Selling your Shared Ownership home
You can sell your share in the property regardless of the size of the share you own. When you come to sell up, the value of the home could have gone up or down since you first bought it, depending on housing market conditions.
If you decide to sell your L&Q home, the re-sales team will help you find a buyer. L&Q are given the first opportunity to re-sell your property to another Shared Ownership buyer. This is so that another person has a chance to buy their home under Shared Ownership, just like you did.
How will L&Q sell my home?
We’ll try to sell your home in eight weeks. This gives us a chance to offer the property to other first time buyers and to honour our agreement with the local authority. It also helps make sure you’re given an efficient and cost-effective service. You will need to have your home valued and take photos for the sale. We’ll advertise your home online and send mail outs to people who are already on our waiting list for a home.
If we find a buyer for your home within those eight weeks, you’ll be charged an administration fee. This fee is Lease dependant and will be either 1% or 1.25% of the home’s full market value, plus VAT. This is a competitive fee compared to many estate agents.
What if there’s no buyer after eight weeks?
If there’s no buyer after eight weeks, we’ll waive our right to sell the property ourselves and you have the option to sell it through an estate agent after that point. You can either sell the whole property for the full market value, or you can just sell your share. If you find a buyer who wants to buy the share, you have to sell at the current market value stated on your up-to-date valuation report – you won’t be able to take offers that are different from the valuation amount.
Please note that if L&Q don’t find a buyer for your share, you’ll be responsible for covering our solicitors’ costs as we’ll be waiving our retail admin fee.
If you decide to sell the property outright, you can accept an offer higher than the valuation amount. If this happens, you’ll need to pay us our share based on the sale price you accept from your buyer. You’ll also be responsible for paying your estate agent fees. You would not be able to accept an offer that is lower than the valuation amount unless you’re prepared to take the shortfall.
Will my home need to be valued?
Yes, under the terms of your lease we’ll need to know the value of your home when you come to sell it. This is because there are public funds invested in your home. You will need to instruct an independent valuer, qualified through the Royal Institution of Chartered Surveyors (RICS).
The value of the property could increase or decrease based on housing market conditions, so you may find your home is valued at more or less than the original price you first paid for it.
Any significant improvements you’ve made to your home will be included in the full market value. From this, we’ll calculate the value of your share.
Your valuation report will only be valid for three months. If it takes longer than three months to sell your property, then you’ll need to get what’s known as a desktop valuation. This is a professional adjustment of the original valuation, based on market conditions. It’s your responsibility to make sure you have an up-to-date valuation during the sale process.
What are the costs involved in selling my share?
If L&Q find a buyer for your home, you’ll be charged an administration fee. This fee is Lease dependant and will be either 1% or 1.25% of the home’s full market value, plus VAT. As a seller, you are also obligated to provide prospective purchasers with an Energy Performance Certificate and you’re responsible for the costs of obtaining this. Once you have found a buyer, you will need to cover the cost of any solicitor fees.
For more detailed information on the selling process, you can visit the L&Q Group website.
When should I look for my next home?
You can start looking for your next home as soon as you decide to sell. However, to avoid putting yourself under any pressure, it’s best if you avoid making an offer on another home until a buyer has agreed to purchase your Shared Ownership home.
Laura and David sold their 50% share of a Shared Ownership property with L&Q
“When it came to selling our flat we found that L&Q were very helpful, they supported us through the process. It took a lot of pressure off us at a period of time that could have been quite stressful.”