Selling your affordable home

Selling a Shared ownership (part rent-part buy) property?

Shared Ownership homes are usually provided by housing associations. If you want to sell, you should go directly to the housing association to whom you pay your. They will tell you the process for selling your home.

Your discounted sale or local needs home will be subject to a s106 Planning obligation. This is a legal agreement which specifies who would qualify to buy your home, and at what price.  In the case of local needs homes there may not be a price restriction. However, you will still need to sell to eligible households. You should check your Section 106 agreement so that you are aware of any specific requirements relating to your home. 

If you are selling a discounted sale or local needs home please follow the process set out below.

The Council needs to ensure that you sell your home in accordance with the terms of your s106 agreement.  To do this the Council is working with its agent, Help to Buy South West (HTBSW).  For further information about HTB SW see Who are Help To Buy South West?

Under their contract with Cornwall Council HTB SW will:

  • act as the first point of contact for owners looking to sell their affordable home
  • collate the necessary information from you to enable the Council to calculate the maximum sale price for your affordable home
  • agree an advertising scheme for your home. This includes an advertisement on the HTB SW website
  • market your home directly to potentially suitable applicants on the register of households seeking affordable housing. This is a free service to owners
  • qualify applicants interested in your home. In terms of local connection and their need for affordable housing

So that HTB SW have full details of your home you will need to complete a Sales NoticeThis also acts as a request to advertise with HTB SW (see ‘Advertising your affordable homes’ below)

You will need to provide HTB SW with evidence of the current open market value of your home and the resale percentage. This is so that the Council can confirm the maximum price at which you can sell your home.

You will need to submit a report of the open market value of your home. This must be:

  • undertaken by a Royal Institute of Chartered Surveyors (RICS) surveyor
  • in accordance with the latest RICS valuation standards and
  • dated no earlier than 3 months before the submission of your sales notice

RICS surveyors who provide open market valuations

Evidence of this is usually:

  • in your Section 106 agreement
  • in TP1 transfer document from the Land Registry or
  • available from the developer of your property

If this is a first resale on an older development you may need to provide evidence of:

  • the initial open market value and
  • the restricted price you paid

This is in order to work out the resale %.

Some homes may not have a price restriction. These are homes which are subject to older s106 agreements (or the predecessor s52 agreements). These must still be sold to eligible households.  These are known as local needs homes.  The occupancy criteria in the s106 agreement normally have a depressing effect on the value.  If you own a local needs home it is therefore important that you make the estate agent you are using aware of the occupancy terms. They can then take these into account in their valuation. You need to confirm the price at which you are looking to sell your home in the scheme type section of the Sales Notice.

You need to provide HTB SW with a copy of the s106 agreement relating to your home.  Usually this will have been provided to you when you initially purchased the property. If you don’t have a copy you will need to obtain it from your solicitors or upon request from the Council. There is a charge for this service which can be requested by emailing planning@cornwall.gov.uk  

Do you have an equity share (mortgage) arrangement with the original developer? If so, it is essential that you provide HTB SW with evidence of this and the share you hold. This is to ensure that purchasers and their lenders are clear about what they are purchasing. It will also ensure that the discounted price is accurately calculated by the Council.  Please provide HTB SW a copy of the equity share (mortgage) agreement you entered into. This will be a formal legal document. If you don’t have a copy you will need to ask the original developer or your solicitor who dealt with your purchase.  The Council will not be able to confirm a sale price until you provide HTB SW with evidence of your share value. 

If you do not reveal the existence of an equity loan you could be liable for abortive mortgage application costs incurred by a purchaser. If you are not sure if your property is subject to an equity loan you can download a copy of the register of title for your property. This can be downloaded from the land registry documents website for a small fee. 

Advertising is key to ensuring that as many local purchasers as possible are aware that your affordable home is available for sale. Normally, your s106 agreement will require you to agree an advertising scheme with the Council. Please set out in a marketing proposal how you intend to market your home. HTB SW will consider this and approve it on the Council’s behalf.

Further information on how you can market your home to reach as many local people as possible is contained in the following guide:

Please read this before submitting your marketing proposal.

Advertising on the HTB SW website is normally a requirement within all s106 agreements. This is a free service for owners. You will need to email HTB SW your completed sales notice/Request to Advertise form. At the same time please send them up to 10 good quality digital photographs of your home. These are important in attracting potential purchasers. These photographs must be submitted before HTB SW can start advertising your home.

Purchasers must be given information about the energy performance of your property right from the very outset. You should therefore ensure that an energy assessment is carried out as soon as your property is marketed. The Energy Performance Certificate should be submitted to HTB SW. This should be together with your request to sell or as soon as possible thereafter.  As a minimum you will need to be able to confirm to HTB SW that you have instructed an energy assessment to be carried out. Please consult your solicitor or estate agent for more information about obtaining an Energy Performance Certificate

There is no fee for HTB SW to process your request to sell your home.  They will also market your home:

  • on their website
  • via their social media and
  • to applicants on their register

This service is free of charge.

You will have to pay a surveyor for an open market valuation of your home. You will also need to find a solicitor and pay the usual legal fees associated with selling your home. You will have to pay for advertising fees through an agent or online advertising.

Further information

Please read the guide Selling your affordable home – a guidance note for owners. It provides further important information about:

  • Advertising your home
  • What happens if you have already identified a potential purchaser
  • Assessing the eligibility of potential purchasers and the approval process
  • Prioritising purchasers
  • Does your s106 agreement need updating?

You must submit all the following information in order for HTB SW to process your request to sell your home:

Please submit the checklist  showing that you have submitted the relevant documents

Email checklist and documents to: Cornwall@helptobuysw.org.uk

Advertising of the properties can only begin once:

  • HTB SW has received all the relevant documents from you
  • the advertising proposal and sales price have been agreed

HTB SW will then start assessing interested applicants. See Selling your affordable home – a guidance note for owners for further details.

If you have any questions please contact HTB SW

Email: Cornwall@helptobuysw.org.uk

Tel:  0300 100 0021

Address: Help to Buy South West, Templar House, Collett Way, Newton Abbot, TQ12 4PH

Website: www.helptobuysw.org.uk