How to Sell a Shared Ownership Property: A Step-by-Step Guide

Selling a shared ownership property works a little differently to a standard sale, mainly because your housing association is involved at several stages. The good news is that, once you understand the process, it’s very manageable.

This guide walks through each step, what it costs, and what to do if things don’t go entirely to plan.

What is Shared Ownership?

Shared ownership lets you buy a percentage of a property, usually between 25% and 75%, and pay rent on the remaining share to a housing association. If you’re new to the scheme, our shared ownership buying and selling guide is a good starting point before you get into the details of selling.

How Shared Ownership Works

You take out a mortgage for your share of the property and pay rent on the part you don’t own. Over time, many owners choose to buy further shares in a process known as staircasing.

What is Staircasing?

Staircasing is buying additional shares in your property over time, gradually increasing your ownership percentage and reducing the rent you pay. You can staircase in stages, up to and including full ownership in many cases.

Can You Sell a Shared Ownership Property at Any Time?

Yes, you can sell at any point, whether you own a small share or have staircased to 100%. The process differs slightly depending on how much of the property you own.

Selling Before You’ve Staircased

If you haven’t staircased to full ownership, your housing association usually has the right to find a buyer for your share first, during what’s known as the nomination period.

Selling Once You Own 100%

Once you own the property outright, you can usually sell on the open market like any other homeowner, without the housing association’s involvement.

What if You’re in Arrears on Rent or Service Charges?

Any arrears on rent or service charges typically need to be cleared before a sale can complete, as these are usually settled from the sale proceeds or beforehand. It’s worth speaking to your housing association early if this applies to you.

How to Sell a Shared Ownership Property: Step by Step

Here’s how the process usually unfolds, from checking your lease through to completion.

Step 1: Check Your Lease

What to Look for in Your Lease Before Selling

Your lease sets out the rules for selling, including how long the housing association has to find a buyer and any fees you may need to pay. It’s worth reading this carefully, or asking a solicitor to talk you through it, before you start the process.

Step 2: Contact Your Housing Association

What Happens During the Nomination Period

During the nomination period, your housing association has the right to try to find a buyer for your share, usually from their own list of applicants. If they can’t find one within the set time, you’re generally free to sell on the open market instead.

How Long is the Nomination Period?

This varies by housing association and lease, but it’s often around 8 weeks. Check your specific lease, as this can differ.

Step 3: Get a RICS Valuation

How to Find a RICS-Qualified Surveyor

Most housing associations require a valuation from a surveyor regulated by the Royal Institution of Chartered Surveyors. You can find one through the RICS website or ask your housing association for recommendations.

How Long is the Valuation Valid For?

A RICS valuation is typically valid for around three months, so timing your valuation with your expected sale timeline is worth considering.

What if You Disagree With the Valuation?

If you think the valuation is too low, you can usually commission a second opinion, though you may need to cover the cost yourself. It’s worth discussing any concerns with your housing association before doing so.

Step 4: Complete the Paperwork

What is a Management Information Pack and Who Pays for It?

A management information pack contains details about the lease, service charges and building for your solicitor and the buyer’s solicitor. It’s usually paid for by the seller, and costs can vary between housing associations.

Step 5: Market the Property and Find a Buyer

Who Can Buy a Shared Ownership Property?

If you’re still within the nomination period, buyers usually need to meet the housing association’s eligibility criteria. Once that period ends, you may be able to sell to any buyer, subject to your lease.

What if the Housing Association Can’t Find a Buyer?

If the nomination period ends without a buyer, you’re generally free to market the property yourself, including through an estate agent.

Selling on the Open Market After the Nomination Period

Selling on the open market can widen your pool of buyers considerably, though your lease may still set some conditions the buyer needs to meet. At this stage, the process of how to sell your house quickly is much the same as any other sale.

Step 6: Instruct a Solicitor

Why You Need a Solicitor With Shared Ownership Experience

Shared ownership sales involve extra legal steps compared to a standard sale, so a solicitor familiar with the process can help things run more smoothly and avoid delays. If some of the terminology is new to you, conveyancing terms explained is worth a read before you instruct one.

Step 7: Exchange and Completion

Once a buyer is found and the legal work is complete, exchange and completion typically follow the same pattern as a standard sale, with your solicitor coordinating the final steps.

What Does it Cost to Sell a Shared Ownership Property?

Selling shared ownership can involve a few more fees than a standard sale, so it’s worth budgeting for these in advance.

RICS Valuation Fee

This typically costs a few hundred pounds, depending on the surveyor and property size.

Housing Association Resale Fee

Many housing associations charge an administration fee for managing the resale process, which varies between providers.

Solicitor Fees (Yours and Theirs)

You’ll need your own solicitor, and there may be additional costs if the buyer’s solicitor has queries specific to the shared ownership lease.

Management Pack Fee

This is charged for producing the management information pack, and costs can vary quite a bit between housing associations.

EPC Costs

You’ll need a valid Energy Performance Certificate, as with any sale, if you don’t already have one in date.

Abortive Fees if You Pull Out

Some housing associations charge a fee if a sale falls through after certain work has already been done, so it’s worth checking this in advance.

Back-to-Back Staircasing: Staircase to 100% and Sell Simultaneously

What is Back-to-Back Staircasing?

Back-to-back staircasing means buying the remaining share of your property and selling it on the open market in one combined transaction, rather than as two separate steps.

How the Process Works

Your solicitor coordinates the staircasing purchase and the onward sale to complete on the same day, so you never technically own 100% for any length of time before selling.

Pros and Cons of Back-to-Back Staircasing

This can widen your buyer pool and potentially achieve a better price, but it adds legal complexity and may cost more in fees than a standard resale.

When Does it Make Financial Sense?

It can be worth considering if selling your part-share alone would significantly limit your buyer pool or affect your asking price, though a solicitor or financial adviser can help you weigh this up properly.

What Happens if Your Property Has Cladding or Building Safety Issues?

EWS1 Forms and Shared Ownership Sales

If your property is in a building with cladding, buyers’ lenders may require an EWS1 form confirming the external wall system has been assessed. This can add time to the sale process.

How Building Safety Issues Can Affect Your Sale

Building safety issues can make it harder to find buyers whose lenders will approve a mortgage, so it’s worth flagging this early with your housing association and solicitor.

Selling a Shared Ownership Property: What Else to Consider

Can You Transfer a Shared Ownership Property?

Transferring your share to another person, such as a family member, is possible in some circumstances, but usually requires the housing association’s consent.

Can You Sell One Shared Ownership Property and Buy Another?

Yes, this is common, and many housing associations have processes to support moving from one shared ownership property to another.

What Happens to Your Mortgage When You Sell?

Your mortgage will usually need to be repaid from the sale proceeds, in the same way as with any other property sale.

What to Do if You’re Unhappy With the Process

Making a Complaint to Your Housing Association

If you feel your housing association isn’t handling your sale reasonably, you can usually raise a formal complaint through their complaints procedure.

Escalating to the Housing Ombudsman

If your complaint isn’t resolved to your satisfaction, you may be able to escalate it to the Housing Ombudsman, who can independently review how your case has been handled.

Ready to Sell Your Shared Ownership Home?

Selling a shared ownership property involves a few extra steps, but with the right guidance, it doesn’t need to be stressful.

If you’re ready to move, sell your house quickly with Purplebricks, or book your free valuation to get started.

FAQ

Is it difficult to sell a shared ownership property?

It can take a bit more coordination than a standard sale, mainly due to the housing association’s involvement, but it’s a well-established process.

What is the 6 month rule for selling property?

This isn’t a shared ownership-specific rule, but some mortgage lenders won’t lend on a property that’s been owned for less than six months. It’s worth checking with your solicitor if it affects your situation.

How much is my shared ownership worth?

This is based on a RICS valuation of your share, reflecting current market value rather than what you originally paid.

What happens when you own 100% of shared ownership?

Once you’ve staircased to full ownership, you own the property outright and can typically sell it like any other home, without the housing association’s involvement.

Can I sell my shared ownership property before staircasing to 100%?

Yes, you can sell your existing share at any point, though the nomination period process will usually apply first.

Do I pay capital gains tax when selling a shared ownership property?

If it’s your main home, private residence relief usually applies in the same way as any other property, though it’s worth checking your specific circumstances with an adviser.

What happens if my shared ownership property has decreased in value?

You may need to cover any shortfall if your mortgage is worth more than the sale proceeds, so it’s worth understanding your numbers before marketing the property.

Can I sell my shared ownership property to a family member or friend?

This may be possible, but usually requires the housing association’s involvement or consent, so check your lease and speak to them early on.