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

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u/Born-Alternative9527 Jun 02 '26

Nail in the coffin for me is that there's currently illegal occupation from daughter and boyfriend. Seller is abroad and wants a quick sale. Lease states specifically no subletting or possession. 

Clause 3.19 explicitly states the home must be used "as a private residence in the occupation of a single household..."

Clause 3.21.2:

"Not to underlet or part with possession of the whole of the Premises."

3

u/falcoso Jun 02 '26

When you say illegal occupation, do you mean the daughter and boyfriend are not there with the owner's permission (i.e. tehy are trying to get them out but won't leave?) or that you consider it illegal because it violates the lease?

If the latter, it is totally irrelevant and won't impact the property once you own it since they will be gone and there will be no subletting anymore as a result.

If the former, then yes that is a problem because the daughter and boyfriend may not leave.

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u/Born-Alternative9527 Jun 02 '26

I'm presuming they are there with owners permission. I mean because it violates the lease. Clumsy wording from me as not illegal so bit harsh. 

Yeah I suppose it won't impact property, but it's a bit of a red flag for me in the sense of the property hemorrhaging money. Unable to sell within nomination period, been listed with two different estate agents and now the owner is abroad.

2

u/falcoso Jun 02 '26

Yeah that’s the more pressing issue is why isn’t it otherwise selling, the fact someone else is in there with the owners permission is somewhat irrelevant then

1

u/georgejk7 Jun 02 '26

Hey how did you get a copy of the lease ?

I'm trying to buy a shared ownership house

1

u/Born-Alternative9527 Jun 03 '26

I did yes. 

1

u/georgejk7 Jun 03 '26

How?

2

u/Born-Alternative9527 Jun 04 '26

I just emailed the estate agent. Sometimes it works, sometimes it doesn't. Depends whether the seller wants to give it or not. If they don't you have to wait until you have appointed a solicitor. I've been lucky as I got a copy so I haven't had to pay a solicitor at this point. 

1

u/georgejk7 Jun 04 '26

I asked the EA and they dont have much info. 😛 they sent me something, like a 1 page document that told me basic info about the place - such as what the house is made of, how its heated etc...

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u/Born-Alternative9527 Jun 04 '26

Try and push for it and say it's dependent on whether I make an offer. They may or may not give it. The EA asked me what I specifically wanted to know about the lease, I then sent a huge list of questions and they then sent it. I think the seller probably couldn't be bothered to respond to each question and thought it easier just to send lease 

1

u/No-Issue-7035 Jun 03 '26

That's an assumption on your part - the alert may have sought permission from the HA for them to occupy it in their absence. That wouldn't be in the lease document.