Property News · April 9, 2018

Housing association charges 100% fees for selling a shared-ownership flat


My daughter owns 40% of the flat so surely her association should charge her fees based on her share?Q Two years ago, my daughter and her partner bought a 40% share in a shared-ownership housing association flat in Hackney, east London. Her company is relocating so they are having to sell their share. Buying this way was their only option in London to get on the property ladder as is the case with many young people. My question relates to the marketing costs the housing association is allowed to charge for their services when the share is sold. Of course it is reasonable that the seller should pick up the bill for the housing association’s legal fees as the sellers started the selling process. But surely the housing association should not be allowed to charge their percentage marketing fee on the full value of the flat rather than on the sellers’ share? In my daughter’s case the flat is valued at £590,000 meaning that her 40% share is worth £280,000. But the housing association says that if it finds a new buyer it will charge a marketing fee of 1.25% of the full valuation of £590,000, which would mean a fee of £7,375 which seems like daylight robbery to me. If it was charged on the value of my daughter’s share the marketing fee would be only £3,500. PC Continue reading…

Source : theguardian.com
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