Shared ownership schemes have helped many buyers get onto the property ladder. They offer a great way to part-own and part-rent a home. However, when it comes time to sell, some owners find the process more challenging than they expected. So, is selling a shared ownership property really a nightmare, or is it just a different process with its own set of rules? Let’s take a balanced look.
Understanding Shared Ownership Sales
Unlike a standard property sale, shared ownership homes come with specific rules dictated by the housing provider (usually a housing association) that owns the remaining share. These can sometimes make selling more complicated, but not necessarily impossible.
Here’s how it typically works:
- Valuation – You must obtain a valuation from an independent RICS-certified surveyor. The housing association will determine the selling price based on this valuation, so you can’t just list the property for what you think it’s worth.
- Right of First Refusal – Most housing associations require the right to find a buyer first. They usually have a set period (often 4–8 weeks) to market the home to eligible buyers.
- Marketing & Finding a Buyer – If the housing association can’t find a buyer, you are then free to market the property on the open market, but only to eligible buyers who meet shared ownership requirements.
Staircasing Before Selling (Optional) – If financially viable, some sellers opt to buy more shares (staircase) to own 100% of the property before selling, which removes shared ownership restrictions.
Why Can Selling Be Difficult?
While shared ownership can be a great way to buy, selling can come with hurdles:
1. Limited Buyer Pool
Because buyers need to meet specific criteria (such as income limits and no full homeownership elsewhere), finding an eligible buyer may take longer compared to a traditional sale.
2. Restrictions & Delays
The housing association’s right to market the property first can delay the process, and their involvement in approving buyers can add extra steps. Some sellers report slow response times from housing associations, further prolonging the sale.
3. Valuation & Pricing Issues
The set valuation may not reflect market conditions. If the property is valued higher than similar full-ownership homes, it may put off potential buyers. Unlike a standard sale, there’s little room for price negotiation.
4. Rent and Service Charges Continue
Until the property sells, you remain responsible for rent and service charges on the unsold share, which can be financially straining.
5. Mortgage Challenges for Buyers
Not all mortgage lenders finance shared ownership properties. However, there is a lot more choice currently. As a buyer you may need specialist mortgages, reducing the number of potential purchasers.
Ways to Make Selling Easier
Despite the challenges, selling a shared ownership home doesn’t have to be a nightmare. Here are some ways to improve your chances of a smooth shared ownership resale:
✅ Stay Proactive – Keep in regular contact with your housing association to ensure they’re actively marketing your property and responding to inquiries.
✅ Choose a Specialist Estate Agent – If the property goes to the open market, work with an agent experienced in shared ownership sales.
✅ Get the Valuation Right – Ensure the valuation is fair and reflects current market conditions. If it seems too high, you may be able to challenge it.
✅ Consider Staircasing – If financially possible, buying the remaining shares and selling as a full-ownership property can broaden your buyer pool.
✅ Be Patient – Shared ownership sales can take longer, so setting realistic expectations can reduce frustration.
Is It Worth It?
For some, selling a shared ownership home is a smooth process, especially if the housing association finds a buyer quickly. For others, delays and restrictions make it more frustrating than a standard sale. However, with the right preparation and approach, most sellers do eventually find a buyer.
If you’re thinking about selling, understanding the process, planning ahead, and staying proactive can make all the difference. While it may not be as straightforward as a traditional sale, it’s far from impossible. Most importantly, it certainly doesn’t have to be a nightmare.
