Flat outright or house shared ownership - Help!

[Houseorflat]

2 kids. Not a garden person. Have lived in flats and houses.

If you were us would you buy a large flat outright own front door and communal garden plus parking in good area OR 30% shared ownership new build house with garden on a new busy estate with parking in same area.

@SheepandCow

I'm not sure what happens with shared ownership if you can't work? If you get made redundant or become ill. Perhaps there's some kind of insurance?

Things might've changed now but I remember reading about someone who lost their job and ended up having the shared ownership property repossessed because of rent arrears - and as a result they lost the deposit they'd put into it. They got housing benefit towards the rent part but it fell short of the full rent. It's a worst case scenario but worth making sure you've protected against. If you do go ahead with it.

I think I remember that case, was it that there was no mortgage on the part they owned, so without the bank having an interest in the property it was able to be repossessed for rent arrears, but wouldn't have happened had there been a mortgage?

Could you do H2B on a different house? That would be my ideal.

I would never buy a leasehold house. Get the flat. Is there a chance of getting share of freehold with either? Be really careful about things like ground rent, especially on the house. I hope it doesn’t say it doubles every ten years. It will become unsellable.

@Houseorflat it may not be possible to buy a flat at the moment. Most lenders are requiring an EWS1 certificate. If you have a google or search on Twitter, you will learn a lot! Please, before you pay any solicitors fees or any outlay (if you decide to buy a flat) make sure the building has an EWS1 certificate. In my experience, I would not even get involved with one where the certificate is "pending". Google cladding scandal/EWS1 certificate for info.

[quote GotAnyGrapes17]@Houseorflat it may not be possible to buy a flat at the moment. Most lenders are requiring an EWS1 certificate. If you have a google or search on Twitter, you will learn a lot! Please, before you pay any solicitors fees or any outlay (if you decide to buy a flat) make sure the building has an EWS1 certificate. In my experience, I would not even get involved with one where the certificate is "pending". Google cladding scandal/EWS1 certificate for info. [/quote]
That is a very good point.

@GotAnyGrapes17 THANK YOU for highlighting this! Reading into it now.
Anyone else have any knowledge of EWS1?

Thanks for all your input

@GotAnyGrapes17 I’m a bit confused. Is EWS1 just for high rise flats? The one I would be buying is 3 storey

@Houseorflat it is really confusing, and I work in housing and have picked up a reasonable amount of knowledge in a short space of time about this.

EWS1 certificates are not just for high rise buildings. It is very hard to pin point what it is that makes a building under 18m need one, but a lot do, and a lot of people are caught up in this that never thought they would be. Ultimately, with low rise buildings, it seems to depend on the mortgage lender and if they are requesting one.

If your lender does request one, for a 3 floor building, it may take the freeholder some time to obtain one as it may be a low risk building. I know some leaseholders have being advised up to 6 years.

More importantly, it has not been confirmed that leaseholders will not be charged for any remedial works that need doing.

@Houseorflat so just had a bit more of a look for you. 3 floors maybe fine, providing there are no "additional" risks, this may be a food takeaway shop with a kitchen in the building. But please do not take my advice, look into it further, have a chat with your provider.

Thanks very much @GotAnyGrapes17
Was also reading last night at it was talking about a lot of uncertainty due to delays as not enough people qualified to sign off the cert plus the very only valid for 5 years so could again cause problems when coming to sell.
This particular block of flats is low risk in terms of only 6 flats in building and is ‘standard construction’ but this issue is now making me very cautious so thanks for highlighting

Definitely flat with outright ownership. Much less risk.

@Houseorflat no problems. I was on a call this morning and have been told that there is only just over 200 surveyors that can carry out the required inspections to produce EWS1 (in the entire country).

I am not normally an advocate for shared ownership, but from a personal opinion I would not be getting involved in flats at the moment. I do think the government will have to step in, as it will start to filter down and affect the property market as people can't get out of flats to move into family homes. At the moment I have heard large organisations predicting it could take 6-10 years to get out from under it.

Your flat does sound very low risk, and may well not be affected, but there are literally 100s of stories where people thought they would not be affected that are now trapped in a flat valued at £0, and even once there are a plan of works for adjustments could be facing huge remedial costs.

I always thought I wouldn't choose a flat over a house, but in this situation I would opt for the flat.

Me too.

I was looking into the EWS1 certificate as well, and it was suggested that even flats that were converted from a house, just two flats, could also be affected by the need for a certificate.

Definitely flat over a leasehold house.