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Selling Your Shared Ownership Property

By: Emma Eilbeck BA (hons) - Updated: 16 Oct 2017 | 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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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
Hi there. I currently own 25% of my house and would like to move to a bigger shared house with the same provider. Would my housing association be in a position to help me with this? Many thanks
J - 2-Mar-17 @ 8:14 PM
I have been trying to sell my 50 percent so property for awhile with nojoy.the ha dont want to buy my share back.i've asked to buy all the property but the ha say i can only buy up to 75 percent. I owned my share for more than 10 years now. Is there any way the ha can change the original agreement as my circumstances have changed so much since i buy the property . This situation is stopping myself and family from moving forward
amy - 21-Feb-17 @ 5:12 PM
Hi. I own a 50% shared ownership house. Our house has been on the market for over a year and we are finding if difficult to sell as most mortgage lenders will not lend for a shared ownership home that can only be staircased to 80%. Our housing trust will not move on the 80% and buyers cannot afford (15%) £20,000 deposit. We have lived in the house for 7 years. Any advice would be great.
JC - 16-Feb-17 @ 12:24 PM
Hi I bought 55% share of my house in march 2016, circumstances have changed and me andmy partner are wanting to buy together, so i will be selling my shared ownership, housing association have told me i can sell for 100% buyers will just have to staircase on the same day as it is completed, will many banks accept me for a mortgage with my partner before i sell or will i have to have soldand have the money in my bank from selling for the deposit before they consider giving me one
katy1990 - 15-Feb-17 @ 4:49 PM
Jb - Your Question:
I own 40% of my SO property. It has increased in value by around £30k. Do I have to share the equity on a % basis with the HA?

Our Response:
Yes, you would have to look at the terms of the ownership to see what you would be entitled to.
AffordableHomeAdvice - 9-Feb-17 @ 10:41 AM
I own 40% of my SO property. It has increased in value by around £30k. Do I have to share the equity on a % basis with the HA?
Jb - 8-Feb-17 @ 10:02 AM
Hi, looking for some (legal) advice here. 10 years ago I bought 100% of a previous shared ownership property and I have been paying Management fees of c 30.00 pcm since. I have accepted an offer now but was told by my solicitor that the solicitor I had used for the original purchase had not staircased the ownership from 50% to 100% and the freehold and leasehold agreements had not been merged at the Land Registry. This can be rectified. However should I have been paying Management fees all this time, particularly as I have queried it before with the Management Company, telling them more than once the property was 100% owned.Would appreciate any advice, thank you
greta - 26-Jan-17 @ 9:34 AM
Hello. I own my flat but the freehold to the building belongs to a housing association. Is this detrimental to the selling price?
Razz - 19-Jan-17 @ 6:52 PM
Hi, we and a few neighbors have all staircased to 100% ownership and are fed up with poor management of the HA. So is there a standard procedure/process to change the management of the block or buy the HA's freehold?
Nick - 12-Jan-17 @ 8:24 PM
Joe - Your Question:
I am sell my house for £65,000 and I have Shared Ownership. I might been if my house is 50%. How much my share Ower?

Our Response:
You would have to look at the terms of your contract to see what the finer details of your shared-ownership agreement specifies.
AffordableHomeAdvice - 21-Dec-16 @ 1:55 PM
I am sell my house for £65,000 and I have Shared Ownership. I might been if my house is 50%. How much my share Ower?
Joe - 21-Dec-16 @ 3:31 AM
Annie - Your Question:
Want to sell back my 35% of property on Shared Ownership flat and move. How does it work???

Our Response:
You would have to read the terms and agreements on your contract to see whether this is possible.
AffordableHomeAdvice - 14-Nov-16 @ 12:02 PM
Want to sell back my 35% of property on Shared Ownership flat and move.How does it work???
Annie - 13-Nov-16 @ 3:10 PM
I have a question about the property and it is if I choose to sell the property at this precise time for e.g £200,000 would I make 35% which is £70,000 of the £200,000? Or does it work differently? Originally it was £135,000
Rugby mike - 17-Oct-16 @ 9:10 PM
Hi there, I'm trying to find an answer to a query that is driving me round the twist. I own 25% of my property (total property value when purchased was £169,500) and it has increased in value to £275,000. This is obviously a £105,000 increase in value. If I was to sell, do I receive 25% of the total profit, so circa £26,000 less any admin fess etc that the HA charge for selling? Cheers
Lee_Essex - 22-Sep-16 @ 1:11 PM
Simo - Your Question:
Hi we have just recently sold our shared owenership property, we are moving out on the 30th of this month but the plum life who own it are saying we have to pay the next months rent and service charges is this correct, I don't understand how it would Beas we are not going to be there so why should we have to pay it, any advice would be appreciated thanks in advance

Our Response:
You would have to read the terms and conditions in your contract with the organisation with regards to this. It may be that you have not given sufficient notice to leave etc.
AffordableHomeAdvice - 22-Sep-16 @ 11:21 AM
Hi we have just recently sold our shared owenership property, we are moving out on the 30th of this month but the plum life who own it are saying we have to pay the next months rent and service charges is this correct, I don't understand how it would Beas we are not going to be there so why should we have to pay it, any advice would be appreciated thanks in advance
Simo - 21-Sep-16 @ 10:53 AM
Hi. just have one question, i love to bits my my flat,its only 30% of share but now i have a bigger familly and need more space, but i dont want buy new home i would like to swap, how i can do it? Thank you.
Ewa - 12-Sep-16 @ 8:24 PM
The consequences of selling on the open market are you become liable for their solicitors costs as well as your own and pay all the estate agent fees which I have just done I am trying to find out because I am selling the freehold to my buyer do I have to pay stamp duty at the final staircasing because this would be a definite no for me I would lose too much of my equity can anyone answer this at the back to back staircasing when the buyer buys the whole amount is there any stamp duty liable to me as the seller
josie145 - 7-Sep-16 @ 9:38 AM
I have a question? How can we loan my mom share in a land that allraedy have a huge house with 4 rooms.but we have a oreginal papers .but there are 3 names list including my mom..my mom want to loan her share because two of her sister is the only benifit ..so that why my mom want to laon her share
Dest - 4-Aug-16 @ 5:57 AM
Hi I am looking to sell 75% my property but still remain as a sitting tenant
Matthew pugh - 28-Jun-16 @ 4:58 PM
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