The Prolonged Wait: The Financial and Psychological Consequences of Selling a Shared Ownership Property in the UK

Ads

The process of selling a property in the UK can sometimes seem endless, especially when it comes to shared ownership properties. For people like Simon Wood, a 65-year-old Somerset grandfather, this prolonged wait has serious financial and psychological consequences. Having had to sell his house due to rising mortgage rates, Simon now finds himself in an increasingly difficult situation every day that the sale drags on.

Six months ago, I was forced to sell my house due to the doubling of my adjustable rate mortgage. At age 65, it was impossible to find another mortgage, and long-term renting was too expensive. So my only choice was to sell my house.

I originally bought my flat for £165,000 and sold it for £180,000, meaning I will have a little extra cash. My plan was to use this money to buy an RV and live in it, mortgage-free, to escape this financial burden (and improve my declining mental health).

However, it’s now been six months since I accepted an offer on my apartment, and I’m no closer to getting out of it. I continue to pay my mortgage, without knowing when I will actually be free of this obligation.

I haven’t changed my mind, and buyers remain engaged, but the process of selling property in the UK, particularly for shared ownership property, is incredibly long and tedious. We are currently waiting for all parties involved, aside from buyers and sellers, to agree and sign the necessary documents.

This expectation is having an increasingly negative impact on my financial situation and my mental health. I am sinking deeper and deeper into debt and my financial worries are growing.

The sale will happen, for sure, but I have no idea when. In the meantime, I continue to pay a mortgage that I cannot afford. Also, I’m not engaged in a chain of buyers, so this wait should have been much shorter.

Every month I pay my mortgage, I can’t pay off my credit cards and overdraft because I just don’t have the money. This means the interest continues to accrue and I will have to pay it back later. I was forced to sell my house precisely because I ran out of money, and this situation only adds new financial difficulties.

I now have to be very strict with my daily spending. Every month that I don’t move costs me around £1,000, and in August it cost me an extra £2,000 due to solicitor fees for a ‘deed of variation’. Unfortunately, this act is now one of the biggest barriers to sales.

My lawyers advised me to apply for this deed which offers some guarantee that the management companies will not increase rent charges without reason. However, these deeds of variation often must be approved by the original developer. Once signed, it must be sent back to the management companies to sign as well, before I can sign it myself.

All other formalities were taken care of at the beginning of August, so the delay is entirely due to this act, which also cost me an additional £930 which I had not anticipated. According to the real estate agent, their use has increased significantly over the past two years.

The impact of this delay on my precarious financial situation and my mental health is considerable, and I am still in the dark as to the date of finalization of the sale.

I look forward to the day I can get my camper back and start my new life.

Ads