Selling Your Shared Ownership Home
You are able to sell your share of a shared ownership home at any time. According to the lease you have agreed with your housing association when it comes to sell your housing association will have a nomination period usually 8 – 12 weeks to find a buyer for your home.
During the 8 – 12 week nomination period you are not permitted to sell your shared ownership home privately or through an estate agent. If your housing association is successful in finding a buyer for your home they usually charge an administrative fee. The fee charged is usually a percentage of the share you own, of the full market value achieved for the property + VAT. You will be able to sell your home privately or through an estate agent, if your housing association is unable to find a buyer.
What do I need to do to sell my shared ownership home?
Below you can find information on what is required to be done in order to sell your shared ownership property, you can see a step by step guide here.
First and foremost you should contact your housing association and tell them you are looking to sell your share of the home. You will usually be required to fill out an application form and then asked to select a surveyor to value your home. As part of your contract you need to instruct a RICS valuation to determine the value of the share you own. You will be required to pay a fee for the valuation which will be agreed before proceeding. Housetrade have partnered up with a panel of specialist shared ownership surveyors giving you the choice and ensuring you benefit from the most suitable and cost effective offering available see the list here.
Once instructed the surveyor will arrange to visit your home to carry out the survey to determine the valuation that sets the sale price for your home. Your housing association will then work out the value of your share from this valuation, you are still not committed to the sale even when you have instructed the valuation. Your housing association will explain each step of the process to you and arrange for suitable photographs to be taken for the marketing your home. You will need to ensure your property is tidy and in a state for viewings to ensure you have the best chance of selling your home. See our guide for staging your shared ownership home here.
Once your housing association has received your valuation report from the surveyor they will provide a contract for you to sign agreeing the fee and details of how your home will be sold. At this stage if you wish to proceed with the sale you (and if you bought with someone else, the other person) will need to complete and return the contact of sale including details of the solicitor you intend to instruct to act for you when a buyer is found. Housetrade have partnered up with a panel of specialist shared ownership property solicitors to provide you with the best array of options and choice to ensure you get the most suitable service at the best price, see the list here.
You will also be required to instruct an (EPC) Energy Performance Certificate provider to produce an EPC. You will need to confirm that an EPC has been commissioned before you are able to start the process of selling your home. It is a legal requirement that a valid EPC must be provided within 28 days of commencing marketing a property. Housetrade have partnered up with a specialist panel of shared ownership EPC providers to give you with the best array of options and choice to ensure you get the most suitable service at the best price, see the list here. An EPC provides essential information the energy efficiency a property and make recommendations improve that can be made to its energy efficiency.
Once completed the sales details are added to the housing association’s and the local HomeBuy Agent’s websites. These details will also be sent to potential buyers from the local HomeBuy Agent’s waiting list. Any potential buyers are generally instructed to contact you (the seller) directly to arrange a convenient time to view your home. Any potential shared ownership buyers who show an interest are then prioritised in terms of their eligibility for shared ownership property (for eligibility criteria for shared ownership see here) and a buyer will then be nominated by your housing association.
The nominated buyer will then go through a process you will be familiar with upon buying a shared ownership home yourself, involving a compulsory financial interview with an independent financial advisor. If a buyer is then approved financially and a sale has been agreed, your housing association will send you written confirmation of all the details. The housing association’s solicitor will then in turn be in contact your instructed solicitor. As standard in the sales process the buyer’s solicitor raises leasehold enquiries with your solicitor relating to your home.
In usual circumstances the buyer has 12 weeks to complete the purchase of shared ownership property depending on your circumstances and if you are buying another property. Your solicitor and the buyer’s solicitor will agree an exchange and completion date between you and the buyer (your housing association usually won’t be involved in this). We always recommend that you to keep in regular contact with your solicitor to ensure a smooth progression with the sale, even it is simply for your peace of mind.