Their may be limitations imposed when reselling a shared equity property

Selling a property with shared equity ownership


Shared Equity Ownership - Reselling

If the property you are selling has shared equity ownership, then the sale process is more complex than normal.

Shared Equity Ownership Reselling - Outright Purchase Option

One way of simplifying the sale is to purchase all the outstanding equity yourself and then sell as a straightforward Freehold property sale. The advantage is This is that it does not limit the potential buyers who might be interested in the property. The difficulty with this option is financing the initial up front cost of purchasing any outstanding equity in the property prior to sale.

Shared Equity Ownership Reselling through a Housing Association

When a housing association owns the remaining share of a property, restrictions on the re-sale procedure are usually much stricter. It is common for the lease to contain a nomination period. This means that once you give notice to the housing association, there will follow a set period (normally around two months) whereby the housing association has exclusivity to locate a buyer from their register. The association will charge a fee for this service, which is usually in the region of 0.75 percent of the value of the property. 

If, at the end of the nomination period, the association has failed to locate a purchaser, the owner will then normally be free to sell the property on the open market.

A combination of the two methods is normally available to those who own shared property that was purchased through a commercial company or, in some cases, is also available for housing association shared ownership. In this instance, the owner will not have to purchase the entire property in order to sell and will only be offering the percentage that they currently own for sale, as well as the assignment of the lease for the remainder. This can be conducted on the open market, without going through a nomination period, if the lease allows.