Selling Your Shared Ownership Property in the UK: A Guide

Selling Your Shared Ownership Property in the UK: A Guide

Selling a shared ownership property in the UK differs from selling a fully owned home. In shared ownership, you own part of the property, and a housing association owns the rest. This guide outlines the key steps and important considerations when selling your shared ownership property.

Understanding Shared Ownership

Shared ownership allows you to buy a percentage of a property, typically between 25% and 75%. Meanwhile, the housing association owns the remaining share. Additionally, your lease agreement governs the process of selling your property.

Key Steps to Selling

1. Notify the Housing Association

When you decide to sell, you must inform the housing association. Typically, your lease will outline the exact process. Moreover, they usually have a “nomination period,” which often lasts between 4 and 12 weeks. During this period, they will try to find a buyer for your share. If they are unable to do so, you may sell your share on the open market.

2. Valuation of Your Property

The housing association will arrange a valuation with a RICS-qualified valuer. This valuation determines the market value of the entire property, not just your share. As a result, it affects how much you can sell your share for. To ensure the valuation is accurate, make sure it reflects the current market conditions.

3. The Nomination Period

During the nomination period, the housing association will actively search for a buyer. Typically, they prioritize individuals on their waiting list for shared ownership properties. If they manage to find a buyer, the sale proceeds with the association. Notably, the buyer will assume the shared ownership agreement and lease.

4. Selling on the Open Market

If the housing association doesn’t find a buyer during the nomination period, you can opt to sell on the open market. However, the buyer must still meet the housing association’s eligibility criteria. Once they’re approved, the buyer will take over the shared ownership lease. In this case, working with an estate agent experienced in shared ownership sales is highly recommended, as they can help market your share to the right buyers.

Legal and Financial Considerations

5. Instruct a Conveyancing Solicitor

Selling a shared ownership property requires legal paperwork. Therefore, it’s crucial to hire a conveyancing solicitor with experience in shared ownership sales. Your solicitor will manage all the legal details, such as preparing documents and ensuring the buyer meets the eligibility requirements.

Furthermore, you’ll need to provide the buyer with the lease agreement and other essential documents.

6. Housing Association Fees

The housing association may charge various fees during the sale process. These could include administrative or legal fees, for instance. It’s important to clarify these fees early on, so you’re not caught by surprise later.

7. Eligibility Criteria for Buyers

The buyer must meet the housing association’s eligibility criteria. This might include income limits or other requirements. As a result, make sure potential buyers are aware of these criteria. If they fail to meet them, it could significantly delay the sale.

Important Considerations

8. Staircasing

If you’ve increased your share in the property through staircasing, this will affect the sale price. Make sure to disclose this to any potential buyers. If you haven’t staircased, this will also influence the sale price.

9. Lease Length

The remaining length of the lease is another crucial factor. A shorter lease can reduce the property’s value. Therefore, inform potential buyers about how much time is left on the lease, as this could impact their ability to secure financing.

10. Fast Cash House Buying Options

If you need to sell quickly, consider a fast cash house buyer. These companies offer quick sales, although usually at a lower price. While this option can be useful if you need to move fast, it often requires accepting a reduced offer.

Conclusion

Selling a shared ownership property requires careful planning and communication with the housing association. Additionally, understanding your lease terms and seeking professional advice is essential for a smooth transaction. By following the steps outlined here, you can successfully sell your shared ownership property. Finally, be sure to explore all options, including fast cash house sales, if time is tight.