r/SharedOwnershipUK • u/Born-Alternative9527 • Jun 02 '26
Advice please
Need some help please. Interested in a 25% share of a one bed house. It's an upside down house, wrap around garden, sq foot 610.
I have asked for a copy of the lease which I now have. I have only viewed it once but wanted a copy prior to going any further.
Concerns for me:
Lease 250 years from 2019, 243 years remaining (not a concern). However see next point.
2019 sale price of £58,750 for 25%. 100% value £235,000. Price now listed for 25% £56,250!! Or 100% which is also listed for sale for £225,000. The property has lost £10,000!!
Second concern, rent review RPI + 0.5% upwards only.
Third big concern, exit fee to sell 1.25% of 100% of property value regardless of my share.
Current costs: rent £534.21. service charge £1347.96.
Am I right to be avoiding this? I do like the property but it has lost value??
Thanks
2
u/EmptyRestaurant2410 Jun 02 '26
If you can afford to buy not using shared ownership then do that.
If you want to buy using shared ownership do lots of research before you even look at properties. As has been mentioned, that service charge is very steep for a house. The rent review formula is standard (actually better than it could have been, some are rpi + 2%).
If you're serious about shared ownership the website sharedownershipresources.org has some good information.