- Shared Ownership
- Specialist lending
Shared ownership provides an alternative route to homeownership for buyers who would struggle to raise the funds needed to buy on the open market.
Giving first-time buyers, as well as buyers who currently own a home, the opportunity to purchase a share in a new build or resale property, shared ownership allows buyers to purchase a proportion of a home, usually between 25% and 75%.
Investing in a shared ownership property offers several benefits:
But what happens when it comes to selling a shared ownership property?
We’ve created a helpful guide outlining everything you need to know about selling a shared ownership property.
Before selling, make sure you meet the eligibility criteria outlined by the shared ownership scheme. Typically, you must have owned the property for a specific period, usually a minimum of 12 months.
If you’re considering selling your shared ownership property, you will need to contact your housing provider (housing association) to make them aware of your intentions. The next step is to appoint a reputable surveyor to value your home.
Once you’ve appointed a surveyor, you will need to pay a fee to have the property valued. This will give you an idea of what the property is worth and will enable your housing provider to work out the value of your share from the final sale price of the property.
If you’re happy with the valuation and decide to proceed with the sale of your property, you will need to complete and return a contract of sale. Within this document, you must include details of your chosen solicitor. If you purchased the property with someone else, you will both need to sign the contract of sale – this is a legal requirement.
You will need to liaise with your housing provider to arrange for photographs to be taken. Images sell properties and generate interest, so this is an important stage of the process.
Now it’s time to find a buyer. The good news is that there are often long waiting lists for Shared Ownership homes. There are always buyers looking to purchase their first property through the scheme.
When selling a shared ownership property, you have the option to sell the entire property or a percentage of your ownership share. If you decide to sell only a portion, the housing association or a housing provider often has the right of first refusal to find a buyer for that share.
The buyer of your property will go through a similar process that you went through when you bought the home, including a financial assessment with an independent financial advisor. If this is approved, and everything is agreed upon, you will receive written confirmation and your solicitor will be in touch.
As a general rule, you can expect to wait around 12 weeks for the sale to complete. Both your solicitor and the buyer’s solicitor will agree on an exchange and completion date. On the completion day, the buyer will pay the agreed-upon purchase price, and the property will be officially transferred to them.
If there are any outstanding charges, such as rent arrears or service charges, you’ll need to settle them before completion.
If you wish to talk through your shared ownership options, it’s always worthwhile speaking to the professionals. Here at Mortgage Decisions, we are always on hand to offer the very best advice. Contact us today, our friendly experts are happy to help.
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