Shared Ownership Resales: how buying and selling works

If you've come across the term Shared Ownership resale and wondered what it means, you're not alone.

A Shared Ownership resale is an existing Shared Ownership home that's being sold by its current owner, rather than a brand-new home being sold by a developer or housing association. Although the home has had a previous owner, the sale still follows the Shared Ownership process.

Whether you're thinking about buying a second hand Shared Ownership home or you're an existing owner wondering how you can sell Shared Ownership, there are a few differences compared with a traditional property sale.

Here's what you need to know from both the buyer's and seller's perspective. 

How to buy a Shared Ownership resale home

Buying a second-hand Shared Ownership home simply means purchasing a share in a home that's already owned by someone else, rather than buying a new-build Shared Ownership property.

Although the home may be several years old, you'll usually go through a similar eligibility, affordability and mortgage process to someone buying a brand-new Shared Ownership home.

You'll still need to:

• meet the Shared Ownership eligibility criteria
• complete affordability checks
• arrange a mortgage (if you need one)
• work with solicitors to complete the purchase.

What you need to check before buying

Every resale listing should tell you the minimum share that's available to buy and, if you can afford to, you can buy a higher share too. But it's worth digging into a few other details as well.

Make sure you understand:

• how much rent you'll pay on the share you don't own
• whether there are any service charges (these can vary, especially in older buildings)
• how many years are left on the lease (resales inherit the sellers remaining lease term)
• whether the home meets your needs now and in the future.

The lease length is an important consideration. Shorter leases can affect mortgage options, however a lease extension is often available, so it's worth understanding the options and any associated costs when considering a property. 

One of the biggest benefits of buying a resale home is that you can see exactly what you're getting. The neighbourhood is already established, local facilities are up and running and you'll get a much better feel for the area than you would on a brand-new development that's still taking shape.

Can you make an offer on a Shared Ownership resale?

Most Shared Ownership resale homes are marketed using an independent valuation carried out by a RICS-qualified surveyor. During the housing provider's nomination period, this valuation will usually set the sale price, which means there may not be much room for negotiation.

If the home hasn't sold during this period and is marketed more widely, there can sometimes be more flexibility.

Every housing provider and lease is slightly different, so it's always worth checking the details for the property you're interested in.

How to sell a Shared Ownership property

Wondering how easy it is to sell a Shared Ownership property? the good news is that you can sell whenever you’re ready. There are a few extra steps compared with selling a property you own outright, but your housing provider will guide you through the process and explain what happens next.

What happens when you sell a Shared Ownership property?

Most Shared Ownership sales follow these steps:

1. Get a valuation

You'll need an independent valuation from a RICS-qualified surveyor. This gives an up-to-date market value for your home and helps set the sale price.

You'll usually need to pay for the valuation yourself.

2. Let your housing provider know

Once you have your valuation, contact your housing provider. They'll explain your options and start the resale process.

3. The nomination period begins

Housing providers are normally given a set period, often between four and eight weeks, to find an eligible buyer.

This is known as the nomination period.

4. The buyer eligibility checks

Anyone interested in buying your home will need to meet Shared Ownership eligibility rules and pass affordability checks.

5. Solicitors get to work

Once a buyer has been approved, the legal process begins. Solicitors will carry out the conveyancing and prepare everything for the sale.

6. Exchange and completion

Contracts are exchanged, final rent and service charge figures are confirmed and the keys are handed over on completion day.

And that's it. Time to start your next chapter.

What if your home doesn't sell during the nomination period?

Don't panic. If a buyer isn't found during the nomination period, you'll usually be able to market your home more widely. 

You may also be able to sell 100% of the shares before the nomination period starts, contact us if you'd like to know more.

Depending on the terms of your lease, you may also be able to sell the property through a process known as back-to-back staircasing, where the buyer purchases your share and the housing provider's remaining share as part of the same transaction.

Your housing provider will explain whether this option is available to you.

How much does it cost to sell?

As well as paying for the valuation, you'll usually need to budget for:

• a resale fee
• any administration fees
• solicitor's costs.

The exact costs vary between housing providers, so it's worth asking for a full breakdown at the start of the process.

Our seller's guides explains what's included in the resale service, from marketing your home to carrying out buyer checks, so you know what costs are involved.

Is it difficult to sell a Shared Ownership house?

Selling a Shared Ownership property isn't usually any more difficult than selling another property, but it can take a little longer. The nomination period can add some time to the process, and your buyer will need to pass the same affordability checks you once did.  

A realistic valuation, a well-presented home and a healthy lease length can all help attract buyers and support a successful sale.

Whether you're buying or selling

Shared Ownership resales work a little differently from a traditional property sale. But once you understand the process, it's much easier to navigate.

If you're buying, take some time to understand the lease, rent and service charges before you commit. It will help you go into the purchase with confidence.

If you're selling, you're not on your own. Your housing provider's resales team will guide you through each step and help keep things moving.

Looking for your next home?

Take a look at our current pre-owned Shared Ownership homes and see what's available.

Find a pre-owned home

Ready to sell?

Our seller's guides walk you through the process step by step, so you'll know exactly what to expect from valuation through to completion.