The Council claims that it is offering shared ownership in the new-build Aylesbury homes. But the shared equity deal comes with restrictive clauses in the small print, i.e. limits to succession and restrictions on capital uplift; i.e. leaseholders’ share of the equity does not increase in line with the property market.
63 year old former market trader Tony Beattie and his wife took up the shared equity offer after being subjected to a compulsory purchase order in 2013. They were forced to accept the Council’s paltry compensation of £140k for their 3-bed maisonette on the Wolverton block and reinvest this as a 56% share of a 2-bed new build property on phase 1a of the redevelopment (Albany Place). However, the small print of Mr Beattie’s lease says that if he don’t staircase up to 100% ownership then he will only receive his initial cash payment of £140k should he ever need to sell the property, or upon decease.
Extract from L&Q’s shared equity lease
Further restrictions in the lease prevent letting or subletting throughout the duration of the lease. Notting Hill Housing Trust’s lease is a slight improvement in that it allows capital uplift on the share of the equity, but is equally restrictive in respect of succession, assignment and subletting. All leaseholders are required to sink their 10% homeloss payment into the shared equity deal.
Notting Hill is also forcing leaseholders accepting the lease to sign a confidentiality agreement preventing them from the discussing the terms of the lease: