to, however whilst all economists are pointing towards a continued fall in the housing market into 2009, longer term they are expecting housing to continue to climb, meaning it is still a good investment for those able to weather the storm. It is better to be on the ladder than not, when the upturn finally starts. The article above is not that shared ownership is bad; it is just some housing associations seem shoddy.
- John, London, 09/09/2008 17:02
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Shared ownership is a minefield. I've had a great house for ten years through it but the Housing Association refused to honour the guarantee on the building when I moved in and huge defects were found. I had to pay myself to put the problems right and then employ a solicitor to get my money back. As the man says above you have all the responsibility but none of the rights.
Now my rent goes up and up, I can't buy out any more shares and when I got a valuation to try I was told by the Borough surveyor that there were two prices, one for if I'm buying and one for if I'm selling. When I bought the place I was told I could sell my share for the going market value, now there are two versions of it depending on if I'm buying or selling? The Borough surveyor would not tell me why there were two or which was higher.
Like Mr Howard above I have to give the Association first opportunity to supply a purchaser when I want to sell. I am very worried about the whole thing.
I think there needs to be some independent body who can give real legal advice to shared ownership buyers and defend them against unfair practices to make sure they are not being ripped off. But in this day and age all such bodies are big on talk but don't actually do anything.
- Rhd, London UK, 09/09/2008 17:02
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I've been living in a shared-ownership house for some 20 years. It's a terraced house with a garden and a secure parking space. Although the mortgage has been long paid off, I'm still liable for the rent on the 50% I don't own plus maintenance and management fees.
The trouble is that the HO, which is based in Hammersmith, couldn't organize a booze in a brewery, specially due to their very high staff turnover. And whenever there is a problem with the building, it's always got to do with someone else, despite paying the HO substantial amounts of money.
I have no doubt that most of the money I pay the HO goes toward their luxury offices, they diversity officers and other idiotic PC schemes in addition to gold plated pensions, all in the very best ZanuLab tradition.
- John Smith, London, UK, 09/09/2008 17:02
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Everyone is suffering from the market 'falling flat' in the current climate and shared-ownerships sellers are in the same boat as the rest of us when it comes to selling their property.
Did this couple bother to read their contract and go through the full legal procedures that a housing association would no doubt advise? Or did they view it in the same way they might a tenancy? I do not think Newlon are entirely to blame for much more than some rather poor customer service.
Shared ownership properties exist to help those on moderate incomes struggling to get onto the housing ladder and should rightly be kept in this sector if possible, so of course Newlon should have first refusal over selling this property onto someone on the waiting list.
What appals me about this example is that Newlon doesn't have the systems in place to react quickly enough to begin marketing a property to their own waiting list within the eight-week window of opportunity. The couple are now able to go to their own estate agents and sell on the open market - what a waste.
Oh, and did I mention that the shared owners will get to keep any increase to the value of the share they own in the property once it is sold? So being 'mostly tenants' is not 'entirely disadvantageous'...
- Nicola Miller, Ealing, UK, 09/09/2008 17:02
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So who exactly is the Government's "Regulator" when it comes to regulating the often questionable operating systems of "Housing Associations" and other "Social Housing" businesses?
- Fraser, Telford Park, 09/09/2008 17:02
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I sympathise with the people in the article.
The shared-ownership scheme has been around for years and the Government are always attempting to promote it, it's a way of getting people off council waiting lists.
I have lived in a shared-ownership property for 15 years and I would never recommend it to anyone, in fact I would advise people to think very, very carefully before taking part. My housing association owns the larger percentage of the house, but do not pay a penny towards the upkeep, as a 'home owner' I am expected to do this myself. There are lots of pitfalls with these schemes so my advice is "buyer beware"! I
- Aji, London, 09/09/2008 17:02
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Ryan Haert, instead of attacking Mr Howard, you ought direct your fire at the politically appointed Socialist sewer rats in charge of these Housing Associations. If these were not a bunch of self-serving politically correct spivs on vast salaries and expense accounts to match , there would not be so many problems with shared-ownership.
Financially illiterate are those people who having borrowed 10x their income, now they are having their houses repossessed. I paid off my mortgage in just 10.5 years and the rent I pay on the bit I don't own wouldn't even cover the cost of a shed in the area where I live in West London.
What we need are some proper reforms, hopefully from the next government,where the buyers are protected, in addition to having the maggots in charge of these schemes thrown behind bars.
- John Smith, London, UK, 09/09/2008 17:02
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I have no sympathy for these people. Any person with half a brain-cell can see that it is a ridiculous idea to buy 40% of a property and rent the remainder. It is the worst of both worlds - all the downsides of renting and owning and none of the advantages of renting, such as flexibility. But no doubt Mr. Howard was guided by greed and the irrational need to "get on the housing ladder". The problem with these people is that they are financially illiterate and have no concept of the risks they are taking on. People like that should should just rent.
- Ryan Haert, London, 09/09/2008 17:02
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Never been able to get my head around shared-ownership.
You should either own outright - or rent.
Shared-ownership looks like very expensive renting to me, and locks you down if you want to move, especially in a falling market.
- David S, Manchester, 09/09/2008 17:02
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I had a very, very similar experience with a shared ownership flat in Stepney, this time with Spitalfields Housing Association.
I informed them that I needed to put up my flat (of which I owned half) for sale, as my partner was 3 months pregnant and the flat was a tiny one bedroom studio. I made it very clear of the urgency of this move and of the reasons. One year to the day exactly of when they received my official request I finally moved.
They were incompetent and uninterested beyond belief. Something like 4 months went by without the flat 'officially' going on sale - and they held me to their 3 month resell rule too. After 6 months they made me get and pay for a second valuation, as due to their own rules after 6 months a valuation is out of date (despite all the delays being their fault).
At every possible stage they messed things up and caused my family and others further up the chain unbelievable stress and anxiety - they didn't seem to care one bit.
The first six months of my babys life were spent in a shoebox, so would I recommend a shared ownership now?
Not a chance.
- Jason, London, 09/09/2008 17:02
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