The actual legal process when selling your share of your Shared Ownership property is no different from selling a non-Shared Ownership property. What is different, is that you must comply with the terms of the Shared Ownership lease in relation to whom the property can be sold to as opposed to placing the sale directly in the hands of an estate agent.
New Homes Law, one of Peabody’s panel solicitors, looks at the process of selling a Shared Ownership property.
Who can I sell my Shared Ownership home to?
Since the aim of the Shared Ownership scheme is to provide affordable homes to first-time buyers, you won't be able to sell your property to just anyone. The lease will require that you must inform the housing association by written notice of your intention to sell so that it can then look to nominate another suitable purchaser for the property.
The lease will refer to the “assignment” of the property. This is the term used for the transfer of your interest in the lease to another party. Once a new purchaser has been selected you will need to appoint a solicitor to act on your behalf in connection with the sale of the property and the repayment of your mortgage. The Sale and repayment will be done simultaneously.
Which solicitor can I use?
The housing association will usually be able to provide you with the details of Solicitors who have a proven track record within the Shared Ownership field. After you have instructed your chosen representative, the solicitor will prepare a contract on your behalf and answer any enquiries raised by the new buyer’s solicitors. They will also liaise directly with the housing association.
What happens next?
As soon as all relevant paperwork has been signed and all enquiries have been answered, the contracts are exchanged and a completion date will be agreed. On the agreed date, the property will be assigned to the buyer and your outstanding mortgage amount repaid.
It is always advisable as the seller of any Shared Ownership property to remember that you will be liable for the payment of rent and service charges up to the date of completion.