Shared ownership is a cross between buying and renting, making it another way to buy your home. Also known as part buy, part rent, it’s designed to make it easier than ever before for first-time buyers to take their first steps onto the property ladder.
As part of a shared ownership scheme, the housing association owns part of your home. However, you are responsible for decorating it and keeping it up together. You will never be asked to sell your home, the choice is entirely yours if you decide to sell and move on to your next home.
So, why exactly are shared ownership properties so appealing? Buying a percentage of a property is a lot easier than having to find a large deposit for a house, and this type of scheme comes with smaller deposits and smaller mortgages, meaning homeownership becomes more accessible and manageable.
If you’re thinking about selling a shared ownership property, you’re in the right place. We’ve created a helpful guide outlining everything you need to know about how to sell a shared ownership property.
The first step you should take when it comes to selling a shared ownership property is to let your housing provider know that you now wish to sell your home.
Your housing provider will then ask you to arrange a valuation of your property by an RICS accredited surveyor of your choice. Many housing associations also have a list of trusted surveyors that they use, which they will be happy to provide contact details for.
Just like any house sale, it’s important to get a valuation for your property. This is what will determine the market price of your home, providing the housing provider with the figures they need to work out your share of the property.
If you are happy with the percentage amount you will receive from the sale of your property and you decide that you would like to proceed, you will need to complete and return a resale application form. This will include, for leases with nomination periods, how long you would like your housing provider to market your property before you can advertise on the open market.
Your Housing Provider will also require a current Energy Performance Certificate (EPC) for your property. If you don’t have a copy you can check on the Governments EPC Register website to see if there is one available to download. If it is now out of date, then you will need to instruct a surveyor to produce a new one for you.
Now for the most important part, finding a buyer for your home. Once you have sent the valuation, completed resale application form, an EPC & some photographs of your home to your housing provider, they will be ready to market your property with the Help to Buy Agent for your area.
Your property will be advertised as per your chosen nomination period (resale option 1 or 2). If after this period a buyer is not found through the Help to Buy Agent, you can then sell privately through an estate agent of your choice.
Once you have a buyer, if they are purchasing a share in the property, they will need to be financially assessed and approved by your housing provider.
Once a sale has been agreed upon, a Memorandum of Sale will be produced outlining the sales particulars and the solicitors’ details for both the buyer and seller. It is important to choose a solicitor that is familiar with Shared Ownership sales as this will make the selling process much smoother for all parties.
Here at VIVID, we’re a leading provider of affordable homes and housing-related services in the south of England. We can help you with all of your shared ownership property needs. If you have any questions about shared ownership and how this buying option can benefit you and your family, please do not hesitate to get in touch.