Housing - Shared Ownership

[Hobo]

We have just started marketing a development & an enquiry has come in from someone asking if we are offering shared ownership. I've read up on this & it seems to me that this can only be offered through a housing association, of which I am not.

Now, I would not be against offering this kind of scheme as long as it were all tied up legally, which is easily done, however am not sure I am actually allowed to offer it.

My thoughts are as goes:

Property value: 125k
Offer 50% @ £62.5k
Additional monthly rent of circa: £150 per month
Mortgage payment of circa £350 per moth

Now, the cost to build the apartment to myself is circa 100k, therefore the 62.5k the person gives to me goes to clear part of the 100k debt. The remaining owed 37.5k is put on an interest only mortgage by myself, this costing roughly £188 per month. Offset this by the £150 per month rental means that I am losing roughly £38 per month, however I do still own 50% of the property & I don't have to worry about the place being sat empty for any periods of time.

Is it possible to do this as a limited company ?

[dilbert]

I'm not sure you would want to.

If you're going to compete with the big housing associations (and you may be tied legally to provide anyhow), then provision has to be made for keeping the grass cut, replacing the windows, disabled access, allsorts over and above the normal course of a standard rental agreement. I doubt every housing association tennant makes use of such facilities, but a wise tennant is going to know what they could ask for even if they dont.

You could sell to a housing association + tennant/owner, and to you it would look like nothing more than a normal sale.

The housing association will only offer schemeson properties within a certain cost range, and of a certain nuber of bedrooms. The property must have hot running water, gas cental heating and so on. Assuming you fit those sorts of criteria, then it would not be a problem for the housing association.

I seem to remember that any new multiple occupancy development has to contain a certain proportion of social housing. Asyou are in the business, I would have thought you would know about such things.