Once you have all the necessary information, you should complete the Shared Ownership Resale Instruction form. We will send this to you once we have received a copy of your market appraisal or valuation. You should return this as quickly as possible as the valuation is only valid for three months from the date on the report.
Please make sure you send us all of the following.
- The fully completed Shared Ownership Resale Instruction Form
- The RICS valuation or approved market appraisal report for your home.
- A copy of your EPC or proof that you have arranged it.
- A copy of your lease
- A copy of any licences or permissions you have been issued prior to you making any alterations or improvements to your home
You can send us the above information by email: email@example.com
Or by post: Homeowner Services, 30 Brock Street, Regents Place, London NW1 3FG
What happens next?
To give you an idea of how long everything may take, we have broken it down so you can see what needs to be done.
- Once we receive your form, we will set up your details on our system (as long as you have sent us everything we need). We will then market your home to people on our database. We normally do this within five working days of your paperwork arriving. Interested people will get in touch with you to arrange a time to look at your home, or show up on the day you have arranged for a viewing.
- After the viewing, we will offer the property to a buyer (selected through assessing their needs). They have three working days to accept the offer.
- We will then begin the financial eligibility checks with the buyer to make sure they can afford your home. If they pass this, we will ask them to choose a solicitor and give us details of their mortgage provider within three working days.
- When we have all the solicitors’ details, we instruct your solicitors, the buyer’s solicitor and our solicitor to begin the process of selling your home (known as ‘conveyancing’).
- Once we have instructed the solicitor, it is up to you and the buyer to let us know if you need any help with anything. We will not ‘chase’ your buyer once the solicitors have been instructed. We will also not communicate anything directly to your buyer or their solicitors, as our instructions must come from you.
- It should take around four to six weeks for the buyer’s mortgage offer to come through.
- Your solicitor will send a list of specific enquiries to us after the survey has come back from the buyer. This is part of a legal process and it can take us up to 10 working days to respond to these enquiries. There is a fee for these specific enquiries.
- Your solicitor will let you know once all the conveyancing has been completed and you are ready to exchange.
- There is usually at least 10 working days between the exchange and the sale completing to allow money to transfer.
You are likely to have to pay the following costs:
- Your Valuer’s fee
- The cost of an EPC
- Your own legal fees
- The solicitor’s fees for passing on the lease to the new buyer
- The resale fee that we charge
- The fee for answering your solicitor’s enquiries
- If you are selling a property that is restricted to people over a certain age (i.e 55 years of age), your lease may require you to make payments to the sinking fund once the sale has completed. The sinking fund is money set aside for major work. If this applies, then the amount you need to pay will be worked out depending on how long you’ve owned the lease.
- If you withdraw your property from sale after instructing solicitors, for any reason, you will need to pay a cancellation fee to our solicitor.
Things to consider
The average timescale to sell a home is around twelve weeks from approving the buyer’s application. However, there are a number of things that can cause delays:
- How soon can the surveyor value your property? (If they are busy, it could take up to two to three weeks for them to value your home and write their report.)
- Delays with the buyer’s mortgage lender approving a loan.
- Postal delays. (If you are in a hurry, email the forms and also put a copy in the post.)
- If either the buyer or seller has any holidays planned.
Remember the above timescales are for guidance only – sales can take a few weeks, or many months if there are legal, survey or communication problems. As mentioned earlier, we do not chase your buyer once the solicitors have been instructed. We will, however, try and help to sort out any problems – let us know if you need our help or advice.
If you are part of a chain
Being part of a chain in shared ownership always involves some risk – the same risks you would face if you were buying or selling in a chain on the open market. You can decide to make an offer on another property before or after you have found a buyer for your home. There are advantages and disadvantages to both options which you must consider.
If you have already made an offer on another property
Remember that, as part of your lease, we have a nomination period to find you a buyer for your share. We can only start marketing your property when we have received your valuation, resale instruction form, and proof of an EPC instruction. The person selling to you must be prepared to wait until you have found a buyer for your home or you risk losing mortgage and solicitors’ fees if they decide to pull out. The normal conveyancing process will still take time even when you have found a buyer.
Improvements and alterations you may have made to your home
Your lease requires you to get our written permission before carrying out any alterations and improvements to your home. You may have made improvements to your home, but if you have not obtained our permission then this may be a considered a breach of your lease terms. You will need to rectify this breach before your sale can complete.
Please note that we do not take into consideration any increases in value your alterations and improvements may have made to the property when determining the sale price.
If you have a buyer, but you have not found a new home
You must make your buyer aware that you have not yet had an offer accepted on a property. They must be prepared to hold off exchanging contracts until you have found a property. If you exchange before you have an offer accepted, you risk being made homeless or your buyer taking legal action against you if you fail to complete on the sale.
Setting a deadline
When you’re selling your home, you may want to set a deadline for the exchange to go through. We can let the buyer know what deadlines you have set.
The deadlines should always be reasonable – for example, four to six weeks to exchange contracts from the date we approve the buyer. You may want to set a longer deadline – it’s up to you.
After the interview, your buyer should instruct their own solicitor and will usually arrange for a survey of your home. If you don’t hear from them within two weeks with a survey date, let us know and we will ring the buyer to find out what is happening.
Your relationship with the buyer
The most successful sales are those which take place between a seller and buyer who talk to each other. There will always be problems selling a home and if you can settle these by talking together you will save time and trouble later on. If you’re not sure what is happening with your sale, ring the buyer – they are in the best position to know. If you don’t get on with your buyer, you can ‘talk’ to them through your solicitor, but this obviously takes longer. The solicitor may also charge you for the time they spend sorting out the problems.
The valuation sets the price of your share and you usually cannot sell for more than this amount.
When we send buyers to see your home, we’ll have told them the valuation and you do not have to accept lower offers – unless you want to. If you do however, you’ll only be able to negotiate on the share that you own. Guinness will still have to take the retained percentage of the market valuation when the sale completes.
When the buyer goes ahead after we’ve assessed them, they will usually get a valuation of their own from a building society or bank. This may turn out to be lower than your valuation and means the building society or bank will only lend a mortgage on the lower amount. If this happens, you and the buyer can negotiate if you want. In other words:
- you may agree to lower the price of your share to match their valuation;
- they may agree to put in savings to top up their mortgage to match your original price; or
- you may agree to meet somewhere in the middle – you lower your price and they put in a bit extra.
The last one is the most common result.
If you can’t agree, the sale will fall through. We cannot advise you on the best solution – it depends on the difference between the two valuations, how much the buyer has in savings, how much they are relying on getting the mortgage, and so on.
If in doubt, talk to us, but we will not be able to reduce the value of our share as we must go by the market valuation. If the sale falls through within the two-month period, we will try to find another buyer. You are not automatically free to sell on the open market.