What to Know About Shared Ownership Sales in Birmingham
Selling a shared ownership property can be complex, especially when you need to balance lease conditions, housing association requirements, and buyer interest.
Unlike a standard property sale, shared ownership sales have extra steps to follow before you can complete. Carry on reading to understand the key points that shape this process and how you can prepare.
Understanding How Shared Ownership Sales Work
Shared ownership allows you to own part of your home and pay rent on the rest. When you decide to sell, you can sell your share or, if you’ve staircased to 100%, sell it outright.
As a part owner, the housing association typically gets first chance to locate a buyer during a specific timeframe. Only when that time passes without a buyer can you advertise the property on the open market.
This process can be different from a normal sale, which is why many homeowners in Birmingham turn to Birmingham conveyancing solicitors. They understand housing association procedures and council requirements, which can reduce delays and help your sale move forward more smoothly.
Valuation Requirements Before a Sale
Before putting your home on the market, a RICS surveyor must provide a valuation. This valuation decides the price of your share and ensures fairness for both you and the housing association.
It’s important to know that you can’t set your own figure, and the valuation is usually valid for three months. When the sale stalls during this period, you’ll have to cover the cost of another valuation.
The Role of Your Housing Association
Housing associations have a direct role in shared ownership sales. They’ll check the terms of your lease, review the valuation, and make sure the buyer meets eligibility requirements.
Should they locate a buyer in this timeframe, you must sell at the determined price.
You’ll need to provide documents like your lease, service charge accounts, and details of any staircasing you’ve done. Clear communication with the housing association helps avoid hold-ups and makes the process less stressful.
Legal Steps in the Sale
The legal work for shared ownership sales involves everything from verifying lease terms to handling the transfer of ownership. Your solicitor will check restrictions in the lease, confirm ground rent and service charge details, and prepare the contract pack for the buyer’s solicitor.
Because shared ownership properties involve more than one party, such as the buyer, seller, and housing association, sales can take longer. Working with a lawyer who knows shared ownership well helps avoid confusion and maintains momentum.
Reselling on the Open Market
When the housing association fails to secure a buyer, you’re free to list it publicly. However, you’ll still need their approval of the buyer.
The buyer must meet shared ownership rules, which usually involve income thresholds and being a first-time buyer or someone unable to buy outright.
This requirement ensures the scheme continues to support those it was designed for. Even on the open market, the property doesn’t become a standard sale until the buyer staircases to full ownership.
Final Thoughts
Selling a shared ownership property in Birmingham involves more checks and steps than a normal sale. You’ll need a formal valuation, involvement from your housing association, and legal checks that confirm all lease conditions are met.
With the right professional guidance and an understanding of the process, you can avoid unnecessary setbacks and move towards completion with confidence.
