EXPERTS
How does shared ownership work?
Q I purchased my shared ownership property four years ago and now want to sell it. How easy will that be? Jack Townley, Birmingham A If you’ve enjoyed living in your shared ownership property and are now ready to sell, the good news is that the process can be straightforward and offers flexibility. The first step is to choose a specialist agent who understands the shared ownership market.Working with an expert like SOWN ensures that the process is seamless, as it Q I am a first time buyer and feel that now is the time to get on the ladder. I have been looking at some shared ownership developments and I think I have found somewhere I really like but I am not sure how the process works – can you help please? Millie Singer, Streatham A Finding the perfect place can be tricky. It’s exciting you’ve found a home that works for you, because if it meets your needs, fits your budget, and is in the right location, you should snap it up! But what happens next? Let’s talk about the process of buying with shared ownership. Once you have found the property, the next step is to reach out and arrange a viewing. Many developers and housing associations, like Guinness Homes, will ask you to complete an affordability assessment ahead of a viewing.This can happen before or after you submit your shared ownership application.Think of it as a way for sellers to gather your information and verify through a financial adviser (often provided by them) that you meet the eligibility criteria for shared ownership. Which includes being over 18 and not owning another property (at home or abroad), as well as good credit history and a household income under £80,000 per year (or £90,000 if you’re in London). Once you’ve passed those checks, it’s time to secure a mortgage. You can use your own broker if you have one, and at Guinness Homes, we offer a panel of expert mortgage advisers and panel solicitors to make things easier for you.When you’re ready to move forward, you’ll need to pay a shared ownership reservation
fee to secure your property.This typically ranges from £200 to £500. However, Guinness Homes stands out by offering the lowest reservation fee on the market at just £99*! This fee is usually refunded upon completion, though it can vary by provider. After you’ve made your reservation fee, you’ll pay your deposit and let your solicitors progress your purchase to the big day of completion. From start to finish, the shared ownership process usually takes about one to three months. Before you know it, you’ll be on your way to starting your new home journey!
Rob Carter
* As of October 2024, a survey of over 137 providers of shared ownership revealed that Guinness Homes has the lowest payable reservation fee publicly available on websites and/ or other marketing materials at £99 per shared ownership home
Selling a shared ownership property
Flexible Sale Options: If your property hasn’t sold within the nominations period, you can sell it either as a shared ownership home or on the open market, just like any other property.This flexibility means you have options—whether you choose to sell the share you own or staircase up to 100% ownership before selling it as a full ownership property. Independent Valuation: To ensure your property is priced correctly, you will need an independent valuation from a RICS- accredited surveyor.This helps to determine the market value, whether you are selling it as shared ownership or you are considering staircasing. Leasehold Considerations: All shared ownership homes are leasehold, so it’s a good idea to check your lease terms. If the lease is nearing 80 years, extending it before
has the knowledge to navigate the unique aspects of shared ownership sales and market your property to the right buyers. Here are the key steps and considerations to keep in mind: Nominations Period:
selling, or to coincide with the sale, can make your property even more attractive to buyers and open up more mortgage lenders. Potential Fees: Some housing providers may have small administration fees for managing the sale. It’s worth checking this in advance, but with the right agent, this will all be handled smoothly for you. With the right support and guidance, selling your shared ownership property can be a positive and easy experience. By choosing a specialist agent, preparing your home, and understanding the process, you’ll be ready to move forward with confidence.
Check with the housing provider you purchased from to see if it has a “nominations period.”This is a set time during which it has the right to market your property to other shared ownership buyers. Many providers offer this service, and it can make finding a buyer easier! However, some waive this right, allowing you to sell directly on the open market.
Peter Hawley
First Time Buyer December 2024/January 2025 91
Made with FlippingBook interactive PDF creator