Selling a Shared Ownership Property

When you purchase a Shared Ownership property, you own it jointly with a housing association or provider and pay them reduced rent on the share they own. So, if you wish to sell the share you own, the first step is to contact your housing provider and let them know.

Once you’ve informed your housing provider of your intention to sell, you’ll need to arrange for the property to be valued by a RICS-approved surveyor – RICS Find a Surveyor (ricsfirms.com).

This will help determine the market value of your property and enable your housing provider to work out the value of your share.

It’s also important to note that RICS valuations have an expiry date (often three months) so if the sale doesn’t complete within that time, a new valuation may need to be arranged.

After your property has been valued, if you wish to proceed with your sale, you’ll need to instruct a solicitor or conveyancer to deal with the legal side of the transaction. At this stage, your housing provider should provide you with a written contract of sale to complete with your solicitor’s details and sign.

If you don’t have a valid Energy Performance Certificate (EPC) for your property, you’ll need to arrange for an assessment to be carried out. An EPC is a legal requirement to sell any home and they are valid for 10 years, so if you purchased your Shared Ownership property within that period, you’ll probably already have a valid certificate but always check before putting your home on the market. Find an energy certificate – GOV.UK (www.gov.uk)

If you own less than 100% of your property, your housing association is entitled to sell your share in the first instance. This is known as a nomination period, and essentially gives your housing association an exclusive period of time, usually eight weeks, to find a buyer to purchase your share of your property. If your housing association fails to find a buyer in that time, you then have the opportunity to sell on the open market. However, you’ll be restricted to finding a buyer who is eligible to buy a Shared Ownership property and can afford to purchase the share you own. Housing associations often have waiting lists of people wishing to purchase a Shared Ownership home, so in many cases, they’re able to find a buyer within that nomination period.

Some housing associations will charge you a fee for marketing your Shared Ownership property to potential buyers.

Once you’ve informed your housing provider of your intention to sell, you’ll need to arrange for the property to be valued by a RICS-approved surveyor – RICS Find a Surveyor (ricsfirms.com).

The valuation fee depends on the size and location of your home, but you should budget between £250 and £500 to cover this.

Any property sale or purchase requires the work of a solicitor to take care of the legal side of the transaction – and Shared Ownership sales are no different.

As all Shared Ownership properties are sold on a leasehold basis, the seller’s solicitor is required to provide a Management Pack (also known as a LPE1 pack).

This is usually prepared by the landlord and includes key information about the lease, rent, service charges and any planned works. The pack is typically obtained at a cost, which varies depending on the landlord or managing agent.

If you don’t have a valid Energy Performance Certificate (EPC), you’ll need to get one in order to sell your property.

If your housing association is able to sell your Shared Ownership home within their nomination period, they’ll usually charge a percentage of the sales price as a fee. Often this is around 1.5%, but it can vary depending on the housing provider. If they’re unable to sell your home and you opt to sell on the open market, you’ll need to factor in an estate agent’s commission.