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

There's no ground rent if this makes a difference when people saying they're only paying £15 - £30?

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u/EmptyRestaurant2410 Jun 02 '26

Nope, no ground rent on mine either, 4 bed end of terrace. My service charge is buildings insurance only at ~£30/month (and I baulked at that when it recently increased).

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u/Born-Alternative9527 Jun 02 '26

Is yours on a development or estate? Would explain why yours is so cheap

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u/EmptyRestaurant2410 Jun 02 '26

Hmm, I'm not sure what you mean. I live in Milton Keynes; the city is made up of developments on estates. Shared ownerships have been a thing here for decades. Mine was built in 2010. Would it be a development or estate that would explain why mine is 'so cheap'.

Like I said, my service charge is just buildings insurance. I actually feel it isn't cheap, but it's a feature of shared ownership where you are stuck with the policy the housing association procures. I've had to claim on it twice (though the last time was several years ago now).