Are Shared Ownership Properties Hard To Sell?

Selling any type of property, including shared ownership houses, can be difficult. Many homeowners wonder, “Is shared ownership worth it?” as it involves some very complex processes and considerations. Shared ownership properties offer an opportunity for first-time buyers to make it to the first rung of the property ladder with a fairly small deposit and mortgage, but there are shared ownership pros and cons to consider.

Shared ownership resales can be more challenging than selling a property under other ownership types. It’s essential to understand the process of selling shared ownership properties and whether it’s worth it in the UK market.

To sell a shared ownership property, owners must follow specific steps, including getting a valuation from an RICS-certified surveyor, obtaining an EPC, and hiring a photographer to enhance the property’s selling points. Marketing the property through the housing association is part of the process, and finding an eligible buyer who meets the property’s shared ownership criteria can take time.

Selling shared ownership flats in London may have its unique challenges, but it’s possible to sell them through various channels, including traditional estate agents if staircase to 100% ownership.

What is shared ownership in the UK exactly? Property shared ownership involves shared ownership of property between the buyer and the housing association. The shared ownership concept allows buyers to purchase part of a property while making rent payments on the remaining portion, making it an attractive option for some, but it is essential to weigh the advantages and disadvantages of shared ownership.

One might wonder, “Is shared ownership a good idea?” as there are advantages and disadvantages to consider. Shared ownership can help buyers get onto the property ladder with lower upfront costs, but it also comes with limitations and potential complexities.

The UK shared ownership has become popular for those looking to own a home, particularly in urban areas like London. However, shared ownership resales in London can still present challenges, and it is very important to understand the resale process and potential costs of shared ownership.

Some important considerations to make when asking yourself if shared ownership is worth it:

1. Shared Ownership Nightmare: While shared ownership can be beneficial for many people entering the housing market, some individuals may face unforeseen challenges or issues that turn their shared ownership experience into a nightmare. These challenges could include difficulties in finding eligible buyers when selling a shared ownership property, disputes with the housing association, or possible financial constraints due to rising rent and increasing mortgage costs. Proper research and understanding of the shared ownership terms and conditions can help to mitigate any potential nightmares that could arise when buying houses on shared ownership.
2. Shared Ownership Houses for Sale: If you are interested in buying a shared ownership property, there are various shared ownership houses for sale across the UK. Potential buyers can explore property listings and contact housing associations or registered providers to inquire about available opportunities.
3. Shared Ownership Flats: Shared ownership is not limited to just houses; it also includes shared ownership flats. Many housing associations offer shared ownership options for flats, providing an affordable way for buyers to enter the property market in urban areas.
4. Sage Homes Shared Ownership: Sage Homes is an example of a company or developer that may offer shared ownership opportunities. Potential buyers can check to see if Sage Homes have shared ownership properties available and inquire about the process and eligibility criteria.
5. Can You Make a Profit on Shared Ownership?: While shared ownership can be a stepping stone to full homeownership, making a substantial profit solely through shared ownership may be challenging. The focus of shared ownership is usually on affordable homeownership instead of property investment. However, if a homeowner staircase to 100% ownership and the property’s value greatly appreciates, they may be able to realise a profit upon selling it in the open market.
6. Disadvantages of Shared Ownership: While it has its advantages, shared ownership also has some disadvantages that must be considered. For example, as the shared ownership property is part-owned by the housing association, homeowners might face restrictions on making modifications. There may also be restrictions regarding subletting the property. Additionally, homeowners may face additional costs such as service charges and management fees. It is important to research the rules regarding modifications, sub-letting and additional costs before deciding on a shared ownership property. 
7. Shared Ownership and Home Improvements: As mentioned above, shared ownership properties may have restrictions on home improvements that can be made or alterations, as these decisions usually require the approval of the housing association. This ensures that any changes made to the property align with their guidelines and do not affect the overall structure or appearance of the development. This benefits you because it keeps others from making changes that could negatively affect the property that you have ownership of. However, it can negatively affect you if there is an improvement or alteration that you want to make and the request to do so is denied.
8. Ownership Property: “Ownership property” is a general term that refers to any property that is owned by an individual or an entity. Shared ownership is just one form of property ownership, and there are various other types, such as freehold and leasehold.
9. What Are Shared Ownership Houses?: Shared ownership houses are properties where buyers purchase a portion of the house and pay rent on the remaining share to a housing association. This allows buyers to own a percentage of the property while they gradually increase their ownership through the process of staircase.
10. Shared Ownership and New Developments: Shared ownership opportunities are not limited to already existing properties; they can also include newly built developments. Purchasing a share in a new construction property allows buyers to be the first occupant of the home, thus enjoying the benefits of a modern and energy-efficient place to live.
11. Are Shared Ownership Properties Hard to Sell?: Selling shared ownership properties can be more complex than selling properties that are under traditional ownership. There is a limited pool of eligible buyers, there is also the involvement of the housing association in the selling process, and specific criteria must be met for potential buyers. These factors can make the selling process longer and more challenging.
12. Shared Ownership and Affordability: Shared ownership can be a viable option for individuals or families who may not be able to afford to buy a property on the open market. It allows them to enter the property market with a lower deposit and mortgage, making homeownership more achievable as long as they meet the criteria.
13. Shared Ownership Conveyancing: Conveyancing for shared ownership involves the legalities of moving the property from one party to another. It includes various legal checks, searches, and paperwork to be sure that there is a smooth transfer of ownership from the seller to the buyer. Homeowners may need to hire solicitors who have experience and knowledge in shared ownership conveyancing to handle the transaction.
14. Shared Ownership Mortgage Options: When purchasing a shared ownership property, buyers should take the time to explore the various mortgage options available. Some lenders offer specific shared ownership mortgages tailored to this type of homeownership, which may have different terms and conditions in comparison to traditional mortgages. It is essential for buyers to compare mortgage deals and to seek advice from mortgage brokers who specialise in shared ownership.
15. Shared Ownership Eligibility Criteria: To be eligible for shared ownership, potential buyers must meet certain criteria that have been set by the housing association or the government. These criteria may include being a first-time buyer, having a household income within specified limits, and not being able to afford a property on the open market. Different housing associations may have slightly different eligibility requirements, so it will be essential to check with them for specific details regarding these factors.
16. Shared Ownership Leasehold: Shared ownership properties are often leasehold properties. This means that the buyer owns the property for a specific period, typically 99 or 125 years. During this time, they have the right to live in and maintain the property. However, the freehold of the property remains with the housing association, and the leaseholder will need to pay ground rent and service charges as specified in the written lease.
17. Shared Ownership Housing Associations: Housing associations play a vital role in shared ownership schemes. They are the co-owners of the property and retain ownership of the share not purchased by the buyer. They also manage the property, collect rent, and provide support to shared owners throughout the homeownership journey.
18. Shared Ownership vs. Help to Buy: Shared ownership and Help to Buy are two different government-backed schemes which are both aimed at helping people to get into the property ladder. While shared ownership involves purchasing part of a property, Help to Buy provides an equity loan that can be used towards buying a new-build home.
19. Shared Ownership Success Stories: Many people have found shared ownership to be a very beneficial and accessible way to become a homeowner. Success stories include individuals and families who were previously unable to afford to get into the property market, finally achieving homeownership through shared ownership. These success stories often highlight the affordability and flexibility of shared ownership schemes.
20. Shared Ownership and Affordable Housing: Shared ownership is often considered a form of affordable housing, as it offers a much more attainable entry point into the property market for many buyers. It has been seen as a valuable tool to increase homeownership rates, specifically for those who are earning lower incomes or who are facing some financial constraints.
21. Shared Ownership and Government Support: Shared ownership is a part of the UK government’s efforts to address the housing crisis. It is one way that they are working to make homeownership more accessible for everyone. It is often seen as a vital component of the government’s affordable housing strategy, as well as the other initiatives that have been put in place like Help to Buy and affordable housing development projects.
22. Shared Ownership and Equity Share: In shared ownership, the percentage of the property that the buyer does not own is referred to as the equity share retained by the housing association. The equity share represents the portion of the property that the buyer pays rent on.
23. Shared Ownership Challenges: While shared ownership has its benefits, it also comes with challenges. For example, finding suitable shared ownership properties in certain locations may be a challenge due to limited availability. Furthermore, the process of staircase and increasing ownership can involve additional costs as well as some administrative complexities.
24. Shared Ownership Property Management: For shared ownership properties, the housing association typically handles property management tasks, such as repairs and maintenance of the communal areas. This arrangement can be advantageous for shared owners, as it reduces the burden of property management responsibilities, creating more time for the shared owners to enjoy other aspects of life in the UK.
25. Shared Ownership and Legal Advice: Considering that there are so many complexities when it comes to shared ownership, both parties should talk to solicitors who are experienced in handling shared ownership transactions. Legal professionals can guide individuals through the process, ensuring all legal aspects are handled correctly.

Overall, selling shared ownership houses or flats may not always be straightforward to understand, and it is essential to understand the process, including conveyancing for shared ownership. It will be important to seek guidance from experts like estate agents or solicitors and considering factors like the possibility of making a profit on shared ownership can help homeowners navigate this aspect of homeownership.