Introduction

 

Shared ownership is a UK housing scheme offering an affordable path to homeownership, especially for first-time buyers. Buyers purchase a share of a property, usually 25% to 75%, and pay rent on the rest. Over time, they can increase their stake, known as “staircasing.” This flexibility, along with lower upfront costs, makes shared ownership houses an attractive option. If you’re asking, “What is shared ownership?”, it’s a great solution for those wanting a cost-effective way to own property, particularly in high-demand areas like shared ownership London.

As demand for housing changes, more people are selling their shared ownership houses to move up the property ladder or explore new options. Selling a shared ownership property involves a different process compared to traditional sales, so it’s important to understand shared ownership: how does it work? Sellers must market their share, collaborate with housing associations, and follow buyer eligibility rules. Knowing these steps helps sellers maximize value and make the sale smoother.

 

Understanding Shared Ownership and Resales

 

What Is Shared Ownership?

 

Shared ownership is a UK housing scheme that allows buyers to purchase a portion of a property, typically between 25% to 75%, while paying rent on the remaining share. It’s a flexible option for those who can’t afford full ownership upfront. Over time, buyers can increase their share through “staircasing.” Selling a shared ownership property is slightly different from a traditional sale, as the seller markets only their share, and the buyer must meet eligibility criteria. This model makes shared ownership houses an affordable entry into homeownership for many.

 

Why Consider Selling Your Shared Ownership Property?

 

Homeowners may consider selling their shared ownership home for various reasons, including:

1. Wanting to move to a larger property
2. Relocating for work
3. Needing a lifestyle change
4. Upgrading to full ownership: Many homeowners may seek to upgrade to full ownership, particularly if their financial situation has improved.
5. Flexibility in shared ownership resale: Selling shared ownership offers the flexibility to sell your share and explore new opportunities.
6. Evaluating worth: If you’re asking, “Is shared ownership worth it?”, it can be beneficial, especially if you’re ready to move on and maximize your investment.

When Can I Sell My Shared Ownership Property?

 

• Timing for selling: You can sell shared ownership homes at any time, but certain rules apply.
• Housing association rights: The housing association typically has the right to market the property for the first 8 weeks before you can list it on the open market.
• Eligibility and restrictions: Buyer eligibility and restrictions depend on your specific agreement with the housing association.
• Meeting buyer requirements: Selling involves ensuring that potential buyers meet specific requirements set by the housing association.
• Importance of understanding the process: Understanding the process for shared ownership resales helps streamline the sale and ensures compliance with housing regulations.

How to Sell a Shared Ownership Property: Step-by-Step Guide

 

Step 1: Check Your Lease Agreement

 

Before selling a shared ownership property, review your lease agreement thoroughly. Key clauses often include the housing association’s role in the sale process, their right to market the property first, and any restrictions on selling. Some agreements give the association an exclusive window (typically 8 weeks) to find a buyer for your share. Understanding these terms helps avoid delays and ensures compliance when selling shared ownership back to the housing association or on the open market.

Step 2: Getting an EPC (Energy Performance Certificate)

 

An Energy Performance Certificate (EPC) is a legal requirement when selling a shared ownership house. It provides buyers with an energy efficiency rating for the property and costs around £60 to £120, depending on the provider. You can obtain an EPC from accredited assessors through the government’s EPC register. It’s essential for selling shared ownership homes, as potential buyers will need this certificate to understand the running costs of the property.

Step 3: Valuation of Your Property

 

To get an accurate valuation when selling a shared ownership flat, hire an independent RICS-certified surveyor. The housing association usually requires this professional assessment to ensure the price reflects the current market value. Also, work with estate agents experienced in shared ownership resales to maximize your property’s visibility. An accurate valuation is key to attracting buyers and ensuring a fair return when selling a shared ownership home.

Step 4: Marketing Your Shared Ownership Property

 

When selling a shared ownership property, you have two options: market it on the open market or sell it back to the housing association. Selling on the open market may reach more buyers but involves higher costs. Selling shared ownership back to the housing association is quicker but may yield a lower price. Consider both options’ pros and cons, including the cost of selling shares, to choose the best path for your sale.

Know more about how to sell a shared ownership property

Selling Shared Ownership Back to the Housing Association

 

How Does Selling Back to the housing association Work?

 

Selling shared ownership back to the housing association is a relatively straightforward procedure that includes:

• Notifying the association: Homeowners must first inform the housing association of their intention to sell.
• Property valuation: The association will typically arrange a valuation of your property to determine its current market value.
• Providing documentation: You’ll need to submit relevant documentation about the property, including details of any improvements made.
• Sale options: Once the valuation is completed, the housing association may either offer to buy your share or help find another buyer.
• Follow guidelines: Adhering to the housing association’s guidelines ensures a smooth selling process.
• Stay informed: It’s essential to remain aware of their specific terms and conditions.
• Timesaving: This method can be quicker than selling on the open market, particularly if you’re wondering, “Can you sell shared ownership back to the housing association?”

Costs and Benefits

 

• Costs involved: Selling shared ownership back to the housing association includes specific costs.
• Valuation fee: The primary cost is the property valuation fee, part of the overall selling cost.
• Administrative fees: Additional administrative fees may apply, depending on the housing association.
• Reduced market exposure: One significant benefit is decreased market exposure, leading to a quicker sale.
• Less hassle: The housing association typically manages the selling process, reducing complications with potential buyers.
• Straightforward transaction: This option is ideal for those seeking a simple transaction without extensive marketing efforts.
• Cost-effective and efficient: Selling back to the association can be a more economical and efficient choice for homeowners.

Selling Your Shared Ownership Property on the Open Market

 

How to Market Your Property?

 

When selling your shared ownership property on the open market, working with a knowledgeable estate agent can simplify the process. Estate agents experienced in shared ownership resales can help you reach the right buyers. However, if you prefer selling independently, you’ll need to focus on presenting your property in the best light. Prepare the home for viewings by decluttering, cleaning, and making minor repairs to enhance its appeal. Staging your shared ownership flat or house to look spacious and welcoming is key to attracting interest. Whether you’re selling shared ownership through an agent or on your own, marketing effectively is essential to securing the best deal.

Understanding the Resale Process

 

Selling a shared ownership property involves a few unique steps compared to standard home sales. Before putting the property on the open market, you’ll need to notify your housing association, which may have first refusal to buy back your share. Additionally, shared ownership resale rules can vary, so it’s important to understand the costs of selling shares, including valuation and legal fees. Buyers may also need to meet eligibility criteria set by the housing association. By preparing for these considerations, you can ensure a smooth resale process for your shared ownership home or flat.

Common Challenges When Selling a Shared Ownership Property

 

“I Can’t Sell My Shared Ownership Property” – Why?

 

If you’re thinking, “I can’t sell my shared ownership property,” you’re not alone. Common challenges include:

• Restrictive mortgage options: Some lenders may be hesitant to finance shared ownership resales.
• Limited market demand: Potential buyers must meet eligibility requirements set by housing associations.
• Location and property type: A shared ownership flat in a less desirable area may face lower demand.
• Cost of selling shares: Valuation fees and administrative costs can make the property less attractive to buyers.
• These challenges can slow down the selling process but are not impossible to overcome.

How to Overcome These Challenges?

 

Overcoming challenges when selling a shared ownership property starts with the right strategy:

• Work with estate agents who specialize in shared ownership resale to market your home to eligible buyers.
• Recommend lenders who are familiar with shared ownership mortgages if mortgage restrictions are an issue.
• Improve marketability by addressing minor repairs and staging the property for viewings.
• Keep your asking price competitive to attract more interest.
• Understand the cost of selling shares and prepare for the process to navigate challenges effectively.

These steps can increase the chances of a successful sale.

Staircasing Before Selling: Is It Worth It?

 

What Is Staircasing?

 

Staircasing in shared ownership allows you to increase your ownership percentage in the property over time. By purchasing additional shares, you move closer to owning your home outright. The process is flexible, allowing you to buy more shares when you can afford it. How to staircase shared ownership is straightforward—contact your housing association to arrange a property valuation and determine the cost of buying more shares. Each additional percentage you purchase reduces the rent you pay on the remaining portion. Staircasing shared ownership is a common way to build equity before selling the property.

Benefits of Staircasing

• Increase in property value: Staircasing can enhance the value of your shared ownership property when it’s time to sell.
• Attract more buyers: Owning a larger share of the property may appeal to more potential buyers, as many prefer homes with lower rent payments or fully owned properties.
• Higher sale price: Shared ownership staircasing can lead to an increased sale price, making your home more attractive in the open market.
• Maximize resale value: Consider staircasing shared ownership if your goal is to maximize the resale value before selling your home.

Drawbacks and Costs

 

While staircasing offers advantages, it also comes with costs.

• Cost considerations: You’ll need to cover various expenses, including:
  • Valuation fees
  • Legal expenses
  • Potential additional mortgage costs
• Financial assessment: The staircasing process can be expensive. Using a staircase calculator for shared ownership can help you assess its financial viability.
• Evaluate benefits vs. costs: For some homeowners, the high cost of staircasing shared ownership may outweigh the benefits, particularly if you plan to sell soon.
• Personal evaluation: Carefully consider your financial situation and future goals to determine if staircasing is a worthwhile option for you.

Conclusion:

 

Selling a shared ownership property requires careful planning and understanding of the process. Whether you choose to sell on the open market or back to the housing association, knowing your options is essential. Start by reviewing your lease agreement, arranging a valuation, and preparing your property for viewing. Working with professionals like shared ownership estate agents can make a significant difference, especially when it comes to marketing your home and navigating legal requirements.

Before selling, consider staircasing to increase the value of your home, but weigh the costs involved. It’s also important to overcome challenges like limited market demand or restrictive mortgages by staying informed and flexible. Each step is crucial to ensuring a smooth and successful sale.

For expert advice and assistance, SharedOwner is a trusted platform that specializes in helping sellers navigate the shared ownership market. Whether you’re selling a shared ownership flat, house, or considering staircasing, Sharedowner.co.uk offers the support you need to sell confidently and efficiently in the UK market.