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Here’s How to Sell a Shared Ownership Property

Selling a shared ownership property can be a complex process, but with the right guidance, it can become a seamless and successful transaction. Whether you’re looking to sell your shared ownership home or you’re considering the purchase of a shared ownership property to sell it later. 

This comprehensive guide will walk you through the steps and considerations involved in the process. Let’s dive in and explore the ins and outs of how to sell a shared ownership property.

And if you want to know whether you can rent out a shared ownership property, check this guide out for more!

Understanding Shared Ownership Properties

Before we delve into the process of selling a shared ownership property, it’s essential to have a clear understanding of what shared ownership is. Shared ownership is a housing scheme that allows individuals to part-buy and part-rent a property. Typically, buyers purchase a share of the property, often starting at 25%, and pay rent on the remaining portion. 

It’s an excellent option for first-time buyers or those with limited resources to invest in a full property. The share ownership ranges can vary, and the shared owners can increase their stake in the property over time, a process known as “staircasing.”

Preparing to Sell Your Shared Ownership Property

  • Determine Your Eligibility: The first step in selling your shared ownership property is to verify your eligibility. Ensure that you have met the conditions set by the housing association or property developer. Typically, there’s a “resale period” during which shared owners are allowed to sell their shares.
  • Valuation and Pricing: You’ll need to get a professional valuation of your property. This valuation helps in determining the current market value of your share and the property as a whole. It’s crucial to price your share competitively to attract potential buyers.
  • Choose a Conveyancer or Solicitor: To navigate the legal aspects of selling your shared ownership property, you’ll need a conveyancer or solicitor. They will handle the paperwork and ensure that the transaction is carried out smoothly. It’s advisable to choose a professional with experience in shared ownership sales.
  • Notify the Housing Association: Once you’ve decided to sell, inform your housing association or property developer. They may have a “nomination period” where they try to find a buyer for your share before you can sell it on the open market.

Marketing Your Shared Ownership Property

Photography and Property Description

Create a visually appealing listing for your shared ownership property. High-quality photographs and a detailed property description can attract potential buyers. Highlight the unique features and benefits of the property.

Online Listings and Local Estate Agents

List your property on online platforms, such as property websites, and consider hiring a local estate agent to reach a wider audience. Estate agents have valuable experience in marketing and selling shared ownership properties.

Share Resale Websites

There are specialized share resale websites that cater to shared ownership properties. Consider listing your property on these platforms to target a specific audience interested in shared ownership.

Negotiating the Sale

Viewing Appointments

Arrange viewing appointments with potential buyers. Ensure your property is in its best condition during viewings. Answer any questions the buyers may have about shared ownership.

Offers and Negotiations

When you receive offers, carefully evaluate them. Negotiate if necessary, keeping in mind that you want to secure the best deal for your share.

Legal Documentation

Your solicitor or conveyancer will handle the legal documentation, including the sales agreement and any additional documents required by the housing association or property developer.

Common Questions About Selling Shared Ownership Properties

Can I sell my shared ownership property at any time?

While you can generally sell your shared ownership property, there may be restrictions during the initial “resale period” where the housing association or property developer has the right to nominate a buyer. After this period, you can sell it on the open market.

Do I need to pay off the entire mortgage when selling my share?

Yes, you’ll typically need to repay any outstanding mortgage on your share of the property during the sale process.

What happens if I want to sell, but I can’t find a buyer?

If you’re unable to find a buyer, you should consult with your housing association or property developer. They may assist in finding a suitable buyer or have recommendations for selling your share.

How do I determine the price of my share?

A professional valuation will determine the market value of your share. This valuation will help you price your share competitively.

Can I choose my conveyancer or solicitor for the sale?

Yes, you have the freedom to choose a conveyancer or solicitor to handle the legal aspects of the sale. However, it’s advisable to select someone experienced in shared ownership transactions.

Bottom Line

Selling a shared ownership property can be a rewarding experience when approached with the right knowledge and guidance. By understanding the shared ownership process, preparing your property for sale, and effectively marketing it, you can attract potential buyers and secure a successful sale. 

Remember to consult with professionals and follow the legal requirements to ensure a smooth transaction. With the information provided in this guide, you’re now well-equipped to navigate the journey of selling your shared ownership property with confidence. Good luck!

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