Selling a shared ownership property involves specific steps and requirements that differ from selling a fully owned home. This article provides a clear, step-by-step overview to help you navigate the process smoothly and efficiently.
Understanding the nomination period
If you decide to sell your shared ownership home, your lease typically includes a nomination period. During this period, we have the right to find a buyer for your home. Traditionally, this period is eight weeks, but to expedite your sale, we have reduced it to a maximum of four weeks.
Our in-house Hyde New Homes resale team specialises in selling shared ownership homes and offers a comprehensive marketing and sales service. We’ll handle everything from your initial enquiry to the completion of your sale.
Shared ownership is aimed at helping people who cannot afford to buy on the open market. Offering these homes to eligible buyers during the nomination period ensures that we continue to support those in need of affordable housing options.
If we do not find a suitable buyer within the four-week nomination period, you will be able to market your home through an estate agent.
How is your property valued?
The price at which you can sell your shared ownership home is determined by a valuation conducted by a qualified surveyor. Here’s how it works:
- Select a Surveyor: We will provide you with a list of approved RICS (Royal Institution of Chartered Surveyors) surveyors with experience in your area.
- Arrange the Valuation: You are responsible for scheduling and paying for the valuation.
- Final and Binding Value: Under the terms of your lease, the surveyor’s valuation is final and must be accepted by both you and us.
- Selling Price: You cannot sell your share for more than the valuation price recommended by the surveyor.
How do you instruct us to sell your home?
Once we’ve approved your valuation and confirmed the value of your share, we’ll send you an “Instruction to Sell” form. This document will:
- Provide details about the share you own.
- Request information about your solicitors.
- Ask how you prefer to arrange viewings.
All legal owners of the property must sign this form.
How will we market your home?
Your goal is to find a buyer and facilitate a smooth sale as quickly as possible. Your dedicated Hyde New Homes Resale Consultant will be your primary contact throughout the process.
- Professional Photography: We’ll arrange for a photographer to take high-quality photos of your property, create floor plans, and, if necessary, update your EPC.
- Online Advertising: We’ll prepare a marketing advertisement for your approval before listing it on the Hyde New Homes website and external shared ownership platforms like Share to Buy and Homes for Londoners.
- Key Information Documents: We’ll compile all necessary information about your home to assist potential buyers in understanding the shared ownership purchase.
While we handle the marketing, you will be responsible for conducting viewings, as we’re unable to do so due to the wide geographical area we cover. We can help organise and coordinate an open day for viewings on a date that suits you.
What happens when a buyer is interested?
Once a potential buyer expresses interest, we will coordinate with a specialist financial advisor to ensure they meet the shared ownership criteria.
Upon successful completion of the financial assessment, your home will be placed under offer, and a formal offer letter will be sent to the buyer.
If we haven’t found a buyer during the four-week nomination period, you may choose to list your property with a local estate agent:
- Selling Price: The agent must sell your share at the valuation price determined by the RICS surveyor.
- Fees: Hyde will not charge a resale fee if you sell 100% through a local agent, but a pre-assignment sale pack fee of £300 and any other associated costs will apply.
- Continued Marketing: We will continue to market your home unless you instruct us otherwise.
How does the legal process work?
Step 1: Instruct a Solicitor
We recommend that you choose a solicitor experienced in shared ownership sales to avoid unnecessary delays. Your solicitor will obtain the title deeds and prepare a draft contract for the buyer’s solicitor. You’ll need to fill out a fixtures and fittings form and a seller’s information form.
The buyer’s solicitor will review all documents and may raise inquiries about boundaries, disputes, rights of way, covenants, lease details, and more.
Step 2: Memorandum of Sale
After the buyer accepts the formal offer, a Memorandum of Sale will be issued to all parties involved, including both solicitors. Your solicitor will manage communications with the buyer’s solicitor on your behalf.
Step 3: Conveyancing Process
The buyer’s solicitor will conduct searches (e.g., local authority, environmental) and may request additional information from managing agents if applicable.
If your home is managed by an external agent, they may charge fees to answer specific inquiries. You are responsible for these additional costs.
Step 4: Pre-Assignment Sale Pack
Your solicitor will need this pack from our Home Ownership Team, which includes service charge accounts, notices, and details of any planned works. There is a £300 fee for the leasehold enquiry pack.
If service charge accounts are not finalised, your solicitor may request a retention of funds to cover any potential shortfalls. This amount could be held for up to 18 months.
Step 5: Exchange of Contracts
Once all inquiries are resolved, you’ll sign the contract, and the buyer will pay a deposit. Upon exchange of contracts, the sale becomes legally binding, and a completion date is set.
Step 6: Completion Day
Before completion, our solicitors will provide a statement requesting any outstanding rent, insurance, service charges, the resale fee, and our solicitor’s fees. These amounts will be deducted from the sale proceeds via your solicitor. Remember to cancel any direct debits for rent and service charges on the completion day.
Once the sale is complete, we’ll receive legal notice, update our records, and adjust your accounts accordingly. If there’s a credit on your account after closure, our income team will arrange a refund.
