There are several different kinds of property ownership in the UK.
Shared ownership ownership is one of them.
If you want to sell one, you may wonder whether it’s difficult to do so.
Keep reading to find out.
What is a shared ownership property?
A shared ownership property is owned by several people.
In most cases, part of it is owned by a housing association, and the rest is owned by a buyer(s).
The goal is to help people take their first step onto the housing ladder.
You’ll pay for a mortgage on the share you own (usually between 25% to 75%). And on the rest, you’ll pay rent.
Over time, the percentage of ownership can be increased in a process known as staircasing. This can be done in different increments.
Once you reach 100%, you will only pay the mortgage and no rent.
How many shared ownership properties are sold each year?
In a recent calendar year, 16,861 shared property sales were recorded in the UK.
Meanwhile, 19,386 new shared ownership properties were built during this same period.
Are shared ownership properties hard to sell?
A recent report from Rightmove suggested that shared ownerships sell 9 days faster than an average property selling times.
And demand for shared ownership is up by 37% from a year ago. This means that 2025 could be the ideal time to sell a shared ownership.
This data might be because shared ownership is more affordable, and thus a greater number of people are applicable to buy it.
Keep in mind that the documentation involved with a shared ownership may be trickier.
This can be because of the relatively complicated structure of the deal. But this doesn’t always mean that it’ll take longer to find a buyer.
What criteria must a shared ownership buyer meet?
You must meet certain criteria to buy a shared ownership property. This also applies for anyone who wants to buy your share. This includes:
- Have a household income of £80,000 or less per year (£90,000 or less in London)
- Be unable to afford all of the deposit and mortgage payments for a home that meets your needs
Then one of the following must also apply:
- They are a first-time buyer
- They have owned a home but cannot afford to buy one now
- They are creating a new household after a relationship breakdown or relocation
- They are already in shared ownership and are looking to move
- They own a home and wish to move but cannot afford a new home that meets their needs
You can speak to an expert in this area if you need guidance on meeting any of these criteria.
How to sell your shared ownership property
You’ll need to follow a few key steps to sell your shared ownership property.
Some of these might seem obvious, while others may not have crossed your mind.
Get a valuation on your house
Valuations are often done by surveyors.
Often, your housing association will recommend one, but you’re allowed to use one that you find. You should always ensure that they’re RICS certified.
Once you get a report from your surveyor, send it to the housing association.
It’s valid for up to three months, so don’t wait too long. If they’re happy with the quoted number, you’ll be sent a contract to sign indicating you also agree with the valuation.
Get an Energy Performance Certificate (EPC)
EPCs must’ve been completed within the past 10 years.
Otherwise, it’ll expire, and you need to get a new one.
Check the EPC register to see if your house already has one, if you’re unsure. You’ll pay a fee to get this document if one doesn’t exist.
Staging your house sellable
The next step is to stage your property look as attractive as possible.
This often involves repairing major issues such as holes in the roof or fading paint.
You’ll then need to bring in a photographer. This professional can enhance the selling points of the property.
Look at your mortgage options for your new home
Your existing valuation indicates how much you can realistically expect to get for your share of the house.
In turn, you can thus budget accordingly for your next home.
Combine your potential deposit with the amount you’re allowed to borrow, so you know what your price range is.
Market your house well
There is commonly an 8 – 12-week period where the housing association will look for a buyer on your behalf.
They may advertise on their platforms or reach out to people on their waiting lists. From then onwards, you may need to market it yourself.
Find a suitable buyer – and complete!
The new buyer will be subject to finance checks and eligibility checks one last time. If they pass, you can move to the conveyancing stage.
Your solicitor will complete the conveyancing process with the solicitor from the buying party. Together, they will agree on an exchange and completion date.
Can I sell my shared ownership house on the open market?
If you’ve staircased to 100% then you can sell on the open market.
But you may also be able to sell via a traditional estate agent if you own a smaller percentage.
When the property doesn’t sell within the 8 to 12 week period, you may have the option to go for an open market sale with an estate agent.
This will all depend on the terms of your lease and any restrictions put in place by your housing association.
Costs of selling a shared ownership property
You will encounter several costs when you sell a shared ownership.
Some of these may not apply to other types of sales. Make sure you include this in your budget.
Marketing fees
Marketing fees can be between £300 – £400 and in some cases are non-refundable.
These cover the cost of the housing association promoting and trying to sell your property.
Valuation fee
A valuation fee can cost anything from £200 up to £500 and is needed for your RICS surveyor to carry out their valuation.
Energy Performance Certificate
EPCs vary per provider but can set you back up to £120.
Legal fees
Legal fees can be a huge expense.
With shared ownership, you pay for both the housing association and your own legal expenses to be covered.
Leasehold packs
Leasehold packs cover an array of information for the buyer and will cost you up to £300 to have prepared.
Assignment fee
The final cost is the assignment fee which is applied only if the property sells.
This is often 1% of the property value minus the marketing fees. If your property does not sell, the other charges will still apply.
