Selling Your Shared Ownership Property

Selling your shared ownership property is very different from selling a normal property. You will have to coordinate with the housing association and they will need to approve the sale.

Depending on your circumstances you will need to work out which is the best way to sell your share in a shared ownership property. One option could be to buy the housing association’s share of the property before you sell your half.

Buying The Housing Association’s Share

If you want to own the property outright you will need to buy your landlord’s share. Once you have done this you will have the option to stay in the property or try and make a profit by selling it straight on and keeping all of the money from the sale yourself.

If you do intend to buy the housing association’s share it will make it a lot easier when it comes to selling the property, as you will not be bound under the shared ownership rules and you will be able to sell your home as a normal freehold property and not a leasehold property as it would be under shared ownership.

It will be much easier to sell your home this way as you will be able to pitch it to all buyers, not just those that fall under the shared ownership scheme.

If you are planning to buy the housing association’s share though you will need to ask their permission first and extend your mortgage to cover the extra share.

How much you will have to pay for their share of the property will depend on whether the property has gone up in value and how much it is now worth.

Many people like to have complete control when they sell their shared ownership property because they have more control over who values the property and how much they can market it for.

Selling Just Your Share

If you jointly own the property with the housing association you will need to inform them about two months before you plan to sell. In some areas of the country there are huge waiting lists for shared ownership properties, so when one comes to the market the housing association will usually try and sell your half to somebody on their waiting list.

The housing association selling your share has its upsides and its downsides. It means from the moment you decide to sell the housing association will take it out of your hands for around two months and try to sell it themselves, this is known as the nomination period. The association will also charge you a small fee for this, but usually no more than 1% of the value of the property.

If however the association fails to find a buyer in this time it will be passed back to you to sell. You may be able to negotiate a good asking price on the open market, but you will also have to pay estate agency fees which the housing association will not pay. You will also be restricted to selling it to others that are eligible for shared ownership.

Restrictions When Selling Shared Ownership

Selling your share in your property should be straightforward if you live in an area that has a high demand for shared ownership properties but if there is no demand you may have to lower the asking price.

Some housing associations will also not allow you to buy their share in the property if you live in a rural area. Many housing associations in rural areas will not allow you to buy 100% of the property of your home because shared ownership homes may be in short supply and they do not want it converted into a normal property.

It may seem like you have to jump through a lot of hurdles so sell your shared ownership property, but in many ways it can be easier to sell this type of property than a normal home because you have the help of the housing association.

When selling your shared ownership home you will face the same highs and lows as you would selling a normal property but help will be at hand in the form of the housing association.