Shared ownership %

bigdbubble

Hi, my dad recently passed away so my sister and I will be sorting out his property soon. It is a shared ownership flat 75% against 25%. I just wondered if anybody knew about when we do sell it. I know we have to give the other company first refusal etc. Do they get back the 25% share they put in for example £15,000, or do they get 25% of the current selling price again for example if sold at £100,000 they would get £25,000? Many thanks D

eddddy

In simple terms, the Housing Association (or whoever owns the other 25%) would get 25% of it's current value. So using your example, they're likely to get £25,000.


But strictly speaking, it's probably 25% of the valuation - not 25% of the selling price.

So if a valuer values the flat at £100k - the Housing Association would expect £25k - even if you accepted an offer for less than £100k. 

There are likely to be other rules as well - for example, letting the Housing Association have first go at selling it. The Housing Association probably have a factsheet that explains the process and all the rules.