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Shared ownership selling prices
Simba-ali34
Posts: 228 Forumite
Hello,
Does anyone happen to know who controls the selling price on a shared ownership if some of the property is owned by a housing association?
Regards
Does anyone happen to know who controls the selling price on a shared ownership if some of the property is owned by a housing association?
Regards
0
Comments
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My understanding is that when someone is selling on their share of a shared ownership property they usually will market the share at the estate agent's guidance.
Once a sale has been agreed and the housing association get involved in the process the vendor will need to provide them with an open market valuation from a RICS-qualified surveyor to prove that what they're selling it for is in line with market value.
As shared ownership is classed as affordable housing, a share in the property can only be sold for market value or less.
If a sale price is agreed higher than the valuer's determination comes back, the seller will either have to reduce the sale price in line with market value or the housing association may go back to the valuer to ask if they can 'endorse' the sale price. This is entirely at the valuer's discretion - if they don't believe that the sale price is reasonable and within certain tolerances they may refuse to do so and the seller might have no choice but to reduce the sale price. If they do endorse the sale price then the sale would just continue on to completion.
Hope this helps!0 -
The HA will require you to use a RICS surveyor to determine the price and usually want a chance to sell through their own channels before they will allow you to place it on the open market. You can't accept an offer higher than the RICS valuation.0
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Thanks for the replies.
So the sale price is all determined by the HA and valuer?
For example...if the property is determined to be worth 340,000 would the shared owner (me) normally have the ability to drop the price to say 320,000 if the property wasn't selling?0 -
It's just they surveyor who determines the price the HA will follow their guidance. You can drop the price if you struggle to sell but I am not sure how that affects what you owe the HA0
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