How to sell a shared ownership property

Selling your portion of a shared ownership property is not quite the same process as selling a home you own 100% of. Fortunately, we’re here to go through the entire process so you understand how you can sell your portion of a shared ownership property.

Many people find the shared ownership home selling process fairly easy, but this can differ from person to person, of course.

So, what’s included in selling your shared ownership property? Continue reading to find out.

Can you sell your shared ownership property?

Before we delve into how you sell your shared ownership property, it’s important to understand where you stand in the selling process.

Yes, you can sell your shared ownership property at any time. If you own 100% of the home, you can sell it on the open market like you would any home. However, if you only own a portion – whatever size – the housing association or landlord who owns the other share will attempt to find a shared ownership buyer.

In some situations, the landlord may even decide to buy your portion of the property, but most of the time, it will be marketed to other first-time buyers to help them onto the property market.

How do I sell my shared ownership property?

Before finding a buyer and reaching the sale process, you have a few things you must do first.

Check your lease

If you would like to sell your shared ownership property, you should check your lease.

Each landlord or housing association will have their own way of selling a property of this type so the first thing you need to do is check your lease which will outline all of the terms and procedures you must follow through the selling process.

The lease will include information about who pays for what during the selling process, how the property is valued and provide details of any restrictions you may face.

Contact your housing association or landlord

Speak to your housing association and inform them of your decision to sell the property. Typically, they’ll have eight weeks to find a buyer.

You’ll be charged for marketing fees of around £300 which should cover costs for the creation of floor plans, advertising and photography of the property. Viewings can then be arranged at times to suit you.

If a buyer is found, the housing association will liaise with the buyer’s solicitors. The buyer must earn less than £80,000 per year (£90,000 in London) and have a big enough deposit to buy your share of the property.

If the housing association cannot find a buyer within the set period, you may be able to list the property with an estate agent but you can only find a shared ownership buyer.

Get a valuation report

It is your responsibility to find out the current market value of the property. Your housing association will usually provide a list of registered surveyors who will offer a RICS (Royal Institution of Chartered Surveyors) valuation report.

This can cost between £240 and £500, which you must pay.

Obtain an Energy Performance Certificate (EPC)

You must also instruct an Energy Performance Certificate provider to produce an EPC for your property.

They provide important information about your property’s energy efficiency and offer recommendations on how to improve the home’s efficiency.

It is a legal requirement that this must be arranged within 28 days of the home being marketed.

Complete a contract of sale

Should you decide to proceed with a sale, you must complete a contract of sale that includes details of the solicitor who’ll act on your behalf once a buyer has been found. If you bought the property with a partner, you both must sign the contract of sale.

Arrange photography

The property must have up-to-date photographs to give potential buyers the best advertisement possible.

After speaking to the housing association, they will either arrange for professional photographs to be taken or will leave it to you.

It’s advised that the property is in the best condition possible for the photographs to be taken to give it the best chance of being sold.

The sale

The buyer will go through the same process as when you originally bought the property. This includes attending an interview with an independent financial advisor. If they’re approved and the sale is finalised, your housing association will send you written confirmation.

The solicitors will then liaise with one another to discuss leasehold enquiries.

From this point, the buyer has 12 weeks to complete the purchase but this can be flexible if you’re involved in a chain. A completion date will be agreed upon between the two parties and, when that date is agreed, you will have vacated the property and the keys will be handed to the new owner.

Hire a reliable conveyancing solicitor for your house sale

At GD Property Solicitors, we’re experts in all things conveyancing. Whether it’s handling the conveyancing process of a house sale or purchase, or a remortgage, we can deal with it all.

Our highly qualified team of conveyancing solicitors in Manchester are adept at managing a wide range of situations, including shared ownership property sales.

So, if you need conveyancing solicitors for selling a house, simply contact us today.

Our team will be happy to discuss your situation, and our affordable legal fees and help get the ball rolling on your property transaction.