How to Sell a Shared Ownership Property – Parkgate

Selling a shared ownership property can feel daunting at first, but with the right guidance and support, the process is straightforward. Whether you’re moving up the property ladder, relocating, or simply want to sell your shared ownership home, knowing the steps, costs, and requirements will make the journey smoother. In this guide, we’ll explain how to sell a shared ownership property, the legal side, nomination periods, valuation reports, and the role of housing associations and estate agents. Parkgate is here to help you every step of the way.

Understanding Shared Ownership and Why People Sell

Shared ownership is a government scheme designed to help people get onto the property ladder by buying a share of a property and paying rent on the remainder. Typically, buyers purchase between 25% and 75% of the home and pay rent to a housing provider or housing association for the rest. Many shared owners decide to sell their shares for different reasons. Some want to buy a bigger home, some relocate for work, and others choose to staircase up and sell the entire property. Selling your shared ownership property follows a similar process to traditional sales but includes additional requirements like nomination periods and RICS valuations.

The Sales Process Step by Step

Selling a shared ownership home requires careful planning. Below, we break it down into nine clear steps.

Step 1: Check Your Lease and Eligibility

Most shared ownership leases contain detailed rules about selling. They may specify a nomination period (usually 4–8 weeks) during which your landlord or housing association has the first chance to find a buyer. They may also include restrictions like mandatory buyback leases or clauses about short leases. Reading your lease carefully is crucial.

Step 2: Obtain a RICS Valuation Report

Before marketing your home, you’ll need an independent valuation by chartered surveyors from the Royal Institution of Chartered Surveyors (RICS). This valuation report determines the market value of your share. You’ll be responsible for the cost, which usually ranges from £200 to £500 depending on the local authority and surveyor.

Step 3: Energy Performance Certificate (EPC)

By law, all homes sold in the UK must have a valid Energy Performance Certificate (EPC). This shows buyers how energy-efficient the property is. If your EPC has expired, you’ll need to commission a new one before selling.

Step 4: Contact Your Housing Association

Once you have your RICS valuation and EPC, notify your housing association or housing provider that you want to sell. They’ll confirm the nomination period and provide a Key Information Document outlining service charges, lease terms, and eligibility criteria for buyers.

Step 5: Marketing Your Shared Ownership Home

During the landlord’s nomination period, your housing association will typically market your property on their website and other property portals. They’ll vet potential buyers to ensure they meet the affordability criteria and are eligible for the shared ownership scheme.

Step 6: Finding a Buyer During the Nomination Period

If the housing association finds a buyer who meets the eligibility criteria (often first-time buyers with a certain household income), the sale progresses in a similar way to a standard property sale.

Step 7: When the Nomination Period Ends

If the nomination period ends without a buyer, you can instruct an estate agent like Parkgate to market your shared ownership home more widely on the open market. Estate agents often achieve a faster sale by reaching potential buyers through property portals like Rightmove and Zoopla.

Step 8: Legal Side and Conveyancing Process

Once you’ve found a buyer, both your solicitor and the buyer’s solicitor handle the conveyancing process. This involves completing forms such as the Leasehold Information Form, ensuring the buyer understands service charges, and confirming the landlord’s consent. You may also be responsible for covering part of the housing association’s legal fees.

Step 9: Exchange and Completion Date

The sale finalises with exchange and completion. On the completion date, your solicitor transfers ownership of your share, the mortgage arrangements are settled, and the sale completes.

Costs Involved in Selling Shared Ownership Properties

When selling, you’ll encounter several costs, including:

• RICS valuation fee (£200–£500)
• Energy Performance Certificate (£60–£120)
• Housing association’s legal fees
• Your own legal fees for a conveyancing solicitor
• Assignment fee charged by some landlords
• Estate agent fees if marketed on the open market

These costs vary depending on your lease, property value, and whether you sell during or after the nomination period.

The Role of Estate Agents in Shared Ownership Sales

An estate agent like Parkgate plays a vital role when selling a shared ownership property after the landlord’s nomination period. Agents market your home widely, negotiate with potential buyers, and ensure the sales process progresses smoothly. Working with an experienced estate agent helps you attract eligible buyers quickly, secure competitive offers, navigate complexities like short leases and simultaneous sales, and handle communication with solicitors and housing providers.

Legal Fees, Conveyancing Solicitors, and Housing Association Costs

Selling a shared ownership home involves several legal requirements. Both you and the buyer must instruct a conveyancing solicitor experienced in shared ownership leases. Costs typically include conveyancing fees (£800–£1,500), the housing association’s legal fees, Land Registry updates, and lease extension costs if applicable for a short lease. Choosing solicitors familiar with shared ownership ensures fewer delays.

Common Challenges in Shared Ownership Home Selling

Some of the most frequent challenges include lease length falling below 80 years, difficulty finding eligible buyers within the nomination period, additional service charges discouraging potential buyers, lack of awareness about the shared ownership scheme, and complexities around simultaneous sales or back-to-back staircasing. Working with estate agents and independent financial advisors can help overcome these obstacles.

Alternatives: Staircasing, Back-to-Back Sales, and Mandatory Buyback

Before selling, consider alternatives such as staircasing, which involves buying a larger share (up to 100%) to make your property more attractive. Another option is back-to-back staircasing, where you sell to a buyer who immediately staircases to 100%. Some leases also include mandatory buyback clauses, requiring the landlord to repurchase your share instead of allowing open-market sales. These options can sometimes achieve higher returns or faster sales.

FAQs About Selling Shared Ownership Properties

1. Can I sell my shared-ownership home at any time?
   Yes, you can sell your shared ownership home whenever you want, but most shared ownership leases require that the housing association has the first right of refusal during the nomination period.
2. How long does the shared ownership sale process take?
   On average, the shared ownership sales process takes 3 to 6 months, depending on how quickly a buyer is found and the speed of the conveyancing process.
3. Do I need a RICS valuation every time I sell?
   Yes, a RICS valuation report is mandatory, as it establishes the market value of your share under the scheme’s rules.
4. What happens if my lease is short?
   A lease below 80 years can reduce your property’s value. You may need to extend the lease before selling the property, which will incur additional legal fees.
5. Can I choose any estate agent to sell my shared ownership property?
   Yes, after the nomination period ends, you can appoint an estate agent, such as Parkgate, to market your home on the open market.
6. Are there restrictions on who can buy my shared-ownership home?
   Yes, buyers must meet specific eligibility criteria, which include passing affordability checks and meeting income thresholds established by the housing provider.
7. How long is my RICS valuation valid for?
   A RICS valuation normally lasts for 3 months. Some housing associations allow an extension up to 6 months if the surveyor provides written confirmation. If your property has not sold within this period, you may need to commission (and pay for) a new valuation.
8. What exactly is the nomination period?
   Most shared ownership leases give the housing association a “nomination period” (commonly 4–8 weeks) to find a buyer who meets the eligibility rules. However, the exact timeframe varies by lease, and in some cases the landlord may retain nomination rights until exchange of contracts. Always check the wording of your lease.
9. What is an assignment or administration fee?
   Some housing providers charge a resale or assignment fee when you sell. This is usually a set percentage of the sale price or a capped flat fee (for example, 1–2% of the share value, or £300–£500+). The fee covers the housing association’s costs in handling the sale.
10. Do I need to think about lease extension before selling?
    If your lease has dropped below 80 years, it can reduce the value of your property and put off mortgage lenders. You may need to extend the lease before or alongside your sale. With shared ownership homes, lease extensions normally require the housing association’s involvement, so it’s best to start early.
11. Will I need to pay off my mortgage when I sell?
    Yes. Any outstanding mortgage on your share must be redeemed on completion. Your solicitor will arrange for the lender to be repaid from the sale proceeds before you receive any balance.
12. Are there tax implications when selling?
    Stamp Duty Land Tax (SDLT) is generally not payable by sellers, but buyers may face SDLT if they staircase or buy 100% of the property in a back-to-back transaction. If you’ve owned the property as an investment rather than your main home, you may also need to consider Capital Gains Tax (CGT). Ask a tax adviser if you’re unsure.
13. How long does the process really take?
    While many sales complete in 3–6 months, delays can occur because buyers must pass the housing association’s eligibility checks and obtain a mortgage approved under shared ownership rules. Lease extensions, missing documents, or slow conveyancing can also add time.
14. Does this guidance apply across the UK?
    No. The process described here applies to England and Wales. Shared ownership schemes in Scotland and Northern Ireland operate under different legal frameworks, so the steps and rights can differ.

Conclusion

Selling a shared ownership property involves unique steps, from obtaining a RICS valuation to navigating nomination periods and legal requirements. While it can seem complex, working with experienced professionals simplifies the journey. At Parkgate, we specialise in helping shareowners sell their homes confidently, ensuring the best outcome. Whether you’re ready to market your property or are just exploring your options, our expert team is here to guide you.

📞 Contact Parkgate today to discuss selling your shared ownership property.Disclaimer: The information provided in this article is for general guidance only and does not constitute legal, financial, or professional advice. Selling a shared ownership property involves different factors depending on your lease agreement, housing provider, and individual circumstances. You should always seek advice from a qualified solicitor, estate agent, or independent financial advisor before making decisions. Parkgate accepts no liability for any actions taken based on the content of this article.