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Selling a shared ownership property can be more complicated than selling other types of homes. Here is everything you need to know about the process of selling your shared ownership home.
Selling a shared ownership property is less straight forward than other types of homes so it’s important to know what the process involves and what the potential pitfalls are so that you can avoid them.
Shared Ownership is a government scheme which helps those who can’t afford to buy on the open market, to buy a share of a property and pay rent on the rest.
You can purchase between 10%-75% of a house or flat and can buy more shares over time through a process known as staircasing. Most shared ownership leases allow you to staircase up to 100%, although not always.
To be eligible for the scheme you must have a household income of less than £80,000 (or £90,000 a year in London).
Yes. If you have purchased 100% of your home through staircasing, you can usually go ahead and sell your home on the open market. See our step by step guide to selling.
If you don’t own 100% of your home, you must tell your housing association or local authority as they have the right to buy it or find a buyer through a process known as “first refusal” – read on for more on this.
However, you can’t sell your home on the open market if it has a ‘designated protected area – mandatory buyback’ lease. In these cases, the landlord will either buy the home or arrange for someone else to buy it. If you’re not sure what type of lease you have, check the ‘key information document’ for your home.
There are various shared ownership selling fees you will incur but these can vary so it’s best to check with your housing association. However, typical costs involved in selling a shared ownership property are:
Most housing associations and local authorities will have a similar process for selling a shared ownership property, although there can be differences so always check. But if you’re asking how to sell a shared ownership property, this is how it typically works.
Because each managing agent has its own process when selling a shared ownership property, it is always best to check your lease. Your lease will outline the procedure that is to be followed when selling your home. Your lease may also include information on:
The shared ownership lease may also include information on the “nomination period” – the length of time that the housing association will be able to exclusively market your home. This is usually between 4 – 12 weeks. After the nomination period is over, you’ll usually be free to market the property with an estate agent.
Once you have familiarised yourself with the process and you are sure you want to sell your home, it is time to contact your housing association and notify them.
When selling a shared ownership property, your next step will be to arrange and pay for a RICS (Royal Institute of Chartered Surveyors) qualified surveyor to determine the value of your home. Your housing association may have a panel of surveyors which may be the easiest option.
But you can go with your own valuation surveyor if you prefer. The RICS valuation report is valid for 3 months and must be sent to your housing association or local authority. If your house doesn’t sell within this time frame, it will have to be revalued and you will need to pay again. Find a local valuation surveyor and compare quotes with our free tool
You will also need an Energy Performance Certificate that is less than 10 years old. You can check the EPC Register if you are unsure whether you already have one. If not, you can use our free tool to find an energy assessor and compare quotes to get the best deal.
After receiving the RICS valuation, the housing association will send it to you to confirm the sale price. To move forward, you must approve the valuation and instruct the housing association to begin marketing your property.
You will now enter an agreed nomination period and your home will be actively marketed by the housing association for 4, 8 or 12 weeks depending on the lease. They may market the home on their own platforms or contact potential buyers who are currently looking for a house like yours.
After the agreed nomination period, you can choose your own choose your own estate agent to market your property. Online estate agents can be cheaper. In particular, 99home have good value all inclusive shared ownership resale packages that are worth considering and you can get an extra 5% off with the discount code HOATEAM
However you’ll need to find a buyer who fulfils the housing providers eligibility criteria for shared ownership. Also, not all banks provide shared ownership-friendly mortgages, so your pool of potential buyers may be reduced.
Bear in mind the landlord’s nomination period doesn’t apply in some circumstances. This includes:
Part of the marketing process will involve having photographs taken of your property. Make sure your home is tidy and looks at its best in the photographs so that it’s marketed in the best possible way.
Once a buyer has been found, you’ll need a conveyancer or solicitor to handle the sale for you, so do your research and put one in place. When selling a shared ownership property, you may need to pay the legal fees for your housing provider, as well as your own legal fees, so check your lease to find out. And it’s a good idea to use a conveyancer who is experienced in the sale of shared ownership properties. Get instant conveyancing quotes from regulated and reviewed conveyancing solicitors that cover your area today with our easy to use Find a Conveyancer page.
Just like when selling any home, there is what feels like endless paperwork you need to complete including:
If you are planning on purchasing a new home, you should seek mortgage advice to ensure you can obtain the required mortgage (if applicable) before going ahead with the sale. Get free mortgage advice with award-winning mortgage brokers L&C. Start the process online or speak to experts over the phone today. They’ll search the market for you to find a good mortgage deal.
When selling a shared ownership property and a buyer is found, they must meet the eligibility criteria to purchase a home through the shared ownership scheme. Plus they’ll have a detailed financial assessment with a mortgage broker to assess affordability.
Assuming they do and want to proceed, the next step is for your buyer to reserve the property and begin the conveyancing process.
Once the legal work has been done and all parties are satisfied, the process of exchange of contracts will take place and the legally binding documents will be signed, and you will be given a completion date so you can hand over the keys.
Selling a shared ownership property on the open market is usually possible if you own 100% of the property (providing there are no restrictions). You will have a wider pool of buyers as you will not be restricted to the affordability criteria. For more advice on estate agents, see our guide How to find the best estate agent and use our Find an Estate Agent tool to compare performance of local estate agents.
You may also want to consider online estate agents which offer cheaper fees. In particular, 99home have good value all inclusive shared ownership resale packages that are worth considering and you can get an extra 5% off with the discount code HOATEAM.
Potentially, yes. This is known as back-to-back staircasing or simultaneous sale and it may be an option if you:
When you apply to staircase to 100% ownership, your property will no longer be covered by the shared ownership rules so you can sell as normal on the open market. When your buyer is ready to complete the purchase, you’ll simultaneously staircase to 100% and complete the sale, generally on the same day – this means you won’t need to raise any extra money for the remaining share.
But there are things to consider. You should firstly contact your housing association to tell them this is what you wish to do and find out their requirements and any costs they might charge. It’s also important to get specialist legal advice on this matter.
Get instant quotes from regulated and reviewed conveyancing solicitors that cover your area. Our customers save on average £490.
If this happens you can ask for another valuation, but it has to be carried out by a RICS Surveyor and you will need to pay for it. The surveyors have a standard way to survey properties, so it is unlikely that the new valuation will be wildly different. For instance, they cannot take into account a designer kitchen or a refurbished bathroom. You can also challenge the valuation by finding comparable properties locally that have sold for more. You can check sold price on the Land Registry website.
This depends. In her report Shared Ownership: The Consumer Perspective, housing expert Sue Phillips warns, ‘If the shared owner sells on the open market and achieves a higher sale price than the RICS valuation, the housing association receives their share per the RICS valuation, and the shared owner keeps the balance. However, if the shared owner can only find a buyer at a lower price than the RICS valuation they may be required to take on the full shortfall, not just on the percentage share they hold.’
Potentially, yes. Just like when you buy any home, if its value can increases and you then sell, you can make a profit. However, it’s not guaranteed as property prices can go up and down. And you’ll have various shared ownership selling fees to factor into your costs which will eat into any gains.
Either the buyer or seller can pull out until contracts are exchanged. If this happens to you and you’re still in your nomination period, your housing provider will try to find another buyer.
When a housing association buys back your shares and lets you rent the property, this is known as flexible tenure. However, it is rare. If you wish to sell back some of your shares you should contact your housing provider.
When you’re selling a shared ownership property there are lots of different factors to consider, compared to selling on the open market. So using an online calculator may not offer you the help you need – instead read our step by step guide above on selling a shared ownership property and follow the steps we advise.
If you’re unhappy with your housing association when trying to staircase or when selling a shared ownership property, get a copy of your housing association complaints procedure and follow it to make a formal complaint. If you are still unhappy with their response, you can take your complaint to the Housing Ombudsman. This is a free service and they can award compensation and/or require the association to take action.
Just like selling any property, it’s common for delays to occur when selling a shared ownership property. So do everything you can to speed things up, such as answering any queries promptly and filling out the necessary paperwork without delay. Find more information in our guide on How to speed up conveyancing.
There may be factors that make selling a shared ownership property difficult, such as if it has a short lease. For more information read our full guide on Shared Ownership: What is it? Is it worth it?
Yes. If you own 100% of your home, you can usually sell it on the open market although it will depend on the terms of your lease. For more information read our guide on Shared Ownership: What is it? Is it worth it?
This means that the housing provider or association will have the right to find a buyer themselves, before you market it to anyone else, to a fixed period of time. This may even be the case if you own 100% of your home. Find out more in our guide Shared Ownership: What is it? Is it worth it?
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