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Shared Ownership pre-emption clause

1 reply

avalanching · 17/06/2019 13:18

Looking for help for a friend. She is buying a house that was built 10 years ago and sold as shared ownership with a housing association. She is buying 100% of the property, with a mortgage. It will be freehold (it was leasehold while under shared ownership). The issue, is that the pre-emption clause to the Housing Association lasts another 20 years. This means first offering the house back to the HA as and when she decides to sell, if they don't want it, it is sold on as normal, as is happening now (with pre-emption attached). It would be bought for the open market price (however that is worked out?)

She is really concerned that this is a bad investment, it is unusual for a pre-emption clause to be so long apparently. Her conveyancer isn't being terribly helpful. She is worried it'll affect the value, and is looking into a private valuation.

Does anyone have any experience of this? She is very concerned but the Estate Agent (who did not tell her about this clause) and conveyancer are being quite blase, the mortgage company aren't concerned.

OP posts:
fiorentina · 17/06/2019 21:31

When we sold our shared ownership property they valued it based on the average of 3 estate agent valuations. I’d hope they’d do the same for her.

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