Selling your Shared Ownership Home
Selling your Shared Ownership home is also known as a resale - as you are selling your share of your home to someone else.
As a homeowner you can sell your Shared Ownership property like any other property whenever you choose to do so.
However, if you haven’t staircased to 100% ownership, there are some restrictions on the sale of these properties. This is to ensure the properties remain available to people in need of affordable housing.
There is a procedure to be followed when selling your Shared Ownership property, which will be set out in your lease. We strongly advise you to read the terms of your specific lease, they vary and may contain information that only apply to your property. If you cannot find your lease, check with your solicitor, or additional copies can be purchased directly from us.
This page provides you with all the information regarding selling your Shared Ownership home. Please note, the contents of this guide are for guidance only, may be subject to change and is not exhaustive.
The Resale process at a glance
Step 1 Request a valuation
Step 2 Notify us With Your Intention to Sell & Property Information
Step 3 Advertising your Home
Step 4 Arranging viewings and allocation process
Step 5 Reservation
Step 6 Instructing solicitors and conveyancing process
Step 7 Leasehold Property Enquiries (LPE1)
Step 8 Exchange
Step 9 Completion date
Selling your shared ownership home in more detail...
Step 1
Stage 1 Request a Valuation
To start the process of selling your home you first need to choose a RICS (Royal Institution of Chartered Surveyors) qualified surveyor to value your home. You can choose from our panel or select your own.
If you decide to choose your own surveyor, then please advise us (in accordance with your lease), as this must be an independent expert agreed between us and yourself.
The initial valuation and subsequent extension letters are valid for a period of three months from the date of issue. If your home is not formally under offer within this time, you may need to obtain a further updated valuation.
Please note, we will not accept an estate agent’s market appraisal in place of a valuation.
Made some home improvements?
If you have carried out improvements that have added to the value to your home (not all improvements do), please inform the valuer at the time of inspection so they can take these into account. The valuation report must signify both the current price and price before works. Please note that you will only see the full benefit of all improvements if you staircase to 100% ownership.
Please remember that you need to request permission and written approval from us before carrying out any major improvements to your home. You will have had to provide us with estimates, quotations, plans and any required local authority planning approval for the permission to be granted. An admin fee may apply
Step 2
Stage 2 Notify us With Your Intention to Sell & Property Information
When you are ready to sell, you need to complete our Intention to Sell form
What you will need...
RICS valuation
EPC Certificate
You will need to confirm that you have completed a RICS valuation and upload the RICS Valuation report to the form.
This certificate ranks the energy efficiency of your home. You may already have one from when you first bought your home from us. Depending on the age of your home, you may also be able to download it from www.epcregister.com.
Marketing Property Information
This is used by our marketing team to generate interest in your property. Include as much information as you can, some examples include:
- Proximity to local schools, shops, gyms, etc
- Local transport links
- Benefits to the home (good energy rating, south facing garden, extra storage)
- Tell us about the area/ development
- Warranties
- Appliances included in the sale
Property photos
Upload your best landscape images of both internal and external photographs of your home for our marketing purposes. These assist in selling your home, therefore you should endeavour to have your home looking its best, great presentation and first impressions can make all the difference! .
Hints & Tips for taking photos of your home
- Look at the decoration and touch up paintwork if required
- Clear any clutter - remove items from worktops and other surfaces. Remove pets and their bowls / beds
- Clean the hob and make sure you have put away crockery and pans
- Open curtains and blinds – you want your home to look light and airy
- To make the most of natural light, take photos at the brightest time of day, usually the morning. Switch up internal lights as they can create glare
- Tidy the bedrooms and put away any clothes
- Tidy children’s toys
- Fluff up cushions and pillows
- Blitz the bathroom, tidy away toiletries and put toilet seats down
- Take outside photos on a bright day and take several exterior shots
- Make sure you don’t have dustbins in the pictures
- Finally, take shots from a kneeling position to make the room look bigger. Try it - it really works! Take several pictures at different angles in each room, ensuring all photos are taken horizontally
Step 3
Stage 3 Advertising Your Home
Once we’ve received all the documents (your valuation report and approved marketing information and photos) we can then start the process of selling your home. Our team will use the information and photographs you’ve given us to prepare our marketing information.
We will promote your home on the following websites:
- Share to Buy website - www.sharetobuy.com
- Love Living Homes website - lovelivinghomes.co.uk
We will send you the links to these once they are live on the website. Please notify us if any of the details are incorrect or if you would like to add further information.
Once you are happy with the listings, you will be required to complete and send us the Property Misdescription Act Certificate (PMAC). This is to ensure we have the correct details of your property. Only once this is complete, will the marketing team do further promotional activities to attract a buyer.
If we cannot find a buyer during the 8-week nomination period (or the period detailed in your lease), you are free to sell the share that you own or the property 100% outright through an estate agent.
We have up to 8 weeks (depending on your lease) to nominate a buyer for your home – this is known as the ‘nomination period’. During this time, we’ll encourage people to apply to us if they wish to purchase your home. If we have more than one suitable applicant, we will allocate it based on our first come first served policy. This is the same process used when you first bought your Shared Ownership home.
Complete the Property Misdescriptions Act Certificate (PMAC)
What is a Memorandum of Sale?
Memorandum of Sale (MOS) is a document recording the prospective buyer’s interest in purchasing the property and the seller’s terms of the sale. It relates to the ‘sale agreed’ step when purchasing a property.
While it’s not a legally binding contract, it acts as written confirmation that a price has been agreed and declares the intention of both parties to complete the sale. The document will include any special conditions or remarks that deviate from the standard conditions of sale.
Selling with an Estate Agent
What instructions should I give to my estate agent selling my home?
After the nomination period has ended, you may instruct your estate agent to find either a purchaser for your share or an outright purchaser to buy your property. You’ll need to ensure you have enough funds to allow for legal fees (for both your own and our solicitors) and your estate agency fee.
Information to provide to your chosen Estate Agent…
- You will need to make your estate agent aware of the price they may sell your share for and that the property cannot be sold for more than the RICS (Royal Institution of Chartered Surveyors) valuation
- If you decide to sell your share your buyer will need to be eligible for Shared Ownership and complete our application form. (just as you did when you bought your home)
- The Prospective buyer will need to complete a financial assessment. Please be aware that we have the right to reject any perspective purchaser if they do not meet our affordability criteria. Please provide our contact details to your estate agent so they can liaise with us directly
- If your estate agent finds a buyer who wishes to purchase 100% of your home, we will transfer the remaining shares to you, and you will in turn transfer the 100% leasehold/ freehold to the purchaser. Both these transactions will take place simultaneously, and the sales proceeds will be split in line with the share owned by you and us. Please note: TCH still need to approve 100% purchasers. TCH will still need to approve the buyer on this basis, but the information we will require will be less onerous.
- You are likely to incur higher legal charges when you sell outright as the solicitors will need to draft additional staircasing and transfer documents for you to sign.
- Once the sale has been agreed, your estate agent must provide us with a copy of the Memorandum of Sale to enable us to instruct our solicitors
- Your appointed estate agent will be responsible for progressing the sale and should be your first point of contact throughout the transaction.
- A TCH admin fee will be payable and collected on completion of the transaction.
Step 4
Stage 4 Arranging Viewings and Allocation Process
We’ll encourage interested parties to contact you directly to arrange a viewing of your home.
Consent to share your contact details with potential buyers will be required at the point of intention to sell in accordance with GDPR guidelines.
Applicants who then wish to proceed with a purchase will need to contact us directly. We will then request financial details from the buyers in order to assess their application for affordability and eligibility.
Applications will be accepted on a first come first serve basis and successful applicants will be issued with an offer.
You are not allowed to sell your share for more than RICS (Royal Institute of Chartered Surveyors) valuation. You can, however, accept lower offers for your share if you are willing to accept it.
Please note this would not be applicable for the shares held by us.
Seller Etiquette for Showing Your Property
When it comes to selling your own home, the way you prepare and carry out your viewings can make all the difference. Below are tips of how to carry out and prepare for a successful viewing and get your house sold.
Preparing for viewings
It goes without saying that tidying the house is one of the most important things you can do before a viewing, but not everyone has the time for a full-on deep clean before every viewing. Here are some options for getting things ready whether you’re an early bird or you’re in a last-minute rush.
- Reorganise – If you only have time for a few quick fixes, stowing miscellaneous items in a cupboard might be sufficient, but some buyers will want to look at these storage spaces too. If you have time to really reorganise, invest in some decent boxes and tidy your things away, neatly stacking them in the loft or even hiring a small storage unit. This is also a great opportunity to get rid of the things you don’t want to take with you when you move
- Fix obvious problems – If there are some things that look less-than-great but are easy to fix, tackle them now. Door squeaks when you open it? Put some oil on the hinges. Fence post is wonky. Hammer it back in. Fixing any smaller issues quickly will help people form a better overall first impression of your home
- Pets - You love your pets but your potential buyers may not. Ask a friend or neighbour to take care of them during a viewing so as not to distract (or scare) a potential buyer from your property
- Spring clean - Give your home a good dust and hoover prior to the viewing
- Gardening - Don't forget your garden (if applicable). For many people the garden is one of the biggest selling points. Tidy away any rubbish, weed and cut the grass, and put out some potted plants to soften patios and yards. A seasonal fertiliser will add colour to a tired lawn. Be sure to cut back any boisterous bushes, particularly in smaller gardens
- Fresh Air - Open windows prior to the viewing to air the property. If possible, light a fragranced candle or use a room diffuser
- Lights - Turn on the lights, especially if it’s a gloomy day
During viewings
- It is a good idea to give your buyers a brief of all the main features of the house, including any important information. The house’s distance from the supermarkets and schools, the fixtures that will come with the house, the surrounding area – are all useful things to mention
- Point out views/ aspects and orientation if these are beneficial to the property.
- When conducting a viewing, always stay alert and if possible, ensure there is someone else that you know present. Be friendly but professional and avoid giving out too much personal information. If the potential viewer comes back without an appointment, do not feel you have to let them into the property just because you have met them once
- Know who you're showing around! When you greet buyers at the door be sure to welcome them warmly and keep a friendly tone throughout the viewing to made them feel at ease. Once you know more about your visitor’s wants and needs, be sure to highlight certain rooms or aspects of the house that will appeal to their requirements
- Be hospitable everybody has their own list of likes and dislikes when it comes to their ideal home. No two individuals have the same tastes in home décor so you must be open to accommodating buyers own ideas and help them think of ways in which they can make your house their own. Leave all emotion at the front door and remind yourself you are there to sell
- To some degree, the layout of your property will affect the order in which you show people around your house. However, where possible you should always try and get people to the best part of your home as quickly as possible. Got a great view from a bedroom? Start with the upstairs first. Got an amazing garden space? Take people straight to it. It’s easier to get people to overlook a negative if they’ve already fallen in love with another part of the house.
- If possible allow the buyers to enter each room before you so you are not standing in front of them as they walk in, stand back and make sure you point out the features of each room.
- Always accompany people around the viewing in the first instance. This gives you chance to answer any questions, point out the positives of your home, and guide people to the best rooms/features first. However, once you’ve finished the ‘grand tour’ of your home always let viewers have the option to have a wander around on their own if they wish. It will be much easier for people to picture themselves living there without you shadowing their every move. Just be sure to make sure any valuables are safely locked away.
- Give an overview of the property and the selling points- what would make it desirable for the potential buyer. Most people tend to be a little shy about pointing out the good parts of their home. They don’t want it to seem like boasting or make the viewer feel like they are being sold to. However, when done correctly, it can be very effective at turning viewings into offers. For example, don't just tell viewers that “this is the garden” tell them “the garden is south facing so it gets the sun all day, we’ve had some great evenings sat on the patio having a few drinks with friends while watching the sunset.” You’re not pushing anything on to people, you’re simply pointing out how you’ve enjoyed the space. Think about the parts of your property that you’ve loved the most and think how you can best mention them to viewers.
- Let buyers look around independently once you have shown them around.
- Ask them if they have any questions before they leave.
- Let them leave. When the viewing is over, don’t hold prospective buyers ransom by asking them awkward questions. This is not the right time for enquiries about their interest, if they are going to put in an offer, or what they thought of the new bathroom etc. Thank them for coming and say you look forward to hearing from them and then let them leave
Step 5
Step 5 Reservation
When an applicant wishes to reserve your property, they will contact us directly to discuss next steps. We will allow them 7 days to provide any required information for final sign off and approval purposes.
Our allocations policy will apply.
During this period all parties will be required to complete mandatory Anti Money Laundering (ID) checks. You will be advised as soon as your buyer/s have been fully approved to purchase.
Buying more shares…
It is possible for the buyers to purchase a larger share than you currently own. This will involve partial staircasing and simultaneous resale.
What if my buyer wants to buy more shares than I currently own, but not 100%?
You must sell your home for at least the share you currently have. For example, if you currently own 35% of a Shared Ownership property you are selling, the next buyer must at the very least buy this existing share. They cannot buy anything less than 35% in this example.
However, if they choose to, the buyer can decide to buy a bigger share. We will assess the buyer’s application based on the share they wish to buy. You will be required to partially staircase to whatever share the buyer wishes to purchase and simultaneously sell it to them. On completion, you will receive monies for the share you currently own and we will receive monies for the additional shares purchased
Example:
You currently own 35% of Shared Ownership property valued at £250,000, and the buyer wishes to purchase additional 15% shares, so on completion they own 50% shares in total. In the above example, on completion of the sale you will receive £87,500 for your 35% share and then we will receive £37,500 for our 15%.
Step 6
Stage 6 Instructing Solicitors and Conveyancing Process
Once the buyer has been accepted, both you and your buyer will need to provide us with your solicitor’s details. At this point we will issue the Memorandum of Sale (MOS) to all parties so that the sale can progress.
What solicitors can I use?
It can be helpful to ensure you appoint a solicitor with previous experience in completing on Shared Ownership transactions. You may decide to use the same solicitors that acted on your behalf when you purchased your home, or you may decide to instruct a different firm.
You should make sure you get a quotation of the likely costs before you appoint a solicitor, and we recommend doing this early in the process. You can find a solicitor near to you that is qualified to offer conveyancing, on The Law Society’s website.
It is important you formally instruct your solicitors as soon as the buyer has been accepted so they can start conveyancing process. You should also send any monies for fees to your solicitor straight away, as if it isn’t done right at the beginning of the process, it can result in unnecessary delays.
When buying a shared ownership property, you can purchase between 10-75% of the market value, depending on how much you can afford, then pay a low monthly rent on the rest of the share.
You can buy bigger shares, also known as staircasing, later down the line when you can afford to.
If we are not the freeholder of the block or if there is a wider estate management company in place, your solicitor may need to contact the freeholder for additional information. The freeholder/management company is likely to charge a fee for providing information and you will be responsible for this cost. TCH do not administer or set the charge for any external management packs.
If your buyer is obtaining a mortgage, their lender will require a mortgage valuation to be carried out, and you will be asked to allow access to your property for this purpose. We will give your details to the surveying company so they can contact you directly for access. Please arrange for this as soon as it is requested to avoid delays.
Step 7
Step 7 Leasehold Property Enquiries (LPE1)
During the conveyancing process, your solicitor will issue draft contract papers to the buyer’s solicitors.
What is a LPE1?
LPE1 enquiries, more formally known as Leasehold Property Enquiries, are, as they say on the tin; standard set of enquiries pertaining to a leasehold property. In some cases, the freeholder/landlord can impose certain requirements on the property to pay ground rent and/or service charge, which can bring about the importance of LPE1 enquiries to your conveyance.
On review of these documents, the buyer’s solicitors will raise LPE1* and general enquiries with your solicitor. In the meantime, the buyer’s mortgage offer will be issued and provided to our solicitors for our approval.
How can I ensure the transaction progresses as quickly as possible?
Good communication really is the key from the day you go under offer until the day you complete. To ensure the transaction progresses smoothly, please ensure you pay the relevant fees as promptly as possible to avoid unnecessary delays.
Furthermore, please stay in regular contact with your solicitors for updates/to sign relevant legal documents, and to agree dates for exchange of contracts and completion of the sale. Your solicitor or conveyancer will probably ask you for a lot of information during the process, and it’s important to fill out, review, sign and return everything quickly and efficiently. While, we can’t tell you exactly how long it will take for the transaction to complete, we can keep you informed as developments are made.
Step 8
Stage 8 Exchange
Once the buyer’s mortgage offer has been approved by us and all legal enquiries answered, you should be able to exchange contracts. At the point of exchange, both parties are contractually bound to finalise the sale/purchase on the agreed completion date, which is agreed between you and the buyer.
When we have been notified of the agreed completion date, we will provide a statement of account. Please note any refunds will be arranged after completion and arrears will be taken at point of completion. The statement will also include any monies due from the buyer for the rent and service charges.
Step 9
Stage 9 Completion Date
Your solicitor will let you know once completion has taken place. You should then release keys directly to the new owner/s and any parking permits (if applicable) to the buyer.
Please ensure you have instructed your bank or building society to cancel your existing Direct Debit payments in relation to your property and inform utility suppliers that you have moved and provide final meter readings. Leave any handover documents, instruction manuals that can be useful for the buyers, information regarding utility meters, bin and bike stores locations (if any), at the property.
Useful items to discuss at handover
• Location of meters
• Parking areas
• Bike/bin-store & codes
• How to use heating/door entry phone systems
• Handover any documentation & warranties etc
Tip:
Remember to record any required meter readings and contact the gas, electricity, and water companies as well as the local council tax office, to let them know you have vacated the property.
Cost of Selling
The Cost of Selling Your Shared Ownership Home
Please note the costs below are only a guide to the costs involved in selling your Shared Ownership property. Costs may vary
As with all property sales, you will have expenses to pay. Before deciding to sell your home, it is worth investigating the full costs involved and consider carefully when to market your property. Here are some of the costs that you can expect.
| Costs | Description |
|---|---|
| RICS Valuation (Valid for 3 months) | From £264. At the start of the process, when you are thinking of selling. |
| RICS Valuation Extension | Approx £114. Likely to be required at least once during the process to keep the valuation in date. Some surveyors include it in the initial price if a Memorandum of Sale has been issued. |
| LPE1 – Leasehold Pack | £150 + VAT. Payable once solicitors are instructed. Produced by Town & Country Housing. |
| Leasehold additional enquiries fee (LPE1) | £50 + VAT. Payable when additional enquiries are raised by TCH. |
| Managing Agent Pack | Approx £350 - £500. Required if the property is part of an estate managed by an external agent. |
| TCH Legal Fees | £264 + VAT. Payable to your solicitor once instructed. Non-refundable if the transaction is aborted. |
| Additional TCH Legal Fees | £295 + VAT. Payable when selling your property outright and staircasing to 100% ownership. |
| Notice of assignment, transfer, mortgage, or charge | £90 per notice. Confirm applicable fees with your solicitor. |
| Copy of your lease | Up to £42. £30 for PDF version, £42 for both PDF and hard copy. |
| Staircasing fee (selling 100% of your home) | £330. Payable at the start of the sale process. Non-refundable if transaction does not proceed. |
| Service Charge Retention | £50 - £1000 (variable). Held by your solicitor for the buyer's future obligations. |
| Your Solicitor's Fees | Approx £1,500. Obtain a quotation from your solicitor for payment details. |
| Money Transfer Fee | £40 + VAT. Payable on completion. |
| TCH Nomination Fee | 1% + VAT of Full Market Value. Payable on completion if TCH nominates the buyer. |
| TCH Administration Fee | £250 or £300 + VAT. £300 if no nomination fee stated and TCH nominates the buyer. £250 + VAT if an estate agent nominates. |
| Estate Agency Fees | Approx 1% + VAT. If selling through an estate agent outside of the nomination period. |
| Stamp Duty | Varies. Check with your solicitor for applicable charges, especially if selling 100% of the property. |
Valuation Costs ...
Under the terms of your Shared Ownership lease, you require a RICS (Royal Institution of Chartered Surveyors) valuation to determine the market value of your home. You are liable for the cost of this valuation. The cost varies, depending on the valuers used therefore please do your own research and obtain quotes from different valuers. The valuation is only valid for 3 months and if your property has not sold, you will be required to provide extension to the valuation, incurring additional charge. Please be aware that the valuation may change from the original valuation in a fluctuating market.
Our panel of RICS (Royal Institution of Chartered Surveyors) & Fees
| Company | Contact Details | Valuation cost (prices include VAT) | Extension cost (after 3 months) (prices include VAT) |
|
|---|---|---|---|---|
| Extension Letter no change in Value | Extension Letter Change in Value | |||
| Jenner Jones | 01892 726585 / 01892 726581 | £390.00 | No fee | £114.00 |
| Copeland & Yussuf | 0203 0058660 | £264.00 | 1 extension free | £120.00** |
| Rapleys | 0370 7776292 | £900.00 | £360.00 | £360.00 |
* No fee if Memorandum of Sale (MoS) has been issued matching the original valuation. MoS will need to be presented.
** £120 (inc VAT) for a desktop valuation (extension to original) in which the property would be revalued but not reinspected and would provide a further 3-month validity.
Rent and service charge arrears
If you are in arrears, this will need to be cleared before completion can take place. This can include an underpayment for past service charges.
What is an EPC?
Energy Performance Certificates (EPC) provide important information on the existing energy efficiency of your home and make recommendations on how you could improve its energy efficiency. It is a legal requirement to commission an EPC before selling your home; failure to do so will prevent the sale.
You can search the central EPC register at www.epcregister.com if you already have a valid EPC. If your property's EPC is not showing, you will need to find an accredited assessor to produce an EPC and you will be responsible for the cost.
As a leaseholder of the property, you are responsible to cover the cost of this service. You can pay this fee via your solicitors or directly to TCH by contacting our Homeownership team.