Selling shared ownership property

FTC2019 · 2025-06-21T18:01:48+00:00

I have a shared ownership house with 81 yr (+9m) lease remaining, am I going to face lease issues selling? It'll be thousands to extend the lease, so HA said I can sale 100% with the freehold, then they take their share. I'd like to proceed the quickest option though (estate agent fees are also ridiculously high!). Is it worth still trying to sale as shared ownership with the lease as is? I know it narrows down lenders but some main ones like Nationwide, Halifax & Natwest wouldn't have an issue with it. Has anyone experience with this?

Wot23 · 22/06/2025 16:02

can we just check you are using the correct wording as you seem to be talking about 2 separate issues ...

you mention it is shared ownership, so:
Q1 what % of the property do you currently own?
Q2 you say the HA will agree to sale of 100% freehold, but if you do not already own 100% then I cannot imagine they are giving it away for free? Also, just as important, you might have to pay SDLT to get to 100% even if that money is deducted directly from your sales proceeds rather than you having to make an actual separate tax payment.

you mention 81yr lease, so yes that is close to the point where lenders start making it more difficult to get a mortgage, but if it is shared ownership anyway, the lender may have different criteria for purchasers acquiring with a "short" lease.

fataroundthemiddle · 22/06/2025 16:46

I also have a similar problem…I’ll just butt in..
Mother in nursing home, no chance of her coming home.Owns 25% of her home (HA). Is self funding completely. I’ve been keeping the house alive, for 3 years now, paying the rent, utilities and gardener.Really just postponing the inevitable while hoping to raise the full amount myself… but admit defeat and now the house needs to go. Need the money for the care home. No one gives me a complete answer as to where I stand (POA), neither HA, carehome or council. Mother’s money is finished… we are down to the last few £1000,s… I don’t have or intend to fork out a thing as they’ve already bled mother dry. She is and has been completely dependent on others after 5 strokes, and I have lived out of the UK for the last 50 years. I stepped in as POA as she had no one else, don’t regret it but I don’t know what to do now.
sorry I interrupted. It’s a leasehold

Wot23 · 23/06/2025 19:10

fataroundthemiddle · 22/06/2025 16:46

I also have a similar problem…I’ll just butt in..
Mother in nursing home, no chance of her coming home.Owns 25% of her home (HA). Is self funding completely. I’ve been keeping the house alive, for 3 years now, paying the rent, utilities and gardener.Really just postponing the inevitable while hoping to raise the full amount myself… but admit defeat and now the house needs to go. Need the money for the care home. No one gives me a complete answer as to where I stand (POA), neither HA, carehome or council. Mother’s money is finished… we are down to the last few £1000,s… I don’t have or intend to fork out a thing as they’ve already bled mother dry. She is and has been completely dependent on others after 5 strokes, and I have lived out of the UK for the last 50 years. I stepped in as POA as she had no one else, don’t regret it but I don’t know what to do now.
sorry I interrupted. It’s a leasehold

as POA you are legally required to act in mother's sole interest, not with an eye to your inheritance.

if the property is now her only remaining source of capital then it must be sold, and quickly. End of discussion.
To do that you need to be sure you have priced it to sell, not priced it sky high, nor (and I grant this is hard to get right) have you under priced it.
Obviously start by making sure the HA does not have a buy back clause which is still active, although if it does, then the sale should be very simple.

fataroundthemiddle · 24/06/2025 10:25

Wot23 · 23/06/2025 19:10

as POA you are legally required to act in mother's sole interest, not with an eye to your inheritance.

if the property is now her only remaining source of capital then it must be sold, and quickly. End of discussion.
To do that you need to be sure you have priced it to sell, not priced it sky high, nor (and I grant this is hard to get right) have you under priced it.
Obviously start by making sure the HA does not have a buy back clause which is still active, although if it does, then the sale should be very simple.

Edited

Show quote history

Thanks for your answer. I know I must act in mothers interest. I know I need to sell the house.. HA say, yes sell it. I've had an estate agent around to advise me, I'll sell as it is. It's a nice house , will make a nice home for someone. I'll knock on a few more doors and if I get no answers I'll be back.

Original poster

FTC2019 · 17/07/2025 14:38

Sorry never saw this.

I own 40%, because of the short lease the HA has said i can sale 100% with the freehold, this will be staircased to 100% during transaction, i then give them their share at the end, so the lease issues wont matters.

I've since found out that I'd only be liable for my share of the lease extension premium which doesn't sound as bad.. of course depending what the premium comes back as

OP posts:

legolegoeverywhereandnotadroptodrink · 17/07/2025 14:45

No. Sounds like a ballache

having been stuck in a chain with a S/O flat where the leasehold was being renewed was hideous

after 6 months it all fell through

MinnieMountain · 17/07/2025 16:22

Based on how long it takes, I’d go for the FH option. It would make it more appealing to buyers too.