SELLING YOUR SHARED OWNERSHIP HOME A GUIDE FROM SOVEREIGN LIVING

SELLING YOUR SHARED OWNERSHIP HOME A GUIDE FROM SOVEREIGN LIVING

A SIMPLE GUIDE TO SELLING YOUR SHARED OWNERSHIP HOME

WHEN YOU WANT TO MOVE ON Congratulations on choosing Shared Ownership, a great way to help you buy your own home. When you need to move on, this guide explains the simple ways in which you can do this.

THE TWO ALTERNATIVE WAYS TO SELL YOUR SHARED OWNERSHIP HOME 1 SELLING YOUR SHARE Under the terms of your Shared Ownership lease and in accordance with legislation you are obliged to allow Sovereign four weeks to nominate an eligible buyer to buy your share at a set price. 2 STAIRCASING TO FULL OWNERSHIP AND SIMULTANEOUS SALE You can instruct an estate agent to sell your home on the open market at the full 100% market value using the staircasing method described in your lease. To facilitate this we can advertise your property on our website to help you find a buyer who wishes to purchase your home on a Shared Ownership basis. After these four weeks we can continue to market your property for you, or you can find a buyer for your share yourself, or use an Estate Agent. For both of these options you ll need to send us a RICS valuation (not an estate agent valuation). See opposite for more details.

WHAT IS A RICS VALUATION? The Royal Institute of Chartered Surveyors (RICS) is the UK s leading professional body for qualifications and standards in land and property. To sell your home you will need to instruct and pay for a RICS Valuation which is used to determine whether the value of your share has changed since you bought the property, and therefore defines the price your share needs to be sold at. In accordance with your lease you cannot sell your share for more than the RICS valuation. HOW DO I GET A RICS VALUATION? You can search for a local RICS qualified surveyor on the RICS website www.ricsfirms.com. HOW LONG WILL A RICS VALUATION LAST? The valuation must not be more than three months old. Should the sale not complete within three months you ll need to update your valuation. We suggest asking your surveyor whether they ll issue updates to the valuation report every three months for little or no cost.

OPTION 1 SELLING YOUR HOME USING THE SHARED OWNERSHIP SCHEME We recommend that you first get an idea of the value of your home. You could try Zoopla (www.zoopla.co.uk) to get an indication of the current value. To proceed with selling your home using the Shared Ownership scheme you should send us the following: Energy Performance Certificate (EPC, see over for details). Up to date RICS Valuation (This must either be an original or an email directly from the surveyor). Photos of your home Description of your home Your contact details for interested buyers Details if your chosen solicitor HOW DO I PROCEED WITH OPTION 1? Simply email living@sovereign.org.uk with your EPC, RICS Valuation, photos, solicitor details and description. We will add them to our website and any interested buyers who wish to view your home can contact you directly. We aim to get your home advertised on our website within five working days. IMPORTANT NOTE By sending your information and contact details you are consenting to us publishing your contact details on our websites and other media. If Sovereign does not nominate a buyer within 4 weeks then you may sell your share on the open market. Sovereign will still need to approve the buyer. Please note that you cannot sell your share for more that the RICS valuation. There will be an administration fee payable to Sovereign in these circumstances. Other administration charges apply - please see seperate scale of fees.

WHO WILL DO THE VIEWINGS? Buyers will contact you directly and you will be able to arrange a suitable date and time to show them your home. HOW IS THE BUYER APPROVED? Once a suitable buyer is found they will need to complete an application form with the local Help to Buy Agent www.helptobuy.org.uk to ensure they are eligible. They will also be required to contact one of our approved financial advisors. Please see seperate sheet for a list of approved financial advisors online at sovereignliving.org.uk. WHAT FEES WILL SOVEREIGN CHARGE? The administration fee is indicated in your Shared Ownership lease and is a maximum of 1% of your Shared Ownership value plus VAT if Sovereign nominate a Buyer. This is a lease assignment (transfer) fee set by your lease.

WHAT IS AN EPC? Energy Performance Certificates (EPCs) are needed whenever a property is sold. An EPC gives a property an energy efficiency rating from A (most efficient) to G (least efficient) and it is valid for 10 years. HOW DO I GET AN EPC? You ll need to find an accredited assessor. They will assess your property and produce the certificate. Some of our customers have told us that they have used Nationwide EPC www.nationwideepc.com and found their prices competitive. This is not a recommendation and you should check whether you are happy to proceed with them. DOES MY HOME HAVE A VALID EPC ALREADY? You can search the central EPC register www.epcregister.com to check if you already have a valid EPC for your home.

OPTION 2 STAIRCASING TO FULL OWNERSHIP AND SIMULTANEOUS SALE This Option is not available on 80% Restricted Staircasing Leases please check your lease Some Shared Ownership leases allow you to staircase to full home ownership and sell your home at the same time. This allows you to find a buyer who wishes to purchase your home on the open market at 100% share. Sovereign will still need to approve any buyer. There may also be some restrictions on who you can sell to (these are known as Section 106 Restrictions and are imposed by the Local Authority at the point of granting planning permission to build your home). You would instruct an estate agent to market your home and undertake viewings. You would still need to provide us with a RICS Valuation as this will determine the value of the share that is paid back to Sovereign. The lease strictly states that the valuation must be no more than three months old when you complete the final staircasing. You should speak to your solicitor so that you fully understand the staircasing transaction and any costs before proceeding with Option 2. Your estate agent should arrange to take photos, room measurements and write a description of your home. They will usually create sales particulars and most would then market your home using Rightmove or Zoopla. HOW DO I PROCEED WITH OPTION 2? Simply email staircasing@sovereign.org.uk with the following: Up to date RICS Valuation (This must either be an original or an email directly from the surveyor). Details of your solicitor Details of your estate agent WHAT FEE WOULD ESTATE AGENTS CHARGE? This varies and is usually negotiable. We recommend speaking to a few estate agents to get an idea of their prices. It is your responsibility to pay for these charges. WHAT FEE WOULD SOVEREIGN CHARGE? There is an administration fee for dealing with your application, which can be seen at sovereignliving.org.uk. WHAT ABOUT STAMP DUTY? You should check with your solicitor whether any stamp duty might be payable on staircasing or check with HMRC.

USEFUL INFORMATION AND TIPS FOR SELLING YOUR HOME TAKE GREAT PHOTOS OF YOUR HOME We find that the better photos you are able to take, the more successful you will be in selling your home quickly. Here are a few hints and tips: Make the most of natural light by pulling back curtains or blinds Mix daylight and artificial light if you have smaller lighting like table-lamps, use these to add additional focal points and a more homely feel to your photo Tidy rooms to make the most of the space available Dress your rooms if you can; a kitchen table laid for breakfast will look a lot more appealing to a perspective buyer Avoid your own reflection whilst taking photographs near shiny surfaces or mirrors Be patient; generally the more time you can put in to making your rooms look just right, the better your results will be. WRITE A GOOD DESCRIPTION Start by describing your home, try and capture its unique selling point in your introduction; is it a modern two bedroom home close to the local train station, or a stylish apartment on the edge of woodlands for example. Make sure you detail all of the rooms, and describe each room as best you can, including features like flooring, fireplaces, built-in wardrobes, or fitted appliances. Detail any outside space, and describe what it s like, for example rear garden laid to lawn with large established flower beds or driveway with space for two cars and access to local footpath. Finally make sure you appeal to your audience, things like child friendly garden, or close to local shops and nightlife can help your potential buyer understand what life might be like if they buy your home.

0300 330 0718 sovereignliving.org.uk Sovereign Living is a non-charitable subsidiary of Sovereign Housing Association Limited, a charitable association. We operate a policy of continuous product development and individual features such as windows and elevational treatments may vary. Consequently, particulars contained within this document should be treated as general guidance only. They do not constitute a contract, part of a contract or a warranty. Computer generated images and photographs are for illustration purposes only and do not accurately depict individual plots. Dimensions provided are for general guidance and are not intended to be used for carpet sizes, appliances, spaces or items of furniture. HO-27869 Oct15 Inh