Selling a Shared Ownership Property: How It Works

Selling a shared ownership property is not the same as selling a standard home. There are additional steps, specific rules set by your housing association, and a process that most sellers encounter for the first time. If you bought your home through the government's shared ownership scheme, this guide explains exactly what you need to do, how long it takes, and what it costs.

Shared ownership allows buyers to purchase a share of a property (usually between 25% and 75%) and pay rent on the remaining share to a housing association. When you come to sell, the process is shaped by the terms of your lease and by the housing association's role as part-owner of the property. Understanding these steps early will help you avoid delays and unexpected costs.

How shared ownership sales work: the step-by-step process

The selling process for a shared ownership property follows a structured sequence that differs from a conventional sale. Here is what to expect at each stage:

1. Notify your housing association

The first step is to inform your housing association in writing that you intend to sell. This is a requirement of your lease, and you cannot proceed without it. The association will then explain their resale process and provide any forms you need to complete. Most housing associations have a dedicated resales team that manages this process.

2. Obtain a RICS valuation

Your housing association will arrange for an independent valuation by a Royal Institution of Chartered Surveyors (RICS) qualified surveyor. This valuation determines the full market value of the property, from which the value of your share is calculated. The cost of this valuation falls on you as the seller and typically ranges from £150 to £500. The valuation is usually valid for three months, so timing matters — if the sale is not completed within that window, you may need to pay for a fresh valuation.

3. The nomination period

Once the property is valued, your housing association activates the nomination period. During this time, the association has the exclusive right to find a buyer from its waiting list of eligible applicants. The nomination period is set out in your lease and usually lasts between four and twelve weeks. The purpose is to give priority to people who qualify for affordable housing. During this period, you cannot market the property yourself or instruct an estate agent.

If the housing association finds a suitable buyer during the nomination period, the sale proceeds directly between you and that buyer. The association handles much of the matching, but you will still need a solicitor to manage the legal transfer.

4. Open market sale (if no buyer is found)

If the nomination period expires without a buyer being found, you are free to sell on the open market. At this point, you can instruct an estate agent and market the property to any buyer. However, the buyer will still be purchasing only your share (unless you have staircased to 100%), and the housing association retains its ownership of the remaining share. The buyer must meet the housing association's eligibility criteria if they are purchasing a share of less than 100%.

5. Conveyancing and completion

Once a buyer is found — whether through the nomination period or on the open market — the standard conveyancing process begins. Your solicitor will prepare the contract pack, the buyer's solicitor will raise enquiries, and the housing association will need to approve the incoming buyer. This additional layer of approval can add time compared to a conventional sale. Expect the conveyancing stage to take eight to twelve weeks once a buyer is in place.

Understanding staircasing

Staircasing is the term for buying additional shares in your shared ownership property. Each time you staircase, you increase your ownership percentage and reduce the share owned by the housing association. You can staircase in stages — for example, moving from 40% to 60%, then later to 80% — or in a single step up to 100%.

Whether you should staircase before selling depends on your circumstances. Here is how the two approaches compare:

Staircasing to 100% before selling can be worthwhile if you have the funds, because it opens the property to a much wider buyer pool and removes the nomination period. However, you will need a new RICS valuation to determine the cost of purchasing the remaining share, and you will need to pay solicitor fees for the staircasing transaction itself. According to Homes England, most shared ownership leases allow staircasing in increments of 10% or more, though the exact minimum depends on your lease terms (Homes England, Capital Funding Guide, Section 5).

Costs of selling a shared ownership property

Selling a shared ownership home involves several costs that are unique to the scheme, on top of the standard expenses any seller faces. Here is a breakdown of what to expect:

For a comprehensive view of what it costs to sell any property, including disbursements and fees you might not expect, see our conveyancing costs breakdown.

The housing association's role in your sale

Your housing association is not just a landlord in a shared ownership sale — they are an active participant with specific rights and responsibilities set out in your lease. Understanding what they do (and what they require from you) will help you manage the process more smoothly.

Key responsibilities of the housing association during a resale include:

• Instructing the RICS valuation — The association commissions the valuation from their approved panel. You pay the fee, but you do not choose the surveyor.
• Managing the nomination period — The association markets your share to eligible buyers on their waiting list. They handle viewings and applications during this period.
• Approving the incoming buyer — Whether the buyer comes from the nomination list or the open market, the housing association must confirm the buyer meets eligibility criteria for the shared ownership scheme.
• Providing documentation — The association supplies information that your solicitor and the buyer's solicitor need, including details of rent, service charges, and the lease terms.
• Consenting to the assignment — The transfer of your lease to the buyer requires the housing association's formal consent. This is typically a condition of exchange.

Response times vary significantly between housing associations. Some are efficient and process resales within their stated timescales. Others are slower, which can cause frustration and delays. If your housing association is slow to respond, your solicitor can chase on your behalf, but there is no statutory deadline that compels them to act within a specific timeframe.

Selling on the open market after the nomination period

If the nomination period passes without a buyer being found, you enter the open market phase. At this stage, selling your shared ownership property looks more like a conventional house sale, but with some important differences.

You can instruct an estate agent and market the property to the general public. However, if you have not staircased to 100%, the buyer is purchasing your share only. This means:

• The buyer needs a shared ownership mortgage, which not all lenders offer. This narrows the buyer pool.
• The buyer must be approved by the housing association as an eligible shared ownership purchaser.
• Your estate agent must make clear in the listing that the property is shared ownership and state the percentage being sold. This is a requirement under the National Trading Standards Estate and Letting Agency Team material information guidance.
• The sale price is based on the RICS valuation, not on an asking price you or your estate agent set.

If you want to sell quickly, staircasing to 100% before marketing can help considerably because it removes the nomination period and opens the property to all buyers with standard mortgages.

Lease considerations for shared ownership sellers

Shared ownership properties are almost always leasehold, and your lease governs much of the selling process. Key lease provisions to check before you start include:

• The nomination period length — This varies between leases. Some specify four weeks, others up to twelve. Knowing the length helps you plan your timeline.
• Pre-emption rights — Some leases give the housing association the right of first refusal to buy back your share, even after staircasing to 100%. Check whether this clause exists in your lease.
• Remaining lease term — If the lease has fewer than 80 years remaining, mortgage availability for your buyer will be significantly reduced. Most housing associations will extend shared ownership leases, often for a relatively modest cost compared to private leasehold extensions. The GOV.UK shared ownership guidance confirms that housing associations should offer lease extensions to shared owners, often at no premium where the association is both freeholder and landlord (GOV.UK, Shared Ownership: A Buyer's Guide).
• Consent to alterations — If you have made changes to the property, the buyer's solicitor will check whether you obtained the necessary consents from the housing association. Unapproved alterations can delay or derail a sale.
• Service charges and rent arrears — Any arrears must be cleared before completion. The buyer's solicitor will raise enquiries about your payment history.

Common delays and how to avoid them

Shared ownership sales are particularly prone to delays because of the number of parties involved. Here are the most common causes and how to mitigate them:

1. Slow housing association response. Some associations take weeks to acknowledge your intent to sell or to arrange a valuation. Mitigate this by contacting them as early as possible — ideally well before you are ready to list.
2. The nomination period itself. This is a fixed waiting period built into your lease. You cannot skip it, but you can use the time productively by instructing a solicitor, gathering documents, and preparing your legal pack. See our conveyancing costs breakdown to understand what your solicitor will need.
3. Buyer mortgage difficulties. Shared ownership mortgages are offered by fewer lenders and can take longer to arrange. If the buyer is purchasing your share only, ensure they have a mortgage agreement in principle before you proceed to exchange.
4. Incomplete documentation. The housing association needs to provide information to the buyer's solicitor, and delays in receiving this can stall the transaction. Chase the association proactively through your solicitor.
5. Lease issues discovered late. Problems such as a short remaining lease term, unapproved alterations, orservice charge arrears can cause significant delays if discovered during conveyancing. Review your lease and address any issues before you notify the housing association.

Preparing your property and legal documents

Getting sale-ready early is just as important for shared ownership sellers as it is for anyone else — arguably more so, given the additional steps involved. Here is what you should do before you notify your housing association:

• Check your lease for the nomination period length, pre-emption clauses, and any restrictions on sale.
• Clear any arrears on rent, service charges, or ground rent. Arrears will need to be resolved before completion and can delay the housing association's consent.
• Gather consents for any alterations you have made to the property. If you extended the kitchen or converted a room, you should have the housing association's written permission.
• Obtain a valid EPC. You need an Energy Performance Certificate with at least ten years remaining. If yours has expired, arrange a new one.
• Instruct a solicitor early. Find and instruct a solicitor experienced in shared ownership sales before or at the same time as notifying the housing association. This way, they can prepare documents in parallel with the nomination period.

Pine helps sellers get their legal paperwork together before they find a buyer, which is especially valuable in shared ownership sales where the nomination period creates a natural window to prepare. By having your legal pack ready, you can move straight to exchange once a buyer is found, rather than starting the conveyancing process from scratch.

Government schemes and shared ownership rules

Shared ownership in England is governed by rules set by Homes England, the government agency responsible for affordable housing. The key regulatory framework that affects sellers includes:

• The Homes England Capital Funding Guide — This sets out the requirements for housing associations operating shared ownership schemes, including staircasing provisions, resale procedures, and eligibility criteria for buyers. Housing associations must comply with this guide as a condition of their funding.
• The Model Shared Ownership Lease — Homes England publishes a model lease that most housing associations use as the basis for shared ownership leases. If your lease follows this model, the resale provisions will be broadly consistent with the process described in this guide. Older leases may have different terms.
• GOV.UK Shared Ownership guidance — The government publishes guidance for shared ownership buyers and sellers at gov.uk/shared-ownership-scheme. This includes information on eligibility, staircasing, and the resale process. It is updated periodically and is a useful reference if you are unsure about any aspect of the scheme.

In April 2024, the government introduced updated shared ownership terms for new-build shared ownership homes, including a 10-year initial repair responsibility for housing associations. If you purchased under the newer model lease, check with your housing association whether any repair obligations transfer to the buyer or remain with the association after sale. This is a common area of buyer enquiry on newer shared ownership properties.

What happens to your mortgage when you sell

If you have a mortgage on your shared ownership property, it will be repaid from the sale proceeds on completion day. Your solicitor will obtain a redemption statement from your lender showing the exact amount needed to clear the mortgage, and they will ensure this is paid before any remaining funds are released to you.

Key points to be aware of:

• Early repayment charges — If you are still within a fixed-rate or discounted period, your lender may charge an early repayment fee. Check your mortgage terms or ask your lender for the amount.
• Negative equity — If the RICS valuation comes in lower than your outstanding mortgage, you will need to fund the shortfall yourself. Speak to your lender early if you think this might be an issue.
• Porting your mortgage — Some lenders allow you to transfer your existing mortgage to a new property. If you are buying another home, ask your lender whether porting is an option.

Sources

• GOV.UK — Shared ownership: A buyer's guide (applies to sellers too) — gov.uk/shared-ownership-scheme
• Homes England — Capital Funding Guide, Section 5: Shared Ownership — gov.uk/guidance/capital-funding-guide
• Homes England — Model Shared Ownership Lease — gov.uk/government/publications/model-shared-ownership-lease
• National Trading Standards Estate and Letting Agency Team —Material information in property listings guidance
• RICS — Valuation standards (Red Book) — rics.org
• UK Finance — Lenders' Handbook (shared ownership mortgage requirements) — ukfinance.org.uk

Related guides

• Selling When You Have Shared Ownership

Frequently asked questions