What to Know About Selling a Shared Ownership Property

Selling a shared ownership property, explained

Find answers to some frequently asked questions around Shared Ownership property selling.

What is a Shared Ownership property?

Shared Ownership is a government scheme to help first-time buyers get on the property ladder. It allows you to buy shares in a home - between 10% and 75% of the property’s full market value - that you rent from a housing association or local authority.

You can increase your shares over time - known as staircasing. Most Shared Ownership leases let you staircase up to 100%, at which point you own the property outright. But some are capped at 80% to keep these more affordable homes available for others needing them.

Can you sell a Shared Ownership property?

Yes, you can sell your Shared Ownership property at any time.

If you’ve staircased up to 100% ownership, you can usually sell just as you would any other property - double-check your contract to make sure. Own less than 100%? The housing association or local authority who owns the rest will have the right to buy or sell it, known as ‘first refusal.’ If they don’t find an eligible buyer within four, eight or 12 weeks (depending on how long the agreed nomination period is for your property), you’ll be free to advertise on the open market with an estate agent.

Is selling a Shared Ownership property harder than a ‘normal’ property sale?

In some ways, selling a Shared Ownership property can be easier because the housing association or local authority can help you find a buyer. For example, if they do this within less than four weeks, it could mean a faster sale than if you’d used the open market. The housing association or local authority can also provide the Leasehold Information Form. They’ll also be responsible for marketing the property.

However, there are some extra things you need to consider when it comes to selling a Shared Ownership house. You’ll need to have it valued by a member of the Royal Institute of Chartered Surveyors (RICS) before you can market it - more on this below. You might also have to cover the cost of the housing association’s legal fees as well as your own, and you’ll need to pay for the Leasehold Information Form mentioned above.

How to sell a Shared Ownership property

Read on for a step-by-step guide to selling your Shared Ownership house.

1. Check your lease

Every housing association or local authority will have its own rules for selling a Shared Ownership home. Check your lease now to make sure you know what these are, including all the processes you need to follow around getting the property valued, who pays for what in the sale and any restrictions that might apply.

2. Contact your housing association or local authority

It’s time to let your housing association or local authority know you want to sell your home. At this point, you can confirm how long the nomination period is - in other words, how long you have to wait until you’re free to market the property yourself with an estate agent if they don’t find a buyer.

3. Get your property valued and arrange an Energy Performance assessment

Once you’ve told the housing association or local authority you want to sell, they’ll ask you to arrange and pay for an RICS-qualified surveyor to value your property. The housing association might have some recommended surveyors, or you can find one yourself, if you prefer.

Based on this valuation, the housing association or local authority will give a total market value for your property and work out how much your current share of the property is worth.

The RICS valuation report is valid for three months. Once you receive it, you must send it to your housing association or local authority. If the property doesn’t sell before the three months are up, you’ll need to arrange and pay for another valuation. You’ll also need an Energy Performance Certificate (EPC) that’s less than 10 years old. Check the EPC register to find out if you need to pay for a new one.

4. Complete the relevant paperwork

If you’re happy with the RICS valuation and want to go ahead with the sale, it’s time to fill in some paperwork.

First, you’ll need to complete and return a contract of sale or ‘intention to sell’ form to your housing association or local authority. At this point, you’ll probably be asked to give the details of the conveyancer or solicitor who will act on your behalf, once a buyer is found. It might make sense to find someone with experience in Shared Ownership property sales.

You’ll also need to provide a copy of your lease, along with all the usual paperwork that comes with selling a property. At this stage, your housing association will usually ask you for a marketing fee to cover the cost of photographs, floor plans and advertising the property.

5. Market your property and find a buyer

You’ll now begin the agreed nomination period - usually four, eight or 12 weeks. During this time, the housing association will exclusively market your home - usually through a combination of their own platforms and contacting potential buyers.

Throughout the nomination process, the housing association or local authority should arrange convenient viewing times with you. If they find a buyer, the housing association will check they can meet the mortgage and Shared Ownership scheme requirements. If the association can't find a buyer within the nomination period, you'll be free to market the property yourself or with an estate agent to help you find a Shared Ownership buyer.

If you go down the open market route, remember that there are specific criteria for Shared Ownership buyers. They must earn £80,000 or less (rising to £90,000 or less in London) and have a large enough deposit to buy your share of the property. (Information correct as of April 2023).

6. Formally instruct a solicitor

Once a buyer has been found - either by the housing association, local authority, or through the open market - you'll need to formally instruct your conveyancer or solicitor to handle the sale. It’s important to stay in contact with your solicitor throughout the process to ensure things go as smoothly as possible.

7. Exchange and completion

The buyer will go through a similar process to the one you went through when you first bought the property. Once they’re financially approved, their solicitor will contact your solicitor, and the process of exchanging contracts will begin. At this stage, you’ll get a completion date so you know when to hand over your keys and can arrange payment of outstanding legal fees.

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