Selling your Shared Ownership Home
To help you through the process of selling your shared ownership home, we've answered some of the more frequently asked questions below. If you prefer, you can also watch our video guide. For any additional questions, please contact us.
Why do you have to sell your shared ownership home through L&Q?
Your lease states that we have an eight-week nomination period to try and find a buyer for your home. This is to help 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.
If we find a buyer for your home, you'll be charged an administration fee. This fee is 1.25% of the market value house plus VAT. We feel this is competitive compared to many estate agents.
What does this fee include?
We'll instruct your valuation and liaise with the surveyor on your behalf. A member of our staff will meet you at your home to take property details and photographs so that we can prepare the marketing literature needed to sell your home.
Once your home is on the market we'll contact any applicants on our database and other housing providers or local authorities for further nominations. We'll also advertise your home on the L&Q website and online property portals.
If there's been no interest in your home after a couple of weeks, we can put a 'for sale' sign outside your home or advertise in the local newspaper.
Energy performance certificate EPC
As a homeowner, you're expected to provide prospective purchasers with an EPC. This reports on energy saving and offers a rating for your home. It's a European legislation requirement for anybody selling their home. The marketing of your home can only begin once L&Q has received confirmation that EPC has been commissioned and received.
You'll be responsible for the cost of your EPC. L&Q have a panel of EPC providers offering preferred rates to L&Q customers. You also have the option of using an independent provider of your choosing.
Once we've received your valuation we'll let you know the value of your property - 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 be valid for three months only - a desktop valuation will be needed after this time. It's your responsibility to make sure you have an up-to-date valuation that will allow you to exchange contracts.
The process explained
Following on from your resale visit, you'll receive a confirmation of sale letter detailing the particulars of your sale along with the valuation report and draft sale sheet. Make sure you're happy with the sales details and then sign and return the confirmation of sale slip to us. Once we have the slip and have confirmed that your EPC has been commissioned and received, we can begin to market your home.
We'll request that suitable applicants contact you directly to view your home. We advise that you don't make an offer on another property until yours is under offer.
After viewing your home, any potential buyer will need to contact us to submit a reservation fee this fee is refunded if we are unable to offer the home.
After receiving a reservation form we'll check that we have their up-to-date details and allocate in line with our selection and allocation policy. This is normally within 48 hours and is subject to a successful financial interview that they'll need to attend to check their affordability.
After a successful interview, both you and your buyer will need to instruct a solicitor (you're required to cover your own legal fees). The sale is then in their hands, and you will need to keep in regular contact with them to make sure things are moving forward. We'll not have any direct involvement from this point on, but we're happy to help if required.
Management enquiry pack
Once solicitors have been instructed the buyer's solicitor will obtain a copy of your lease and raise leasehold enquiries some of which form the management enquiry pack. Your solicitors will be expected to provide a response to these enquires by getting some information from your managing agent. It is standard practise for a managing agent to charge an admin fee for this. If your managing agent is L&Q, our leasehold department charge for this service and we charge competitive fees compared to managing agents. If it's an independent company, your solicitor will need to contact them directly about their costs.
What if there's no buyer after eight weeks?
If there's no buyer after eight weeks, we'll waive our nomination rights and send you a letter detailing your options. If you decide to sell via an estate agent, you can sell for either the full market value or the share. If you find a buyer for the share, you have to sell at the current market value stated on your up-to-date valuation report - we are unable to accept offers. Please note, if a buyer for your share has not been introduced by L&Q, you'll be responsible for covering our solicitor 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, but L&Q would still require our share based on this sale price. You'll be responsible for paying your estate agent fees. You would not be able to accept a lower offer unless you're prepared to take the shortfall.
What happens next?
Please let us know if you decide not to sell and we'll close your file. If you do decide to sell, you'll need to instruct your EPC and make sure that your provider has emailed us with confirmation that it has been commissioned and a copy of your EPC when available. Also, sign and return your confirmation of sale slip. The marketing process can then begin.
Shared owners who wish to sell their property should contact the Resales team
The lease contains a clause stating that properties must be offered to L&Q to find a customer from our waiting list.
If you are an Equity Loans customer, you'll need to follow the same procedure as you would for staircasing. This will involve having an independent valuation carried out. No offers for the purchase of the property should be accepted until the amount due to L&Q on completion has been advised and accepted.
If you are a Homebuy, Key Homebuy or Key Worker Living customer, there is an administrative charge for dealing with your application. See our leaflet on administrative charges:
If you require any further information on selling your property please contact us.