Published 13 Nov 2017
How Easy Is It to Sell a Shared Ownership Property?
Selling a Shared Ownership property differs to selling a property on the open market, but you are still able to sell your property at any time you wish. You will also benefit from our help in marketing and selling your home.
Are there any restrictions on selling Shared Ownership?
If you wish to sell your home but you don't own 100% of it, you will be obliged to first give Peabody eight weeks to sell your property before you can put it on the open market. This is because your Shared Ownership home came from affordable housing stock and it's important that it gets passed on to somebody who is also eligible for the Shared Ownership scheme.
This, actually, is a benefit to you as a seller rather than an obstacle. We have thousands of potential Shared Ownership buyers registered with us, waiting for suitable properties to become available on the re-sale market. In fact, our success rate is exceptionally high with 98.8% of re-sales sold during the eight week nomination period.
•Properties are marketed for an average of 16 days before a buyer is found.
•Properties we market receive, on average, 38 requests for viewings.
•Properties receive, on average, four post-viewing enquiries to buy.
(Results above are based on Peabody Shared Ownership resale properties that were in marketing between February and May 2015.)
Also, we will assist you with the selling process and if we manage to sell your home, it will cost you less than if you had gone to a high-street estate agent.
The costs of selling your property
There is a number of costs involved in selling your Shared Ownership property and these include:
The marketing fee is a non-refundable fee of £350 which covers the costs of us trying to sell your property. The fee is deducted from the total proceeds from the sale on completion. For this amount you will get:
Our personal assistance
A member of our Residents' Team will visit you in your home and talk you through the process of selling your home.
Photos of your property
We will come to your home and take high-quality photos to aid your property listing
Marketing of your property online
We will market your property by:
•publishing your listing on the Peabody Sales website
•publishing your listing on the Share to Buy website (a website dedicated to Shared Ownership in the UK)
•sending your listing to thousands of interested buyers on our database
Before selling your home it needs to be valued. For this you will need to choose a Peabody-approved valuer. We have a panel of surveyors who can carry out the valuation; they are all RICS-qualified and they cover the whole of London and Essex. Their prices range from £240 to £500.
You will need to pay Peabody's legal fees - which cost between £450 and £500 - as well as your own solicitor's fees, which may vary.
Leasehold Information Pack
The Leasehold Information Pack is a collection of documents you will need to purchase to pass onto the buyer. The Pack contains important information about your property such as ground rent, service charges, information about the freehold manager and the like. The Leasehold Information Pack costs £210.
Energy Performance Certificate
Energy Performance Certificate is a document containing information about a property's energy usage and typical energy costs as well as recommendations about how to reduce energy use and save money. An EPC gives a property an energy efficiency rating from A (most efficient) to G (least efficient) and is valid for ten years.
If your property is under ten years old, EPC can usually be retrieved online. For older properties, you will need to have somebody come and look at your property.
When we send our initial letter to the seller - instructing them on what they need to do before we come to visit their property - we include details of companies we work with that offer EPC service. The cost of getting a new EPC ranges from £50 to £100.
The assignment fee is payable when we find a buyer for your property. On completion of the sale, the seller pays an assignment fee of 1.5% of the total value of the sold share that they owned (plus VAT), minus the £350 marketing fee which they had paid in the beginning.
This payment structure works out cheaper than if you had employed an estate agent to sell your home, because they usually charge 2% of the full market value of the property.
What is the process of selling your Shared Ownership home?
•Once you’ve contacted FM letting us know that you want to sell you home, we send you some documents you need to complete; details about your property, and yourself.
•Once we’ve got these documents, we will call you to take the marketing fee (£350)
•We then visit you at your property to explain the sales process and take pictures.
•Next, we instruct the valuation.
•Once the valuation is approved by us, we will send it to you to make sure that you approve it.
•We put together a sales sheet for the websites.
•We ask you to confirm the viewing date.
•We market your property on our website, Share to Buy website and via email.
•Eligible applicants come to view the property over the weekend (usually 10 to 12 people).
•If interested, the buyers complete a reservation form within three to four days after the viewing.
•The buyers complete the financial assessment and place a reservation fee of £500.
•The solicitors complete the purchasing process.
What if I own 100% of my property?
If you own 100% of your property, you do not have to sell your property with the help from Peabody, and can instead sell on the open market with an estate agent. In this case, buyers will not need to meet the affordable homes criteria.