Letting a “shared” property? [buying a property] [quot]

Q: Hi all

Been to look into the purchase of a property which is a share of 50%.

Can shared houses are rented out to tenants and there are usually rules and regulations to prevent?

cheers


A:Wardlaw,

Obviously, SO is designed to help people buy their first home – and indeed it would appear that the OP is asking about buying Shared Ownership WITH THE PRIMARY INTENTION OF letting it. This, as you say (and as I said earlier in the thread) defeats the object of SO.

However, one of the principal downsides of SO (one that I considered carefully prior to buying my SO place) is that you are tied to it more than a full owner is. Because if for example you need to work away for a year (as in guy's example) you potentially face a choice between having to pay for two properties simultaneously (your rent/mortgage on the SO, and paying for wherever you are living temporarily) or having to sell up for the sake of a short time living away from your usual town of residence, and being unable to reaccess the property market when you return.

I do think that HAs should be prepared to consider flexibility in such circumstances. I do not know whether mine would be, as living elsewhere doesn't figure in my plans – I am 99% certain that I wish to remain in London for many years to come.

But as you say, the OP would seem to be looking simply for a money making opportunity – which wouldn't be allowed.


A:The whole idea of SP is to help people get on the housing ladder

To request if it is possible to now let it out goes against all the principles of shared ownership, and shows complete selfishness to others struggling

Why should some body profit from such a scheme

This is a ludicrous question


A:my HA wouldnt let me sublet at all until Id bought 100%

If they found out I had sublet, then they would take steps to reposess immieidatley as it is in direct contravention to the terms of the lease.


A:I know my HA (Midsummer) won't let me unless special cicumstances e.g. working away for 1 year and then returning or smoething like that.

A:Usually shared ownership properties state in the lease that subletting is not permitted (until such time as the property is owned in full) – the reason being that the whole point of such schemes is to provide a supply of affordable homes for owner-occupiers, not cheap buy-to-lets for opportunists.

A:Ive seen a few local that people have done this, not sure if they bought the place in full though.

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