Paradigm Shared Ownership

[Aaron Lilley]

Hi All

 

I have been living in my shared ownership property since July 2008. I have a property where I can only own 80% of the property. I pay rent on the remaining 20% and this rent is based on the unowned %. I can never own 100% so will always be resoponsible for at least 20% rent. That rent always every year goes up by by inflation (RPI) plus .5%.

 

This 80% max ownership was put in the lease due to the local council planning restrictions. However each year the property is dropping in value and I am responsible for 100% repairs.

 

Is anyone else in this position and does anyone who if there is a way of buying the whole thing so I am not liable for the remaining rent, which could in theory become more than renting a private rented property.

OR Even a way of getting out of the lease if the rent becomes too expensive (Even if it means handing it back to them and I loose all that was invested)

 

Every time I try to comunicate with them the atitude I get is "YOU SIGHNED THE LEASE" and that I should have looked ito the finer details with my solicitor and asked more questions.

 

Any information or similar stories from people that have found themselves in a similar situation would be usefull.

 

Also note that I do not think this issue is isolated to Paradgim.

 

Many Thanks

Edited January 13, 2013 by Aaron Lilley

[stu007]

Hi

 

Very interesting what you have been told as Paradigm website says differently on Shared Ownership: http://www.paradigmhousing.co.uk/customer-zone/homeowners/shared-ownership/

 

Now Please have a good read of these PDFs and remember the advice you were given:

 

In the Paradigm - Shared Ownership PDF look at the section 'Buying more Shares in your Home'.

 

In the Paradigm - Guide to Shared Ownership PDF look at Page 4 and 5.

[Aaron Lilley]

Thanks for your reply.

 

Unfortunately I was told about the 80% maximium share when sold it but it was not made clear to me the full consequences of that (That is proberly down to my solicitor). Things like:

1. They intend to impose the RPI +.5 rent increase every single year regardless of what effect that would have on my rent in relation to the open market. I was lead to beleive that was a MAXIMIUM increase and that comon sense would prevail when deciding new rents each year.

2. If the RPI index is a negative they will still increase rent by .5%

3. There is no way of getting out of the lease (Even if it meant hading the whole thing back to them and me loosing the entire 40% price I paid for my share)

 

I am effectively at their mercy with regard to the bit I can never own as my choices are:

1. Pay the rent

2. Atempt to sell. However whoever buys inherits the agreement including the rent and rent increases. I cant imagine anyone wanting to take on this type of agreement.

3. Go bankrupt

I cant even rent the property out to someone else.

 

I never realised how restricted my choices would be in this situation. However I supose its my own fault for not looking into the finer details before buying.

[stu007]

Hi

 

IMO I can see no harm in writing to them (always get proof of posting) and ask if their is any reasonable possibility that would be able to purchase the final 20% share of your property and the likely costs.

 

Then wait and see what they say.

[Aaron Lilley]

Thanks again.

 

Unfortunately I have spent the last 6 months fighting this out with them.

 

I have resighned myself to the fact there is nothing I can do about it (I should have been more carefull when purchasing) However it does not stop me from making as many people as posible aware of what can happen so they do not fall into the same trap.

 

Beilive it or not, these schemes are government aproved, There was nothing my local MP could do for me, accept give me the advice to go to a solicitor. There maybie some law that can be utilised in these situations as I am sure I am not the only person with this issue.

 

One day I am sure these leases will be challenged in court.

 

Luckely I am realy pleased with where I live and most of the neighbours in the block which is the important positive thing to hold on to.

Edited January 13, 2013 by Aaron Lilley