A Comprehensive Guide to Selling a Shared Ownership Property in the UK

Selling a shared ownership property can be a daunting process, but it doesn’t have to be. Whether you’re looking to upgrade to a larger property, relocate to a different area, or simply cash in on your investment, there are plenty of opportunities to sell your shared ownership home in the UK. In this guide, we’ll explore everything you need to know about selling a shared ownership property, including what happens when you sell, how to prepare your home for sale, and tips for navigating the market.

What is a Shared Ownership Property?

First things first, let’s define what we mean by shared ownership property. In the UK, shared ownership schemes are a way for people to get onto the property ladder who may not be able to afford to buy a home outright. Essentially, you purchase a share of the property (usually between 25-75%) and pay rent on the remaining share to a housing association or other provider.

Shared ownership properties are typically sold through a housing association, and the resale process can be more complicated than selling a traditional home. However, with the right guidance, selling a shared ownership property can still be a successful and lucrative experience.

What Happens When You Sell a Shared Ownership Property?

When you decide to sell your shared ownership property, there are a few things you need to know about the process. Firstly, you’ll need to notify your housing association or provider that you’re planning to sell. They’ll have the right to buy back your share of the property, or they may choose to find a buyer for the property themselves.

If your housing association chooses to find a buyer, they’ll typically have a period of time (usually around 8 weeks) to do so. During this time, you’ll be unable to sell your property on the open market. If your housing association is unable to find a buyer during this period, you’ll be free to sell your property independently.

Once you’ve found a buyer, you’ll need to inform your housing association of the details of the sale. They’ll then have a period of time (usually around 8 weeks) to decide whether or not they want to buy back your share of the property. If they choose not to, you can proceed with the sale as normal.

Preparing Your Shared Ownership Property for Sale

Before you put your shared ownership property on the market, there are a few steps you can take to ensure a successful sale. Firstly, you’ll need to get your property valued. This can be done by a surveyor and will give you a good idea of how much your property is worth.

Next, you’ll need to ensure that your property is in good condition for viewings. This may involve some repairs or improvements, such as painting or replacing worn carpets. You’ll also need to declutter your home and make it as presentable as possible.

Finally, you’ll need to market your property effectively. This may involve hiring an estate agent, or listing your property on online platforms such as Zoopla or Rightmove. Make sure that you have plenty of high-quality photos and a detailed description of your property to entice potential buyers.

Tips for Navigating the Market

Selling a shared ownership property can be more complex than selling a traditional home, but there are some tips you can follow to make the process smoother. Firstly, make sure that you’re aware of any restrictions or requirements set by your housing association or provider when it comes to selling your property. These may include restrictions on how much you can sell your property for, or requirements around how long you’ve lived in the property before selling. Make sure you’re fully informed before you start the selling process to avoid any unexpected surprises.

Another tip is to consider offering your property for sale on a part-buy, part-rent basis. This may appeal to buyers who are interested in shared ownership, but may not be able to afford to purchase a property outright. This can also make your property more attractive to buyers who are looking for flexibility in their housing options.

It’s also important to be prepared for a potentially longer sales process when selling a shared ownership property. As mentioned earlier, housing associations often have the right to buy back your share of the property or find a buyer themselves. This can add extra time to the sales process, so be prepared for this possibility and plan accordingly.

Finally, be aware that the value of your property may be affected by the fact that it is a shared ownership property. Some buyers may be put off by the fact that they will have to pay rent in addition to their mortgage, while others may see the shared ownership scheme as a way to get onto the property ladder. Make sure that you price your property fairly and take into account any factors that may affect its value.

Conclusion

Selling a shared ownership property in the UK can be a complex process, but with the right preparation and guidance, it can also be a successful one. Make sure you’re aware of the rules and requirements set by your housing association or provider, and take steps to prepare your property for sale. Consider offering your property on a part-buy, part-rent basis to appeal to a wider range of buyers, and be prepared for a potentially longer sales process. With these tips in mind, you can navigate the market with confidence and make the most of your shared ownership investment.