Published 05 Sep 2018
How Easy Is It to Sell a Shared Ownership Property?
Selling a Shared Ownership property differs to selling a property on the open market. However, this must be done via the housing association. 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.
We will assist you with the sale of your home, the fees charges are less than those from you less than those charged by a normal 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:
The resales team will assign a sales executive and coordinator to assist you with the sale of your home. They will provide advise through the sale and help you coordinate viewings and allocate an eligible and affordable buyer for your home
Marketing of your property online
We will market your property by:
•publishing your listing on the Peabody Sales website
•publishing your listing on the Home for Londoners and Share to Buy website (websites dedicated to Shared Ownership in the UK)
•sending your listing to thousands of interested buyers on our database
Before selling your home it will need 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. If the property is managed by an external management agency, there will be an addition fee to provide this information. Your solicitor will also advise you any other disbursements that you will need to be responsible for.
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 around 2% of the full market value of the property.
What is the process of selling your Shared Ownership home?
- Once you’ve contacted Peabody letting us know that you want to sell your home. We will send you the relevant paperwork along with a guide that you will need to complete
- Next we will ask you to choose a valuer from our panel and we will instruct the valuation on your behalf. Once the valuation is approved by us, we will send it to you
- Once you agree on the valuation a marketing fee of £350 will need to paid
- We will put together a sales information sheet for the websites.
- We ask you to confirm a viewing date for your property.
- We will market your property on the Peabody and Share to Buy websites
- Eligible applicants come to view the property on your agreed viewing date
- If interested, the buyers complete a reservation form and send this to us. We will allocate a suitable buyer for your property
- The buyers complete the financial assessment and place a non-refundable reservation fee of £500.
Your selling process is commenced when the memorandum of sale is sent out to both sets of solicitors
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.