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Selling your Shared Ownership home – the lowdown with L&Q
Embarking on the journey of buying a Shared Ownership home is an exciting time. You might be dreaming of hosting your first dinner party in your new digs or having that first night in catching up on The Traitors in your cosy living room.
However, buying your first home isn’t always the end to the home buying journey. For many first time buyers, the question of “what happens next?” is one which provokes a variety of possibilities and queries.
We know that, more often than not, your first property isn’t your forever home. Whether you’re looking to upsize, relocate, or simply move onto a new chapter in your life, understanding the process and using a trusted housing provider can make all the difference.
Shared Ownership has been a game-changer for many individuals to finally achieve their property ownership goals. The scheme is designed to help first time buyers, or those on lower incomes, to buy a home by purchasing a share of a property – usually between 25% and 75% – often with a considerably lower deposit than when buying outright. As and when a buyer’s financial circumstances change, they can then purchase more shares through a process called “staircasing” or, when the time is right, sell their home.
Providing additional support to hundreds of buyers each year, we have over 60 years of experience in delivering affordable homes. If you choose to sell your Shared Ownership home, our experienced team understands the nuances of the process, ensuring that each transaction is as smooth and efficient as possible.
Through L&Q, it is possible to sell a Shared Ownership home at any time. Initially, as stated in the terms of the lease, we have between four and eight weeks to find a buyer for your home to an eligible Shared Ownership buyer. After the initial two weeks, if a buyer has not been found we will also be marketing at 100% outright for the remainder of the nomination period.
L&Q’s standard fee if we find a buyer is 1.25% + VAT of the full market value, but this may vary depending on the terms of individual leases. A key advantage of partnering with us to sell your property is that we will manage the marketing of your home to potential purchasers, whilst communicating any interest with you and keeping you informed as soon as a buyer has been found. Plus, we will ensure that your sale is progressing with all acting solicitors, who will be facilitating all legal aspects of the sale.
In the unlikely event the property does not sell during that eight week period, you can instruct an estate agent and sell on the open market. We would not charge a selling fee in this situation, however our solicitor’s costs would still be payable. Like staircasing, the price of the home will be based on a RICS valuation which will determine the market value at the time, and this can rise and fall along with the housing market.
Shared Ownership helped Joanne take both her first and second step onto the property ladder. After purchasing her first apartment from L&Q in Erith, her circumstances changed. She explains: “I went through the staircasing process twice, once to purchase 75% and the second time, in 2020, to 100% – meaning I owned the place outright – which was a great feeling.”
Having spent 12 years in her property in Erith, Joanne decided it was time to move on and sell her Shared Ownership property.
“I had 12 great years in my L&Q Shared Ownership home! However, during the pandemic, like most people, I was working from home – giving me the freedom to start thinking about a move out of London. As I had staircased to 100%, I was able to sell my home on the open market.
“I sold my home in Erith for £221,500 and bought a new home from L&Q in Three Bridges for £250,000… it’s a great feeling that I am now on my second property, and I definitely wouldn’t have been able to do this without using Shared Ownership.”
To find out more about L&Q’s homes, visit lqhomes.com or come and speak to the L&Q team at the London Home Show.
Attend the London Home Show
Tickets for the London Home Show are free, but visitors must register in advance to attend. For more information, or to reserve your place at the capital’s no.1 first time buyer event, please visit the Eventbrite page.
Share to Buy is a one stop shop for affordable homes. On our website, you can search for properties, compare mortgages and find out all you need to know about alternative home-buying schemes such as Shared Ownership via our article index.