If you own a shared ownership home and you are thinking about selling, the first thing you should do is contact your landlord to check what their requirements will be. It is likely that they will have policies in place that you will need to comply with to sell your house.
There are several types of shared ownership leases and the terms of your lease will determine how you can sell. The different types of shared ownership lease include:
- Standard shared ownership leases
- Retirement leases
- Key worker leases
- Shared ownership leases under section 106 of the Town and Country Planning Act
Your landlord will usually require that you instruct a Conveyancer before the process begins. Your Conveyancer can then review your shared ownership lease and let you know if there is anything else you need to think about. This is important as your estate agent will also need to know if there is anything that limits who the property can be marketed to. It’s a good idea to check with your landlord and speak to a Conveyancer before you instruct an estate agent to market your home.
You will need to have your property valued. This valuation must be carried out by a member of the Royal Institute of Chartered Surveyors and your landlord will need to approve the value. The valuation can only be relied on for 3 months. So if after the 3 months you haven’t completed your sale, you may need to get a new valuation. You will be responsible for the costs of the valuation and it’s a good idea to get as much information as you can before the valuation is carried out so you can meet the 3 month deadline.
Sale of Share
There may be a requirement that your landlord is able to market your share of the property for a certain amount of time before you are able to get involved with marketing. This is so they can market to people in your area who are in need of affordable housing.
If a sale is agreed by your landlord then your share will be sold. Your home will remain under a shared ownership lease and you will receive the value of your share, less any costs on completion.
Your lease may state that if the share is not sold within a certain timeframe, or if a sale isn’t completed in a certain timeframe, you can then market the whole of the property with a local estate agent.
Sale of Whole Property
If you are able to sell the whole of your property, you will usually need to arrange for the shares you don’t own to be purchased simultaneously with your sale so that the purchaser can obtain 100% ownership. Your landlord will usually instruct a Solicitor to deal with the paperwork and you may be required to pay their costs upfront.
If your shared ownership property is a house, you may be able to arrange for the freehold to be transferred to the new owner. This will be dependent on the terms of your lease so check with your landlord and Conveyancer before you advise your estate agent of this.