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Flexible/Shared Ownership

2 replies

Myal · 05/02/2021 22:44

Looking for any stories for people that may have some experience in Flexible Ownership of a council property.

My DH and I took redundancies last year, whilst I'm still looking for a job, DH has secured a good income. Along with some money left from the packages, my MIL has offered us a gift of £200k to help buy our council property.
It's a 2 bed flat in a central London, desirable area and we put an application for RTB in last year which has valued the flat at £600k minus the full discount so the offer has been made at £487,700.

We can't afford that so we looking at buying a share of 40%.

We have a DD3 and our intention was to always leave central London by the time she needs secondary school.

So, the plan was to buy now, sell in around 6 years by which time we won't have to pay the discount back.
This was all based on RTB. But, I'm at a loss as to how straightforward the flexible share process is. I can't get through to anyone to ask advice as the scheme is run by my council (Westminster) and it's taking around a week to even ask someone to email me back.

Before going to solicitors, has anyone been through this? Any success or horrow stories to report?

For reference, it's a new build 2 bed but in a listed building that has been refurbished. It's by Paddington so crossrail is due completion next year too.

Thank you!

OP posts:
ComtesseDeSpair · 06/02/2021 00:06

I believe only Westminster and Camden offer Flexible Ownership and both only relatively recently. AFAIK the discount is also only available on the share you buy rather than the whole property, so if you buy a 40% share you’ll be entitled to 40% of the total discount, which means you may not be able to afford as much as a 40% share.

You’ll need to take legal advice on whether it’s the right option for you and whether your share will be easy or difficult to sell on when you decide to sell.

Myal · 06/02/2021 00:15

Thank you @ComtesseDeSpair.
The shares are broken down using the full purchase price of £487,700 so 40% has been offered at £195, 080.
I've got the solicitors appointment next week so will ask all the questions. Just can't seem to find more by looking online but if it is just Westminster and Camden, that would make sense.
The RTB advice organisation couldn't help me today, in fact they didnt even seem to think I could get the discount applied to flexible ownership.
Thanks for taking the time.out to reply though 🙏🏽

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