Leasehold and shared ownership
Shared ownership sale
Selling a shared ownership home, including the housing association's nomination period, the valuation and approval of your buyer.
Every cost on its own line: the law firm's legal fee, VAT, the searches and other third-party costs, and any property tax. Your quote opens as soon as you send the form.
Contact the housing association before you put the home on the market. Its resale process and nomination period usually come first.
Selling a shared ownership home works differently from an ordinary sale. While you own less than 100%, the landlord, usually a housing association, normally gets the first chance to find a buyer for your share during what is called the nomination period. The price is not simply what a buyer offers: it is based on a valuation by a surveyor registered with the Royal Institution of Chartered Surveyors (RICS).
This service is for selling your share in a shared ownership home, or the whole home if you have staircased to 100%. If you own 100%, you can usually sell on the open market like any other leasehold property, although some homes in protected rural areas keep restrictions.
Your instant quote shows the legal fee with the shared ownership and leasehold admin fees, plus the third-party costs. If you go ahead, Keyfolio introduces you to a regulated law firm used to working with housing association resale teams.
What is involved
A shared ownership sale usually follows these steps:
- Telling the landlord: you notify the housing association that you want to sell, and it explains its resale process and fees.
- Valuation: a RICS-registered surveyor values the home, and that valuation sets the price for your share.
- Nomination period: the landlord has a set time, commonly 4, 8 or 12 weeks depending on the lease, to find a buyer, often from its list of eligible applicants. If it does not, you can usually market the home through an estate agent.
- Buyer approval: a buyer of a share must normally meet the scheme's eligibility rules and be approved by the landlord.
- Contract pack: your conveyancer prepares the contract, obtains the management information and answers the buyer's enquiries about the lease.
- Landlord's paperwork: obtaining the housing association's confirmation of the price, rent and service charge position and any consent the sale needs.
- Completion: once the buyer's money arrives, your mortgage is repaid, rent and service charge are settled to the day and the rest is paid to you.
If you buy the remaining share at the same time as selling, the staircasing and the sale can be completed together.
What the legal fee covers
- Confirming the landlord's resale process and requirements
- Reviewing the lease and title
- Preparing the contract and the leasehold information for the buyer
- Answering the buyer's enquiries
- Dealing with the housing association's approval and paperwork
- Working out rent and service charge apportionments
- Exchanging contracts and completing the sale
- Repaying your mortgage and sending you the proceeds
Costs you may see on top
- The shared ownership admin fee for dealing with the landlord
- The leasehold admin fee
- The RICS valuation, which you pay for
- The housing association's resale or administration fee
- A management information fee if a managing agent is involved
- A fee for repaying your mortgage on completion
- Estate agent's fees if the landlord does not find a buyer and you market the home yourself
What to have ready
- Your lease and the key information document, if you have them
- Contact details for the housing association's resale team
- Recent rent and service charge statements
- Your mortgage account details
- Any consents for alterations or improvements you have made
- Photo identification and proof of address for each seller
How long it takes
A shared ownership sale often takes longer than an ordinary sale because of the steps before a buyer is found. The nomination period alone is commonly 4, 8 or 12 weeks depending on your lease. Once a buyer is agreed, the legal work commonly takes 12 to 20 weeks to completion, as with other leasehold sales. Buyers who need a shared ownership mortgage and the landlord's approval can add time, as can a valuation that runs out before a buyer is found.
Things to watch for
- Speak to the housing association before you instruct an estate agent. Marketing the home before the nomination period ends can breach the lease.
- The valuation sets the price of your share, so you cannot simply accept a higher or lower offer without the landlord's agreement.
- Improvements you made with permission may be treated differently in the valuation, so keep your records and consents to hand.
- Check whether your home is in a designated protected area. Some rural leases limit who you can sell to or require the landlord to buy the home back.
- You stay responsible for rent, service charges and your mortgage until completion, even if the home is empty while you wait for a buyer.
Questions people ask
What is the nomination period?
It is the time the landlord has under your lease to find a buyer for your share before you can sell on the open market, commonly 4, 8 or 12 weeks. The landlord usually advertises to people on its waiting list who meet the eligibility rules. If no buyer is found in time, you can normally instruct an estate agent, but the buyer still needs to be approved.
How is the price worked out?
The sale price is based on a valuation by a RICS-registered surveyor, which you usually pay for. You receive your share of that value, before repaying your mortgage and costs. For example, if you own 40% and the home is valued at £300,000, your share is worth £120,000. Valuations are usually only valid for a limited period, so a slow sale may need a new one.
Can I sell if I own 100%?
Yes. If you have staircased to 100%, you can usually sell on the open market like any other leasehold home, and the nomination period no longer applies. There are exceptions, for example some homes in designated protected areas where the landlord keeps the right to buy the home back. Your conveyancer will check your lease and title for any remaining restrictions.
Can the housing association buy my share back?
Under most leases, only in exceptional circumstances. The usual route is for the landlord to find a buyer during the nomination period. If you are in financial difficulty or need to sell quickly, speak to the housing association early, as it may be able to explain other options.
Who does the work
Your matter is handled by a law firm regulated by the Solicitors Regulation Authority, the Council for Licensed Conveyancers or CILEx Regulation, or in Northern Ireland by a solicitor regulated by the Law Society of Northern Ireland. At the moment the law firms on our panel act for property in England and Wales, so for property in Northern Ireland we tell you whether a firm can act for you before we pass your details to anyone. The firm confirms who will work on your file, their experience and its terms before you instruct it. How we choose our firms.
Helpful guides
The other costs of your move
- Moving costs calculator: the other costs of the move, from the survey to removals