Selling a Shared Ownership Property: What You Need to Know

Selling a shared ownership property can be slightly different to selling a traditional freehold or leasehold home. Many shared owners are surprised to discover that there may be additional steps involved, additional parties to deal with, and potentially longer timescales than they expected. That does not mean the process needs to be stressful. Understanding how shared ownership sales work can help you prepare for the transaction and avoid unnecessary delays.

How Does a Shared Ownership Sale Work?

When you own a shared ownership property, you own a percentage share of the property and pay rent to a housing association on the remaining share. When it comes to selling, the process will depend on the terms of your lease and the requirements of your housing association. In many cases, the housing association will have a period of time in which they can try to find a buyer for your share before the property can be marketed more widely. This is often referred to as the nomination period. The exact requirements will vary depending on the housing association and the terms of your lease.

The Valuation Process

One of the first steps in most shared ownership sales is obtaining a valuation from a surveyor approved by, or acceptable to, the housing association. This valuation is used to determine the price at which your share can initially be marketed. Unlike a traditional sale, where sellers can generally choose their own asking price, shared ownership properties are often subject to specific valuation requirements. The valuation will usually only remain valid for a limited period, and an updated valuation may be required if the property does not sell within that timeframe.

What Is the Nomination Period?

Many shared ownership leases give the housing association the opportunity to nominate a buyer before the property is marketed on the open market. During this period, the housing association may advertise the property to buyers who meet the shared ownership eligibility criteria. If a suitable buyer is found, the sale can proceed through the shared ownership scheme. If no buyer is found during the nomination period, the property may usually be marketed more widely, although the housing association's requirements should always be checked.

Additional Parties Mean Additional Timescales

One of the main differences with a shared ownership sale is that there is often an additional party involved throughout the transaction. As well as the seller, buyer, estate agents, mortgage lenders, and conveyancers, there is often a housing association that must provide information, approvals, and documentation. This can sometimes result in longer timescales than a standard property sale.

Delays can occur where:

• Valuations expire.

• Housing association approval is required.

• Management information is outstanding.

• Additional enquiries need to be answered.

• Documentation has not yet been provided.

  
  

This is one of the reasons why it is often beneficial to instruct a conveyancer as early as possible.

What Costs Should Sellers Expect?

Every transaction is different, but sellers should be aware that there may be costs in addition to standard legal fees.

These can include:

• Valuation fees.

• Housing association administration fees.

• Management pack fees.

• Notice fees.

• Leasehold information fees.

• Estate agency fees where applicable.

  
  

Understanding these costs early in the process can help avoid unexpected surprises later.

Can You Sell 100% of the Property?

In many cases, yes. If you have staircased to 100% ownership, your ability to sell may depend on the terms of your lease. Some shared ownership properties continue to operate under leasehold arrangements even after staircasing to 100%, while others may be subject to different requirements. It is important to review the lease and obtain legal advice regarding the specific property.

Common Reasons Shared Ownership Sales Are Delayed

While many shared ownership sales proceed smoothly, common causes of delay include:

• Waiting for a valuation.

• Expired valuations.

• Housing association approval processes.

• Delays in obtaining management information.

• Leasehold enquiries.

• Mortgage lender requirements.

• Missing documentation.

  
  

Preparation can often make a significant difference to the overall timescale.

Frequently Asked Questions

Do I have to use the housing association's estate agent?

Not always. The requirements will depend on the housing association and the terms of your lease.

How long does a shared ownership sale take?

Timescales vary considerably depending on factors such as the housing association's requirements, the buyer's circumstances, and the complexity of the transaction.

What happens if my valuation expires?

Many housing associations require a valid valuation throughout the marketing process. If the valuation expires, an updated valuation may be required.

Can I sell my shared ownership property on the open market?

Possibly. Many leases contain nomination provisions that give the housing association an opportunity to find a buyer first. If a buyer is not found during that period, wider marketing may be permitted.

Do shared ownership sales take longer than normal sales?

Not always, but the involvement of a housing association and additional approval processes can sometimes add time to the transaction.

Final Thoughts

Selling a shared ownership property is often more involved than a standard sale, but understanding the process can help reduce stress and avoid unexpected delays. Obtaining your valuation early, understanding your housing association's requirements, and instructing a conveyancer at the outset can all help keep matters moving. I regularly assist clients selling shared ownership properties and works closely with housing associations, estate agents, mortgage brokers, and buyers' solicitors to help transactions progress as smoothly as possible.