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Nabby81

Premiums On Shared Ownership

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Looking through some homes on Rightmove I often come across shared ownership I find listings like this

http://www.rightmove.co.uk/property-for-sale/property-57455012.html

T

The Housing Association is Milton Keynes Council and the price excludes a £20,000 premium.

Am I correct in saying they want 220k for this place full value and then another £20k on top of this ? What exactly is this Premium for ?

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Am I correct in saying they want 220k for this place full value and then another £20k on top of this ? What exactly is this Premium for ?

Essentially. To buy 50% they are asking £130k.

The premium comes from the fact that when bought, the property was a bare shell.

The tenant has improved the property, perhaps by adding carpets or paint, light fittings etc. They do not want the uplift in value going to the co-owner.

Hence a low price representing the shell of the building, and a premium for the improvements payable to the tenant.

Looking at that place, it is clear that the £20k is a piss take.

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