Selling your shared ownership home
Why do I have to sell my shared ownership home through L&Q?
Your lease states that we have a nomination period to try and find a buyer for your home. This is to help other first-time buyers get on to the housing ladder via shared ownership.
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 determined by the terms of your lease but is generally between 1% and 1.25% of the full open market valuation.
Selling your home if you live in our apartment blocks
Some residents/buyers in our apartment blocks may experience issues securing mortgages as a result of changes in building safety advice. You can find out more about these changes here. Please seek advice directly from your lender or mortgage broker before applying to ensure you do not incur any unnecessary valuation or solicitors' costs.
First steps – the valuation
The first stage of selling involves instructing a surveyor to value your home. As stated in your lease you must instruct an independent valuer, qualified through the Royal Institution of Chartered Surveyors (RICS).
We have a panel of surveyors [PDF, 60 KB] for you to choose from.
The surveyors on our panel are independent of L&Q and are qualified by RICS. They have a wealth of experience in valuing homes and offer preferred rates to L&Q customers and residents.
Once you have decided who you wish to use to value your home, you must contact your chosen surveyor directly quoting reference ‘LQ-Resales’.
The surveyor will contact you to arrange to visit your home, normally within five working days. They will collect payment of their fees, and then provide you with a valuation report which sets the price at which you can sell your share. This price will take in to account the length of lease you have remaining and will be deemed to include any home improvements that you may have made.
You also have the option to instruct a RICS registered surveyor of your choice; however, they must meet certain criteria, details of which can be found in our leaflet for instructing your own independent surveyor [PDF, 34 KB].
Photos, floorplans and the Energy Performance Certificate (EPC)
On receipt of your valuation report, we will instruct an independent marketing company to take professional photographs of your property, provide us with a floorplan and an Energy Performance Certificate (EPC)*. From 1 September 2020, we'll also be providing 3D imagery which will allow prospective purchasers to virtually walk-through your home.
L&Q will cover the cost of this service as part of the resale administration fees.
In order to comply with data protection regulations, we need your permission to pass on your details to our marketing partner. You must sign a GDPR declaration form [PDF, 30 KB] and return it to us with the valuation report.
*To comply with European Legislation, an EPC must be provided to perspective purchasers.
Next steps – confirmation of sale
Once you are in receipt of the valuation report and are happy to proceed, you will need to provide the following documents to us:
- A copy of the valuation report
- A signed GDPR declaration form [PDF, 31 KB]
- A copy of your lease if you have it.
Once we have checked through the valuation to ensure it is in line with the current market, and we are in receipt of the photographs, floorplan and EPC for your property, we will send to you a “Confirmation of sale” document outlining all of the sales particulars – this is the information that will be used to market your property on the internet.
You need to carefully review the sales particulars and confirm to us you are happy to sell. We would strongly suggest that you do not make an offer on another property until we place your home on the market.
Once we receive the signed confirmation of sale documents back from you, we will list your property on various websites.
Marketing and viewings
During the nomination period when we are marketing your home you are not permitted to sell your home, either privately or through an estate agent.
Once your property is listed on the various web portals, we will provide your contact details to anyone who is successfully registered for shared ownership and who wishes to view your property. They will then contact you to arrange a viewing at a mutually convenient time.
If for any reason you cannot honour the viewing dates once they have been arranged, you will be required to contact the viewers directly to cancel or rearrange with them.
After viewing your home, any potential buyer will need to submit a reservation form to us.
Once we are in receipt of the reservation forms we'll allocate the property in line with our selection and allocation policy.
The successful applicant will be required to pay us a reservation fee of £500.00 (which is refunded on completion). They will also be required to attend a financial interview in order to fully check their affordability. After a successful interview, solicitors will need to be instructed by all parties.
Once a buyer is in place we will instruct solicitors to act to us, and you will need to appoint your own solicitor. We have a list of conveyancing solicitors [PDF, 35 KB] that have experience of shared ownership that you may wish to use.
Once instructed, your solicitor will be expected to provide your buyers solicitor with responses to management enquiries. This is known as a Landlords’ Enquiry Pack (also referred to as an LPE1). The Landlords’ Enquiry Pack can be provided electronically and there is a fee for providing the information. For the current fees payable, please refer to our list of homeowner admin fees [PDF, 38 KB].
Your solicitors will be contacted directly regarding this pack after they have received instruction from us. As you are a leaseholder you are responsible for covering this cost. If you also have an independent managing agent your solicitor will also need to contact them directly for confirmation of any additional costs they may charge. Details of any applicable managing agent will be provided to your solicitor at the appropriate time.
Please note that the compilation of the Landlords’ Enquiry Pack can take up to 15 working days so it is imperative that your solicitor requests this in good time.
What if there’s no buyer at the end of the nomination period?
If there's no buyer after the nomination period ends, we'll waive our nomination rights and send you a letter advising of you of the process in order to sell your home on the open market via an estate agent.
Please note, as the buyer for your property will not have been introduced by L&Q, you'll be responsible for covering our solicitor costs as we'll be waiving our resale admin fee.
You'll be responsible for paying your estate agent fees and your own solicitors costs.
You would not be able to accept a lower offer than the RICS valuation unless you're prepared to take the full shortfall (not just the % share you own). You will be able to accept a higher offer. Where this is achieved, you will be able to keep 100% of the additional monies received.
If we find a buyer for your home we will charge a percentage admin fee based on the full market value of your property, plus VAT. The percentage admin fee payable is outlined in your lease but is generally between 1% and 1.25% of the full open market valuation. We will advise of the relevant percentage amount in the confirmation of sale particulars.
As part of the sale process we would recommend speaking directly to one of our financial consultants [PDF, 37 KB] as we think you will benefit from their advice and experience.
If you require any further information on selling your property, please do not hesitate to contact the Homeownership team or call us on 0300 456 9998.