Resale in Shared Ownership Property Valuation

Resale in Shared Ownership Property is the process of selling a shared ownership property to another eligible buyer in the secondary market. In the realm of shared property ownership, the concept of “resale” plays a pivotal role. Shared ownership schemes have gained immense popularity in the UK, offering a pathway to homeownership for those who may not have the financial means to buy a property outright within a modern building located in an area of choice. But what happens when you decide to sell your shared ownership property and move on to pastures something new? This is where resale comes into play. In this article, we will explore what resale in a shared ownership property valuation entails, how the process works, and the key factors to consider.

Understanding Shared Ownership

Before delving into the intricacies of resale, let’s establish a foundational understanding of shared ownership. Shared ownership is a government-backed initiative in the UK that allows individuals to purchase a share (typically between 25% and 75%) of a property while paying rent on the remaining portion. This arrangement is particularly attractive to first-time buyers and those with limited means looking to enter the property market.

Shared ownership properties are managed by housing associations or registered providers, and they come with certain rules and regulations that ensure fairness and affordability. However, life is full of changes, and homeowners may find themselves needing to sell their shared ownership property for various reasons, such as job relocation, changes in family circumstances, or simply wanting to move on to a different property.

The Role of Resale in Shared Property Valuation

Resale is the process of selling a shared ownership property to another eligible buyer in the secondary market. It’s an essential component of shared ownership property valuation for several reasons:

Maintaining Affordability: Resale helps maintain the affordability aspect of shared ownership. When an existing shared owner decides to sell their property, it provides an opportunity for a new buyer to enter the shared ownership scheme, thereby continuing the cycle of affordable homeownership.

Offering Flexibility: Resale offers flexibility to shared owners who may need to move or change their living arrangements. It ensures that shared ownership remains a dynamic and adaptable homeownership option.

Unlocking Equity: For shared owners, resale can be a means to unlock the equity they have built in their property. As the property’s value appreciates, they can sell their share at the current market value, potentially reaping a financial benefit (subject to market fluctuations).

The Resale Process

The resale process in shared property valuation involves several key steps:

1. Notify the Housing Association: If you decide to sell your shared ownership property, the first step is to notify your housing association or registered provider. They will guide you through the process and provide important information about your rights and responsibilities as a seller.

2. Valuation: To determine the market value of your property, a qualified RICS surveyor or valuation surveyor will conduct a valuation. This valuation is crucial because it sets the price at which you can sell your share.

3. Find a Buyer: Initially, your housing association or registered provider reserves the option of marketing the property first instance. First  You can then market your property through various channels, such as estate agents, property websites, and local housing associations. The buyer must meet the eligibility criteria for shared ownership to qualify.

4. Offer to the Housing Association: Once you have a potential buyer, you must provide details of the sale to your housing association. They have the right of first refusal, meaning they can nominate a buyer if they have an eligible applicant on their waiting list.

5. Legal Process: Like any property transaction, the sale involves legal processes, including conveyancing and the exchange of contracts. You and the buyer will need solicitors to handle these aspects, preferably with prior knowledge of the Shared Ownership system.

6. Mortgage Arrangements: The buyer will typically need a mortgage to purchase their share. They will arrange this with a mortgage lender or Independent Financial Adviser (IFA).

7. Completion: Once all legal requirements are met, and the buyer’s mortgage is approved, the sale can be exchanged completed. The property’s ownership is transferred to the new buyer on completion, and they become the shared owner.

Factors Affecting Resale

Several factors can influence the resale process in shared property valuation:

1. Property Market Conditions: The state of the property market at the time of resale can impact the selling price and the time it takes to find a buyer. In a strong seller’s market, properties tend to sell more quickly and at higher prices.

2. Valuation Accuracy: The accuracy of the property valuation is crucial. An overvaluation can deter potential buyers, while an undervaluation could lead to a financial loss for the seller. Hence the importance of a RICS-qualified surveyor or valuer.

3. Eligible Buyers: Finding eligible buyers who meet the shared ownership criteria is essential. Your housing association can assist in this regard by connecting you with potential purchasers on their waiting lists.

4. Solicitor and Mortgage Lender Choice: The efficiency and experience of your solicitor and the buyer’s mortgage lender can influence the smoothness of the resale process.

5. Affordability: Shared ownership properties must remain affordable for buyers. Setting a reasonable selling price is vital to attract potential purchasers.


Resale is an integral aspect of shared property valuation in the UK. It allows existing shared owners to move on to new opportunities while providing a chance for eligible buyers to enter the shared ownership scheme. Understanding the resale process, including property valuation, legal requirements, and eligibility criteria, is essential for both sellers and buyers in the shared ownership market.

Ultimately, resale ensures that shared ownership remains a dynamic and accessible option for those looking to step onto the property ladder. It embodies the principles of affordability, flexibility, and equity-building that make shared ownership such an attractive choice for many aspiring homeowners in the UK.

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