As a Shared Owner, there are specific rules and procedures that apply when selling your home. Below is a guide to help you understand what to do if you want to sell your Shared Ownership property with South Lakes Housing.
Things to consider
If you're considering selling your Shared Ownership home, there are a few important steps and considerations to ensure the process goes smoothly.
Understand your right to sell
As a Shared Owner, you have the right to sell your home at any time, but the process differs from a traditional home sale. It’s important to remember that you don’t own the full property—you only own a share of it—and that share is what you will be selling. Here are a few key points to keep in mind:
You sell the share you own
You can only sell the share of the property that you own. South Lakes Housing retains the remaining share, and the buyer will either purchase your share or, in some cases, South Lakes Housing may find a new buyer for your share.
South Lakes Housing has a right of first refusal
Before you can sell your share on the open market, you must offer it to South Lakes Housing (or another approved housing provider) to buy back. This is a common feature of Shared Ownership agreements.
Eligible buyers
The buyer must meet the eligibility criteria for Shared Ownership. This is to ensure that the property remains affordable and that the buyer can afford to purchase the share you are selling.
Notify South Lakes Housing
The first step in selling your Shared Ownership home is to notify us here at South Lakes Housing of your intention to sell. This is an important step, as they will need to be involved in the process.
Contact us
You can start by getting in touch with our team. We will inform you of the exact process, including the forms and information you need to provide.
Right of first refusal
South Lakes Housing will review your request and assess whether we wish to buy back the share you own. If South Lakes Housing doesn’t buy the property, we will give you the green light to market your share to eligible buyers.
Get a RICS valuation
Once South Lakes Housing confirms that you can proceed with selling your share, the next step is to get a Royal Institution of Chartered Surveyors (RICS) valuation of your property.
Why a Valuation is needed
A professional, independent valuation ensures that the price you ask for your share reflects the current market value of the property.
How it works
The valuation report will assess the value of the whole property, and based on the percentage you own, it will determine how much your share is worth. This valuation is usually required by both South Lakes Housing and potential buyers.
Market Your Property
Once the valuation is complete and you have received approval from South Lakes Housing to proceed, you can begin marketing your share to potential buyers.
Marketing to eligible buyers
Shared Ownership properties can only be sold to eligible buyers, so we ask you to work with us at South Lakes Housing to ensure that the right buyers are found. We can assist you in marketing the property to eligible candidates who meet the Shared Ownership criteria.
Advertising
South Lakes Housing can provide support with advertising your home, but you may also choose to list it with estate agents that specialise in Shared Ownership properties.
Finding a Buyer
After you’ve marketed your property, potential buyers will be assessed for eligibility. These buyers must meet the eligibility criteria for Shared Ownership:
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They must be first-time buyers or those who have previously owned a property and are unable to afford to buy a home outright.
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They must meet certain income limits to ensure the property is affordable
(typically less than £80,000 per year for individuals, £90,000 in London)
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They must demonstrate the ability to secure a mortgage for the share they wish to purchase.
South Lakes Housing will help verify that any potential buyers meet these eligibility requirements and ensure that the sale proceeds smoothly.
Accepting an offer and completing the sale
Once you have a buyer, and all parties are satisfied, you can proceed with the sale. Here’s what you’ll need to do:
Agree on the sale price
The buyer will purchase the share of the property you own at the agreed price, which will be based on the RICS valuation.
Legal process
Both you and the buyer will need solicitors to handle the legal aspects of the sale. South Lakes Housing will also be involved in the legal process to ensure that the sale complies with the terms of your lease and that the buyer is eligible for Shared Ownership.
Completion
On completion day, the buyer will pay for the share of the property you’re selling, and ownership of that share will transfer to them. South Lakes Housing will update the lease to reflect the new ownership details.
What happens after the sale?
Once the sale is completed, you’ll receive the proceeds from the sale of your share. Here’s what happens next:
Settle your mortgage
You may need to pay off any outstanding mortgage on the share you are selling.
Rent reduction
If you sold all of your share, you will no longer have to pay rent to South Lakes Housing. If you sold part of your share but still own a portion, your rent on the remaining share will be adjusted accordingly.
Moving out
If you’ve sold all your share and are moving out, you’ll need to vacate the property in accordance with the terms of your lease.
Still inhabiting?
If you’re selling a portion of the property and you’re still living there, you’ll continue to pay rent on the remaining share and may be subject to some additional legal paperwork for the new owner.
Important steps to consider
If you're considering selling your Shared Ownership home, there are a few important steps and considerations to ensure the process goes smoothly.
As a Shared Owner, there are specific rules and procedures that apply when selling your home. Below is a guide to help you understand what to do if you want to sell your Shared Ownership property with South Lakes Housing.
Fees and Costs Associated with Selling
Selling a Shared Ownership property involves some costs. These may include:
Valuation fees
You’ll need to pay for the independent RICS valuation of your property.
Solicitor fees
Both you and the buyer will need solicitors to handle the sale. These fees will vary depending on the complexity of the transaction.
Estate agent fees
If you choose to use an estate agent to help market your property, you will need to pay their fees (if applicable).
