Step-by-Step Guide to Selling a Shared Ownership Property

Selling a Shared Ownership home is a common next step for many homeowners. Whether you’re relocating for work, upsizing, downsizing or moving on to full ownership elsewhere, the process is entirely possible but it works a little differently from selling a property you own outright.

If you’ve never sold a Shared Ownership home before, it can feel confusing at first. There are additional steps, extra parties involved and specific rules written into your lease. The good news is that once you understand how the process works, selling a Shared Ownership home can be straightforward and well managed.

This guide explains everything you need to know about selling a Shared Ownership property, including what happens at each stage, what costs to expect and a real world example of someone selling a 25% Shared Ownership apartment.

What is Shared Ownership?

Shared Ownership allows you to buy a percentage of a home (usually between 10% and 75%) while a housing association owns the remaining share. You pay a mortgage on the part you own and rent on the share you don’t.

Over time, many homeowners choose to increase their share by buying additional portions of the property through a process known as staircasing. Others decide to sell before reaching 100% ownership.

Selling a Shared Ownership home is allowed at any point, but the method you use depends on how much of the property you currently own.

Can you sell a Shared Ownership home?

Yes, you can sell a Shared Ownership home at any time. However, if you don’t own 100% of the property, your lease will require you to follow a specific resale process.

• You must inform your housing association that you intend to sell
• The housing association has the first opportunity to find a buyer
• A professional valuation determines the sale price
• If no buyer is found, you may sell on the open market

If you already own 100% of the property, the process is usually the same as selling any other leasehold or freehold home.

Step by step: How to sell your Shared Ownership home

1. Read your lease and understand your obligations

Before doing anything else, read your shared ownership lease carefully. This document outlines the rules you must follow when selling, including:

• How long the housing association’s nomination period lasts
• Whether you can sell your share or must sell the whole property
• Any fees payable to the housing association
• The criteria buyers must meet

Your lease is the rulebook for your sale, so understanding it early will help you avoid delays later on.

2. Get a professional valuation

When selling a shared ownership home, you can’t set your own asking price. You must obtain a valuation from a qualified surveyor. This valuation determines:

• The full market value of the property
• The value of the share you own
• The maximum price your home can be marketed for during the nomination period

The valuation is usually valid for three months. If your property doesn’t sell within that time, you may need to pay for a new valuation.

3. Arrange an energy performance certificate

You will need a valid energy performance certificate (EPC) before your home can be marketed. If your EPC has expired, you’ll need to arrange a new one. This is a standard requirement for all property sales.

4. Notify your Housing Association

Once you have your valuation and EPC, formally notify your Housing Association that you intend to sell. This starts the nomination period, during which:

• The housing association markets your property to eligible buyers
• Buyers must meet shared ownership affordability criteria
• The sale price is based on the independent valuation

Nomination periods typically last between four and twelve weeks, depending on your lease.

5. Selling during the nomination period

If the Housing Association finds a suitable buyer during this period, the sale proceeds using that buyer. This is often the simplest route, as the Housing Association manages much of the marketing and checks. The sale price, however, is fixed by the valuation.

6. Selling on the Open Market

If no buyer is found within the nomination period, you can sell on the open market. At this point, you may:

• 1. Sell the share you currently own
• 2. Sell the entire property using a back-to-back staircasing arrangement

Back-to-back staircasing allows a buyer to purchase 100% of the property in one transaction, often attracting more interest than selling a smaller share.

7. Choosing an estate agent

If selling on the open market, select an estate agent experienced with Shared Ownership properties. They will:

• Market the property
• Arrange viewings
• Negotiate offers
• Liaise with solicitors and the Housing Association

Clear communication helps keep the sale on track.

8. Instruct a Solicitor

You will need a solicitor or conveyancer experienced in Shared ownership transactions. They will handle:

• Contract preparation
• Liaison with the housing association
• Mortgage redemption
• Lease transfer
• Completion of the sale

Legal fees vary, so it’s wise to get quotes early.

9. Completion

Once all checks are complete, contracts are exchanged and a completion date is set. On completion:

• Your mortgage is repaid
• The housing association (or new buyer if open market) receives their share
• Any remaining funds are paid to you

Back-to-back staircasing transactions are also completed at this stage, allowing the buyer to take full ownership in one step.

You can sell your Shared Ownership property at any time.

However, if you do not own 100% of the home, you must follow the process outlined in your lease, including notifying your housing association, obtaining a professional valuation and giving them the opportunity to find an eligible buyer before selling on the open market.