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Selling Your Shared Ownership Property

By: Emma Eilbeck BA (hons) - Updated: 12 Jul 2018 | comments*Discuss
 
Shared Ownership Housing Association

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.

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[Add a Comment]
Remond - Your Question:
If I bought the property at 25% of 150000, the property is now worth 185000, how much would I be able to put towards another property. With equity made?I need to move closer to family. I'm a lone buyer with 1 dependant under 5.

Our Response:
You would have to look at the terms and conditions of your agreement to see what the split is and what other charges may be incurred after the joint equity of £35,000 has been calculated. In addition, regardless of whether your house is worth £185,000 it does not mean it will sell for this amount.
AffordableHomeAdvice - 13-Jul-18 @ 11:54 AM
If I bought the property at 25% of 150000, the property is now worth 185000, how much would I be able to put towards another property. With equity made? I need to move closer to family. I'm a lone buyer with 1 dependant under 5.
Remond - 12-Jul-18 @ 5:19 PM
I can sell my flat on the open market but the problem I have is the rics report is valuing my property way above what agents say it can sell for .
Mm - 6-Jul-18 @ 9:38 PM
Hi, I bought my 35% of my shared ownership 4 years ago and now trying to sell.I have 4 days left of the 'nominated' 8 week periodwhere the housing association has the right to sell the property.I now want to go to estate agents as it's obvious it wont sell in 4 days.My question is, will I be expected to pay the 1% fee to the housing association on completion AS WELL as paying the estate agent fee for selling? The housing association have done nothing, not even advertised on their own website due to a 'technical hitch'!Only advertising on the 'share to buy' website and not provided any updates or chased the 2 offers that were given - I chased. Seems incredibly unfair that I have to pay two fees for the housing association doing nothing!
Lauren - 1-Jul-18 @ 8:06 PM
I own 50% of a share owner ship with the builders own the rest. I would like to build a conservator cost at around £9500, this would increase the value of the property would they take half of that increase if I was to sell?
Blue - 29-May-18 @ 12:04 PM
Having a 75% share we pay no rent the value free heating and water sky £7 £129,500 in a village. My husband became very ill and his now under a professor 18hr round trip weekly. Due to severley blind deaf mute part paraylised rare brain decease. We have asked to put out 2 bedroom flat walk in shower. They told us that we would have to put your own sale board up. When we first moved in it was advertised as independant living. That is why we brought it. Now with out warning they are now classifying it as alzalmase and care. Which we did not have any notyfacation it was going change. It felt they sneaked it in as it boosts the care up. But with guying 75% they are ery slowly selling. But my husband his getting weaker each time he travels to see the professor a 18hr trip. What advice could you please give us.
GB - 21-May-18 @ 4:01 PM
The housing association have told me that they don't accept offers on their properties (as a policy), when they advertise them.Is this right or are they just hustling me?I have accepted their marketed price as I did think it was worth the money, but the valuer from Barclays viewed it and advised Barclays not to lend me the money because: ‘Whilst most of the property has a brick outer skin, there is a large area of timber frame with timber cladding, (which appears to be the main form of cladding in this location, rather than merely decorative) to the left hand side which is not acceptable under lending policy, therefore the property is not suitable.’ Would this flat be difficult or impossible to sell in the future?
Johneast - 12-May-18 @ 8:59 AM
Frazzle - Your Question:
Hi we have put our shared ownership house on the market + the association have found us a buyer. The house is valued at £155k which means I should get £77500 the buyers have sent a sent a surveyor today from there mortgage lender. Can they change the price from the original offer? If they say work needs doing on the building do the housing association do this? Look forward to your reply.

Our Response:
The buyers can ask for the price to be reduced to take into account the work that needs doing and they wish to do the work themselves. You would have to check your tenancy agreement to find out what you are responsible for repairing in your home and what your landlord is required to fix.
AffordableHomeAdvice - 27-Apr-18 @ 2:15 PM
I clearly ran out of my text allowance on my previous post but hopefully, anyone that didn't get too bored, will take on board what I have said, although, most people will already be fully aware, judging by what I have read on this site. The message has to get escalated to people in authority who can do something to stop peoples lives being ruined, which I intend to do, even if the Housing Ombudsman finds in my favour. How many of these people from Housing Association sleep at night, is beyond me. My sympathy if you are in a similar situation. Kind regards, Cookieboy
cookieboy - 24-Apr-18 @ 12:00 AM
My wife and I were desperately trying to attain some level of Security of Housing, dating back to 2006. Our ages were against us for a standard mortgage and we eventually went down the shared ownership route in 2015, having spent 12 months doing as much research as we could.The Housing Association that we eventually signed up with, ticked all the right boxes and so we went ahead to commit ourselves to the purchase of 25% of a new build 3 bed semi, which for 2 people of Senior years was almost a dream come true. We had not actually seen our particular property as it was still under construction at the time and under health and safety regulations, we were not allowed on site until the association had accepted the property from the developer. However, having done our research via the Associations extensive website and taken into account the assurances given by individuals within the Housing Association, we did not see anything that would give us cause for concern. That was our biggest mistake because by that time, we were financially committed to proceed, plus we had given 2 months notice to our current private landlord, as we had promised we would do.The history is far too involved to highlight here but since taking on this property in September 2015 to today, 23 April 2018, my wife and i have gone through the most traumatic time of our 46 years marriage, so much so that our relationship all but broke down. All of the time that we were trying to resolve problems, no-one from the Association showed any interest (apart from 1 person, for a short period). We were dragged through a totally flawed complaints process lasting 5 months, during which the Association chose to address issues that suited them, while ignoring the many, many examples of themselves failing tocomply with their own laid down policy standards of service and care. The next move was to escalate the complaint to the Housing Ombudsman Service, which was initiated in May 2017. Although we have both found that the Ombudsman staff have been very helpful, due to the workload, we were informed that our case would not come up for consideration until May 2018. Although disappointing at the time, it did at least give me the opportunity to present the best possible case.Due to how the process of Adjudication is followed, now that I have presented my evidence, (some 95 A4 pages plus images),The Adjudication Officer will no doubt have to refer back to ask further question of the Association, which dependant on their response, will have to come back to me for further clarification. Why this process cannot be conducted with all parties present, and an independent Adjudicator to oversee the process and reach a decision, is a little beyond my comprehension. As a result, this process could take up to a further 12 months before a decision is given. By this time, I will be 72 and my wife 73, should either or both of us survive that period. We see the biggest obstacle as being that so many people in sha
cookieboy - 23-Apr-18 @ 11:48 PM
@Stressed - Once you have bought the initial share of your shared ownership home, you can buy further shares through staricasing. Yes, it should have been featured in the brochure that you would need a staircase mortgage or you cannot buy 100% of the share straight away. But, there's not much you can do in terms of recourse. I'd steer clear of shared-ownership homes. Warning signs such as this show you what a messy process it can be. It might have actually saved you from a lot more hassle down the line and you might actually end up being thankful. I'm just trying to disentangle myself from this HA mess.
KareB - 23-Apr-18 @ 10:50 AM
Out of interest if a property is put up for sale on the open market through a Estate Agent,who is responsible for agreeing to put it on the open market?This is what's happening to my parter and I, about 10 weeks ago we came across a house that was advertised for sale either as a 50/50 shared ownership or 100% free hold so we put an offer for the asking price which was accepted within 30 mins so far so good( 100% Free hold ) . Now fast forward 8 weeks, we have now been told by the sellers Estate Agent not our solicitor ( that's another story completely! ) that we can't buy it as we don't have a staircase mortgage, now surely as a 50/50 share holder they should have a responsibly to make it clear that we would need a staircase mortgage to buy the property although this was not mentioned ANYWHERE on the brochure ( I have physical and digital copies ) . Should the HA have let us know or the seller right at the start or even the Estate Agent?Please any insight would be grateful we are pulling our hair out!!!!!!!
Stressed - 22-Apr-18 @ 2:35 PM
Hi we have put our shared ownership house on the market + the association have found us a buyer. The house is valued at £155k which means I should get £77500 the buyers have sent a sent a surveyor today from there mortgage lender. Can they change the price from the original offer? If they say work needs doing on the building do the housing association do this? Look forward to your reply.
Frazzle - 20-Apr-18 @ 5:54 PM
If I purchase a 25% of a £100000 house and then after 2 years the property gets valuated at £150000,, now I want to staircase to purchase 50% how would that work ??Would it still be on the £100000 percentage Pay rate OR the new £150000 rate ?? Hope this makes sense
Sean - 16-Apr-18 @ 8:38 PM
@peachyxcreamy - you'd just have to apply for a new mortgage in the name of you and your partner after having agreed a price with your parents. You'd then go through the normal conveyancing channels. You'd need agree a price, then speak to your HA and a mortgage lender to see whether it's feasible.
CoL - 12-Apr-18 @ 2:59 PM
Hi, Just wondering how it would work (if it would work at all). My parents and I joint own a percentage of the property but they would like to move out. It would be great if my partner was able to move in with myself and have his name on the mortgage and buy my parents out of their share. Would this be able to happen? If so how would I start the ball rolling? Many thanks
peachyxcreamy - 10-Apr-18 @ 9:11 PM
Jerrylee - Your Question:
My Son bought 10% share of a property/flat, he has all the paperwork and has also gone through the 2 months allowing the housing association the period for them to find a purchaser, they could not find one, he received an email advising that he could now sell on the open market, and has found a buyer for the 10%.The housing company have now renegaded on their agreement and advised that he now has to purchase the 90% in order for him to sell.Any advice please help.

Our Response:
Your son would have to read the terms and conditions of his lease. The housing association would be breaching the contract if they decided to try to change the terms. If your son has the written authority to sell on the open market, then he can challenge any about turn from the HA. Your son may wish to seek legal advice regarding this matter.
AffordableHomeAdvice - 10-Apr-18 @ 12:18 PM
My Son bought 10% share of a property/flat, he has all the paperwork and has also gone through the 2 months allowing the housing association the period for them to find a purchaser, they could not find one, he received an email advising that he could now sell on the open market, and has found a buyer for the 10%.. The housing company have now renegaded on their agreement and advised that he now has to purchase the 90% in order for him to sell.. Any advice please help...
Jerrylee - 9-Apr-18 @ 8:25 PM
ZI - Your Question:
I bought 50% share of a house of full price 200K in Feb 2016 and have been paying the morgage of 400 pounds per month (9600 for two years has been paid to bank ) and 450/month rent for two years. Now I have to move to USA and I like to sell my share and current evaluation of the house is 230. is that mean I will get 50 % of total which is 115 K and repay remaining amount to the bank and will get my share. My question is how/where I will get my share/spending against mortgate and deposit?

Our Response:
You would have to read the terms of your contract and lease to find out this information.
AffordableHomeAdvice - 20-Feb-18 @ 10:16 AM
I bought 50% share of a house of full price 200K in Feb 2016 and have been paying the morgage of 400 pounds per month (9600 for two years has been paid to bank )and 450/month rent for two years. Now I have to move to USA and I like to sell my share and current evaluation of the house is 230. is that mean I will get 50 % of total which is 115 K and repay remaining amount to the bank and will get my share. My question is how/where I will get my share/spending against mortgate and deposit?
ZI - 19-Feb-18 @ 5:11 PM
Just about to get new boiler in 50/50 shear with housing associations.in formed them but they whatv £100.00 just for letter to say it's ok , is this right to or just a f##king rip off
Just me - 22-Oct-17 @ 11:42 AM
After reading so many negative comments about new build and Shared ownership I have withdrawn my application. Luckily it was in initial stage so no loss for me. I would rather buy an old house and rent it out to make some money before I go out and buy any new properties. Looks like Gov has ripped us off by making these money grabbing ownership schemes etc
Jazz - 16-Oct-17 @ 2:05 PM
Hello We own 50%, we are in the middle of selling. This actually became a nightmare. The buyer is buying 100% we have been told that we have to purchase remaining 50% from housing association ( this is called simultaneous staircasing) however we have been told that the asking price can not exceed the valuation. So we have agreed with a little less than the valuation says. Now we have been told that we have to pay the difference to the housing association and the Stamp duty tax for purchase ( because we will own 100%). From my personal experience I would never ever buy a house like this if I knew that one day I loose money and I do not recommend to anybody to buy as well.
silvia - 24-Aug-17 @ 8:12 AM
I'm just abouts to purchase a shared acomadation house. How ever the house is priced at £115.000 although someone who bought a new build 2yrs agow in the area is now selling there's for 90k. And it looks a lot nicer. I have a fealing if I buy a share of this house I'm going to make a loss so would it be wise to purchase 25% or 50%. Would my loan amount (mortgage) go down if the value of the house went down too? I'm new to all this and not that good with maths
Paulb234 - 3-Aug-17 @ 4:47 PM
Hi We own 50% in shared ownership and want to move. If somebody was to buy more of what we owe, say 70% or even 100% would we have to lose the remaining 30% or 50%? My housing association is making it sound like this is the case? If this is the case, where's the money we have made going to go? Confused!
Mrs B - 21-Jul-17 @ 10:22 AM
Hi - we have staircased to 100%. How does selling of this kind of property looki like? Would housing association try to find a buyer for a share and they'd buy the rest? Thanks
Emilia Packer - 13-Jul-17 @ 2:06 PM
Hi I own 30% of my shared ownership property. my annual wage is far greater than it was when I originally bought into shared ownership. I'm looking to move to a house on the open market. my shared ownership properties original purchase price was £222,000k and now its worth £350,000k. should I staircase to acquire a larger percentage or should I just sell? not sure what would be the best option.
Lou888 - 20-Jun-17 @ 11:50 AM
We are looking at selling our share of 50% and purchasing in a completely new area. The house we've found, also shared ownership is also for 50%, however, the owner has made significant improvements to the property and has it in writing that the costs can be recouped from her sale. Fantastic, other than the fact that the council still want 50% share of the full market value, and expect the buyer to pay her the 50% plus a further £53000, meaning that the buyer is to pay 65% of the full market value of the house for only a 50% share - no mortgage company in their right mind would agree to this! surely, this is not only unethical and defeating of the point of shared ownership but also against the rules? Surely the if someone at the council has agreed the money for her extension can be recouped, this should be taken out of the councils share of the 50% based in the fact that usually, any improvements subject to permission of course are just part and parcel of having shared ownership and that when selling your share, you forgo the full profit of your improvements based on the fact you only own a share? Anyone able to advise or advise who we can take this to? Thanks
Steph - 4-Jun-17 @ 3:29 PM
I am looking to buy 62.5% of my shared ownership property that we have had for 18 years. They have sent a final figure showing 30% discount and 1% for every year (up to 60% or only £38,000) is this correct as the calculation would be £82,768 discount
Fergie - 22-Mar-17 @ 1:45 PM
I have owned 40% of a property for 10 years. I can only staircase to 80% apparently. It won't sell on the open market ( being up for several years) despite the price now being significantly dropped below market value as the rent has increased so much over the years, all estate agents are telling me it is no longer 'affordable housing'. They won't buy it back from me and won't let me rent it. They won't even let me 'give' it back!!! They were going to vary the lease to allow for 100% stair casing but have no changed their mind. Please any help/advice to suggest on an option to help me move on with my life
Clare - 17-Mar-17 @ 3:09 AM
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