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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 and the potential pitfalls to avoid.
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, you can sell your shared ownership property at any time. But the selling process works differently depending on whether you own 100% of your home or not.
However, you cannot sell your home on the open market if it has a ‘designated protected area – mandatory buyback’ lease. In this circumstance, the landlord will either buy the home or arrange for someone else to buy it.
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Here’s how the process of selling a shared ownership property usually works, if you don’t own 100% of your home.
Each managing agent has its own process when selling a shared ownership property, so 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 should 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.
You’ll need 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 it recommends 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
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.
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.
But bear in mind the landlord’s nomination period doesn’t apply in some circumstances. This includes if you or someone else on the lease dies or if the court has asked you to transfer your ownership.
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 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.
Also, 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.
When you’re choosing your conveyancer, make sure you use one who is experienced in the sale of shared ownership properties. For more on what to consider, read our guide on How to choose a conveyancer / solicitor,
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Just like when selling any home, there is what feels like endless paperwork you need to complete when selling a shared ownership property including:
If you are planning to buy 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.
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. See more detailed information in our step by step guide to selling.
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 fees involved in selling a shared ownership property are:
| Type of fee | Typical cost | What it’s for |
|---|---|---|
| Marketing fees | £350 | This is sometimes non-refundable or may be deducted from the assignment fee if you sell. Covers the cost of floor plans, images and advertising on property portals. |
| Valuation fees | Around £250. But could be much more based on your property’s value. | This pays for a RICS surveyor to value the property |
| Conveyancing fees | Varies but may be around £1,000. Plus, an extra £500 if you need to pay your housing association’s conveyancing fees too. | This covers the costs of the conveyancing solicitor/s handling the legal side of your sale. For more information read our guide on How much do conveyancing fees cost? |
| Leasehold Information Pack | £200-£300 | This pack is given to any potential buyers and includes details such as ground rent, length of lease, service charges, sinking fund and future maintenance plans. |
| Energy Performance Certificate (EPC) | £60-£120 | If the property is more than 10 years old, you will likely need to arrange for a new EPC. |
| Assignment fee | Typically 1%-1.25% of total value of property. | This is payable only if the property sells. |
| Estate agent fees | On average 1.42% of the sold price | If you sell on the open market you will pay estate agent fees instead of an assignment fee. Read our guide on estate agent fees and how you can save. |
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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.
Selling a shared ownership flat or house on the open market is usually possible if you own 100% of the property (providing there are no restrictions). This means you’ll have a wider pool of buyers as you will not be restricted to the affordability criteria.
When you’re selling on the open market, your first step is to choose an estate agent. 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. For more information on the selling process, read our guide How to sell your house: The step-by-step guide.
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.
If you want to sell on the open market but don’t yet own 100% of your property, this is possible via a process called back-to-back staircasing or simultaneous sale.
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.
It may be an option if you:
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.
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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.
Selling a shared ownership property can be harder if you don’t own 100% as you’ll need to find a buyer who meets the eligibility criteria and there may be other factors that make selling a shared ownership property more 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?
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.
After viewings the property, all interested applicants will be sent a reservation form and placed into the selection and allocation process. The successful applicant will then be sent an offer letter and required to pay a reservation fee.
The buyer will then be required to meet a mortgage advisor to check they can afford to buy your share of the property.
HomeOwners Alliance Ltd is registered in England, company number 07861605. Information provided on HomeOwners Alliance is not intended as a recommendation or financial advice.
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