How to Sell A Shared Ownership Property?

10 minutes read

Selling a shared ownership property involves a few additional steps compared to selling a traditional property. Shared ownership means you own a portion of the property while a housing association or developer owns the remaining share. If you are looking to sell your shared ownership property, here are some things to consider:

  1. Contact the housing association: Inform the housing association that you wish to sell your share in the property. They may have certain rules and regulations that need to be followed, so it's important to communicate with them from the beginning.
  2. Appraisal: Get an independent valuation of the property to determine its market value. This will assist you in pricing the property appropriately to attract potential buyers.
  3. Advertising: Market the property for sale. You can consider advertising through estate agents, property websites, social media platforms, or local newspapers. Highlight the benefits of shared ownership, such as a lower deposit requirement or affordable monthly costs.
  4. Potential buyers' eligibility: Make sure potential buyers are eligible for shared ownership. They must fulfill certain criteria such as having a certain income level and not already owning a home.
  5. Share transfer: Once you find a buyer, they will need to go through an application process with the housing association. The association will assess the buyer's eligibility, usually based on their financial circumstances, before approving the sale.
  6. Solicitors and legal work: Appoint solicitors to handle the legal aspects of the sale. They will handle tasks such as drawing up contracts, exchanging legal documents, and transferring ownership.
  7. Valuation and mortgage for the buyer: The housing association may require the buyer to have their own valuation and mortgage arranged. The valuation will ensure the property's value is satisfactory, and the mortgage will provide the necessary funds for the buyer to make the purchase.
  8. Finalizing the sale: Once everything is in order, complete the sale by exchanging contracts and transferring ownership. Any outstanding share owned by the housing association will be paid off, and the buyer will become the new shared ownership owner.


Remember, the process of selling a shared ownership property may vary depending on the specific terms and regulations of the housing association involved.

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How to sell a shared ownership property?

To sell a shared ownership property, here are some steps you can follow:

  1. Contact the Housing Association: If you own a shared ownership property, you likely have a housing association as your co-owner. Inform them of your decision to sell and understand the requirements and processes involved.
  2. Valuation: Get a professional valuation done for your property to determine its market worth. This will help you set a realistic selling price.
  3. Notify the Housing Association: Inform your housing association about your intention to sell, following their specific procedures. They may have certain rights or restrictions in selling the property, and they may also have their own interested buyers or "nominees" lined up.
  4. Find a Buyer: Advertise your property for sale and start looking for potential buyers. You can use online platforms, real estate agents, or local property listing services to reach a wider audience.
  5. Sales Pack: Prepare a sales pack containing all relevant information about the property, such as lease details, floor plans, energy performance certificates, service charges, and any other important documents.
  6. Share Ownership Information: Make sure potential buyers understand the concept of shared ownership and its associated responsibilities. They need to know the percentage they will be buying and the remaining share that will still belong to the housing association.
  7. Offer to Sell to the Housing Association: Some housing associations have a right of first refusal, meaning they may have the option to purchase the property themselves before you sell it to an external buyer. You can inquire about this option and potentially negotiate a deal directly with them.
  8. Appoint a Conveyancing Solicitor: Once you have a buyer, appoint a conveyancing solicitor to handle the legal aspects of the sale. They will guide you through the process of transferring ownership.
  9. Complete the Sale: Work with your solicitor to finalize the sale, including exchanging contracts, paying off any outstanding mortgage or rent, and transferring the legal ownership.
  10. Handover and Exit: Once the sale is completed, arrange for the handover of the property to the new buyer. If necessary, coordinate with the housing association to ensure a smooth transition for the new co-owner.


Remember that the specific steps and requirements may vary depending on your location and the exact terms of your shared ownership agreement, so it's always advisable to consult with professionals and seek guidance from the housing association throughout the selling process.


What is the difference between shared ownership and full ownership?

Shared ownership refers to a situation in which multiple individuals or entities each own a portion or share of an asset, property, or business. Each co-owner has a specific percentage of ownership, which may determine their rights and responsibilities, and they often share the costs, profits, and decision-making.


On the other hand, full ownership refers to the sole ownership of an asset, property, or business by a single individual or entity. In this case, the owner has complete control, rights, and responsibilities related to the asset and is entitled to all the benefits and risks associated with it.


In summary, shared ownership involves multiple owners who have shared rights, responsibilities, and costs, while full ownership denotes exclusive ownership and control over the asset.


What is the difference between staircasing and selling a shared ownership property?

Staircasing and selling a shared ownership property are two different processes related to shared ownership homeownership.

  1. Staircasing: Staircasing refers to the process of purchasing additional shares in a shared ownership property. When initially buying a shared ownership property, a buyer usually purchases a percentage share of the property, typically between 25% to 75%. However, over time, the homeowner has the option to buy more shares in the property, gradually increasing their ownership percentage. The process of purchasing additional shares is known as staircasing.


Staircasing can be advantageous for shared ownership homeowners as it allows them to increase their stake in the property, reduce the amount of rent paid to the housing association, and potentially gain full ownership of the property by purchasing 100% of shares.

  1. Selling a shared ownership property: Selling a shared ownership property involves selling the ownership stake in the property to another buyer. The homeowner, in this case, sells their share of the property to a new buyer, who then enters into a shared ownership agreement with the housing association.


When selling a shared ownership property, there are certain rules and regulations that need to be followed. For example, the housing association often has the right of first refusal, meaning they have the option to find a buyer for the property before it can be listed on the open market. Additionally, there may be restrictions on who can purchase the shared ownership property, such as income limits or priority given to certain groups, such as key workers or first-time buyers.


In summary, staircasing relates to purchasing additional shares in a shared ownership property to increase ownership percentage, while selling a shared ownership property involves selling the ownership stake in the property to another buyer.

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