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Selling your Shared Ownership home

Selling a Shared Ownership property involves a unique set of steps compared to selling a fully owned property. Whether you’re looking to move to a new home, upgrade your ownership stake by staircasing, or simply cash out your investment, we’ll provide you with a comprehensive overview of how to sell your Shared Ownership property in the UK.

Understanding Shared Ownership

Shared Ownership schemes allow you to purchase a share of a property, typically between 25% and 75%, and pay rent on the remaining portion. When selling your Shared Ownership home, you’ll need to navigate specific rules and procedures set by your housing association or the Shared Ownership provider.

First time hearing about Shared Ownership? We’d recommend taking a look at What is Shared Ownership.

Step-by-step process for selling a Share Ownership home

Selling your Shared Ownership property is different from selling a fully owned home, and your specific case may differ depending on factors such as:

However, there is a general approach which we’ve outlined below. To learn more about your unique case, reach out to a member of our friendly team.

CGI dressed second bedroom at The Ostlers

1. Check your lease agreement

Before starting the sale, review your lease agreement. It outlines the terms and conditions related to selling your Shared Ownership property, including any restrictions or obligations you need to fulfil.

Pay close attention to clauses related to the resale process, such as offering your housing association the right to find a buyer first.

The lounge photo is a CGI dressed representation taken in an actual Three Bedroom House at Rogerson Gardens, Whittingham

2. Notify your housing association

Contact your housing association to inform them of your intention to sell. They’ll guide you through their specific procedures and requirements. Many housing associations have a nomination period, typically four to eight weeks, during which they have the right to find a buyer from their waiting list. This period varies by association, so confirm the exact timeframe with yours.

If the housing association is unable to find a buyer, you can sell you home on the open market through an estate agent. You can either: 

– Find a buyer for your specific share
– Purchase the remaining shares in your home and then immediately sell the 100% ownership to your buyer. This happens simultaneously through a process known as ‘back-to-back staircasing’. 

3. Get a valuation

If you’re still in the nomination period stated by your housing association, your property needs to be professionally valued to determine its current market value.

Your housing association will often require you to use a Royal Institution of Chartered Surveyors (RICS) accredited surveyor. The valuation report is usually valid for a specified period – often three months – and you’ll need it to set the sale price of your share.

4. Prepare your property for sale

Just like selling a fully owned home, preparing your property for viewings is crucial. This might involve decluttering, making minor repairs, and staging your home to appeal to potential buyers.

High-quality photographs and a well-written property description can significantly impact the interest level.

Interior photo of the lounge area taken in the 2 Bed Showflat, Plot A1.04 at Cavalier Court

5. Marketing and viewings

If your housing association finds a buyer within the nomination period, the process will proceed with them. If not, you can market your share on the open market. Estate agents or online property platforms can help with this.

Be prepared to conduct viewings and provide potential buyers with necessary information about the property and the Shared Ownership scheme.

Image is a CGI representation of the bedroom taken in an actual 1 bedroom apartment at Wykin Meadows, Shared Ownership Homes from Legal And General Affordable Homes

6. Handling offers and negotiations

Once you receive an offer, you’ll need to negotiate the terms of the sale.

Your housing association may have to approve the buyer to make sure they meet the eligibility criteria for Shared Ownership, and they’ll work with you on this if applicable.

7. Legal work and conveyancing

After accepting an offer, the conveyancing process begins. You’ll need a solicitor to handle the legal aspects of the sale. They’ll:

– Draft the contract of sale
– Manage communications with the buyer’s solicitor
– Arrange for the transfer of ownership
– Make sure that all obligations under the Shared Ownership lease are met.

This stage can take several weeks, so keeping in regular contact with your solicitor can help prevent delays.

8. Completion!

Completion is the final step, where the sale is finalised, and ownership is transferred to the buyer.

On the agreed completion date, you’ll receive the funds from the sale, pay off any outstanding mortgage on your share, and settle any fees with your housing association. You’ll also hand over the keys to the new owner.

Navigate your sale smoothly with Legal & General

Selling a Shared Ownership home is unique. Hopefully, this post has helped you better understand the process. Whether that’s relieved fears of selling, or just helped you map out your next steps, it’s worth being informed of each stage so there are no surprises. 

Legal & General Affordable Homes is here to support you. For more information and personalised guidance, take a look at some of our FAQs, or contact our team.