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Selling our shared ownership home - do these calculations look correct?
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nomadfreedom
Posts: 18 Forumite

Hey, I purchased a shared ownership home with my sister a decade ago.
We're selling - I'm leaving the UK and will not purchase another property anytime soon.
How do these sums look?

I'm not particularly knowledgeable on mortgages - so could easily have missed something!
We purchased a 45% stake at £325k.
It's now for sale on the open market at a valuation of £425k - although it's been suggested that it could sell for £450k - £470k.
I spoke to our mortgage provider this morning and they confirmed that our outstanding balance is £101,200. So effectively, between mortgage repayments and our initial deposit we should have around £41,002.00 paid off.
I've then added potential upside calculations.
How do my numbers look? Have I missed anything?
Also, what's the situation in terms of capital gains tax?
I'm a higher rate taxpayer - but she isn't.
Thanks
We're selling - I'm leaving the UK and will not purchase another property anytime soon.
How do these sums look?

I'm not particularly knowledgeable on mortgages - so could easily have missed something!
We purchased a 45% stake at £325k.
It's now for sale on the open market at a valuation of £425k - although it's been suggested that it could sell for £450k - £470k.
I spoke to our mortgage provider this morning and they confirmed that our outstanding balance is £101,200. So effectively, between mortgage repayments and our initial deposit we should have around £41,002.00 paid off.
I've then added potential upside calculations.
How do my numbers look? Have I missed anything?
Also, what's the situation in terms of capital gains tax?
I'm a higher rate taxpayer - but she isn't.
Thanks
0
Comments
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Your calculation confused me at first. If you sell for 425k then you get 191.25k (that's 45%). Deducting your ERC you get 186.19k-187.202k depending on when your sole completes. You don't need to worry about CGT as this is your home that you're selling.After repaying your mortgage you are left with 84990-86002, which is then split with your sister.
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Mark_d said:Your calculation confused me at first. If you sell for 425k then you get 191.25k (that's 45%). Deducting your ERC you get 186.19k-187.202k depending on when your sole completes. You don't need to worry about CGT as this is your home that you're selling.After repaying your mortgage you are left with 84990-86002, which is then split with your sister.
It looks like we've arrived at a similiar number - but I've got there via a pointlessly complicated route, right?0 -
nomadfreedom said:Mark_d said:Your calculation confused me at first. If you sell for 425k then you get 191.25k (that's 45%). Deducting your ERC you get 186.19k-187.202k depending on when your sole completes. You don't need to worry about CGT as this is your home that you're selling.After repaying your mortgage you are left with 84990-86002, which is then split with your sister.
It looks like we've arrived at a similiar number - but I've got there via a pointlessly complicated route, right?
You've calculated "selling the house for it's original purchase price" and "the increase in value" as two different steps.0 -
I'm sure you've done this but check and scrutinise the clauses in your Lease around selling (for me it was 2 separate Schedules: Assignment of whole to Nominated Purchasers and Staircasing Provisions). They will state any administrative deductions and if you have to split the proceeds.
The calculation is right but you should use the RICS valuation, not the 'initial valuation' i.e. the full market value at the time you bought it - have you had a recent RICS valuation? Then, do you have written permission from the Housing Association to sell on the open market for a price of your choosing, after the nomination period?
When you sell SO you need to know what the value of the shares you are selling today are which is based on the current RICS valuation; you must sell for that amount at minimum or you will need to pay the difference to the Housing Association.
Some older HA leases will ask for a share of the profit - the older SO contracts used to be a bit more restrictive. Mine was straightforward, 1% of the value as admin costs for a staircasing, keep all the profits from an open-market sale ONLY if they did not find a buyer during the nomination period at the RICS valuation. Some Housing Associations will split the profits, for example 55% to them - this was phased out in the newer contracts (unfair IMO) so make sure you check.
Also big caveat if you are doing a simultaneous staircase and sale (i.e. selling your share plus the rest of the 55% that the HA owns at the full market value, which is what you are calculating), the RICS valuation is only valid for 3 months for a staircase, usually 1 year for a sale with no staircase i.e. selling just the shares - again, check with the HA.
I am selling my shared ownership (completing next week!) and used the exact same calculations but I sold my share and kept the profit, rather than do a simultaneous staircase and sale. Happy to share my calcs if needed!
Current debt-free wannabe stats:Credit cards: £9,705.31 | Loans: £4,419.39 | Student Loan (Plan 1): £11,301.00 | Total: £25,425.70Debt-free target: 21-Feb-2027
Debt-free diary0 -
nomadfreedom said:Hey, I purchased a shared ownership home with my sister a decade ago.
We're selling - I'm leaving the UK and will not purchase another property anytime soon.
How do these sums look?
I'm not particularly knowledgeable on mortgages - so could easily have missed something!
We purchased a 45% stake at £325k.
It's now for sale on the open market at a valuation of £425k - although it's been suggested that it could sell for £450k - £470k.
I spoke to our mortgage provider this morning and they confirmed that our outstanding balance is £101,200. So effectively, between mortgage repayments and our initial deposit we should have around £41,002.00 paid off.
I've then added potential upside calculations.
How do my numbers look? Have I missed anything?
Also, what's the situation in terms of capital gains tax?
I'm a higher rate taxpayer - but she isn't.
Thanks
As annetheman says please do check with the housing association you are allowed to sell your home on the open market.
You will have received a discount (perhaps c.20%) to the open market value when you purchased your home (and will have needed to have met the criteria of the housing association) so I'm not sure why you think you will be able to sell it on the open market and keep all the sales proceeds without first checking with the housing association.0 -
SarahB16 said:nomadfreedom said:Hey, I purchased a shared ownership home with my sister a decade ago.
We're selling - I'm leaving the UK and will not purchase another property anytime soon.
How do these sums look?
I'm not particularly knowledgeable on mortgages - so could easily have missed something!
We purchased a 45% stake at £325k.
It's now for sale on the open market at a valuation of £425k - although it's been suggested that it could sell for £450k - £470k.
I spoke to our mortgage provider this morning and they confirmed that our outstanding balance is £101,200. So effectively, between mortgage repayments and our initial deposit we should have around £41,002.00 paid off.
I've then added potential upside calculations.
How do my numbers look? Have I missed anything?
Also, what's the situation in terms of capital gains tax?
I'm a higher rate taxpayer - but she isn't.
Thanks
As annetheman says please do check with the housing association you are allowed to sell your home on the open market.
You will have received a discount (perhaps c.20%) to the open market value when you purchased your home (and will have needed to have met the criteria of the housing association) so I'm not sure why you think you will be able to sell it on the open market and keep all the sales proceeds without first checking with the housing association.
They did precisely nothing - and the allocated time (12 weeks?) has passed.
Frankly, their incompetence is quite convenient.
They specifically told us, 'You can sell it on the open market now'.0 -
annetheman said:I'm sure you've done this but check and scrutinise the clauses in your Lease around selling (for me it was 2 separate Schedules: Assignment of whole to Nominated Purchasers and Staircasing Provisions). They will state any administrative deductions and if you have to split the proceeds.
The calculation is right but you should use the RICS valuation, not the 'initial valuation' i.e. the full market value at the time you bought it - have you had a recent RICS valuation? Then, do you have written permission from the Housing Association to sell on the open market for a price of your choosing, after the nomination period?
When you sell SO you need to know what the value of the shares you are selling today are which is based on the current RICS valuation; you must sell for that amount at minimum or you will need to pay the difference to the Housing Association.
Some older HA leases will ask for a share of the profit - the older SO contracts used to be a bit more restrictive. Mine was straightforward, 1% of the value as admin costs for a staircasing, keep all the profits from an open-market sale ONLY if they did not find a buyer during the nomination period at the RICS valuation. Some Housing Associations will split the profits, for example 55% to them - this was phased out in the newer contracts (unfair IMO) so make sure you check.
Also big caveat if you are doing a simultaneous staircase and sale (i.e. selling your share plus the rest of the 55% that the HA owns at the full market value, which is what you are calculating), the RICS valuation is only valid for 3 months for a staircase, usually 1 year for a sale with no staircase i.e. selling just the shares - again, check with the HA.
I am selling my shared ownership (completing next week!) and used the exact same calculations but I sold my share and kept the profit, rather than do a simultaneous staircase and sale. Happy to share my calcs if needed!
We've had an RICS valuation and used this for the calculations - although it's since expired.
I should have mentioned: the housing association have already had their chance to sell it.
They did absolutely nothing in terms of sales and marketing and the nomination period has passed.
Frankly, it's convenient for us - as we're now allowed to sell it on the open market.
They've recommended that we staircase and sell - exactly as you suggest.
We're about to instruct a solicitor to help navigate all of this.
I am unsure as to whether we split 100% of the upside in proportion to our 45% stake.
Someone else on Reddit suggested that we might get to keep 100% of the upside above the valuation figure?
Congrats on your sale.
I'm leaving the UK so keen to cash out and move on.
Sure, calculations would be handy, thanks!0 -
nomadfreedom said:SarahB16 said:nomadfreedom said:Hey, I purchased a shared ownership home with my sister a decade ago.
We're selling - I'm leaving the UK and will not purchase another property anytime soon.
How do these sums look?
I'm not particularly knowledgeable on mortgages - so could easily have missed something!
We purchased a 45% stake at £325k.
It's now for sale on the open market at a valuation of £425k - although it's been suggested that it could sell for £450k - £470k.
I spoke to our mortgage provider this morning and they confirmed that our outstanding balance is £101,200. So effectively, between mortgage repayments and our initial deposit we should have around £41,002.00 paid off.
I've then added potential upside calculations.
How do my numbers look? Have I missed anything?
Also, what's the situation in terms of capital gains tax?
I'm a higher rate taxpayer - but she isn't.
Thanks
As annetheman says please do check with the housing association you are allowed to sell your home on the open market.
You will have received a discount (perhaps c.20%) to the open market value when you purchased your home (and will have needed to have met the criteria of the housing association) so I'm not sure why you think you will be able to sell it on the open market and keep all the sales proceeds without first checking with the housing association.
They did precisely nothing - and the allocated time (12 weeks?) has passed.
Frankly, their incompetence is quite convenient.
They specifically told us, 'You can sell it on the open market now'.
Indeed their incompetence is very convenient for you. Hopefully they also confirmed that they are not looking for any share of the sale proceeds either from you.0 -
nomadfreedom said:annetheman said:I'm sure you've done this but check and scrutinise the clauses in your Lease around selling (for me it was 2 separate Schedules: Assignment of whole to Nominated Purchasers and Staircasing Provisions). They will state any administrative deductions and if you have to split the proceeds.
The calculation is right but you should use the RICS valuation, not the 'initial valuation' i.e. the full market value at the time you bought it - have you had a recent RICS valuation? Then, do you have written permission from the Housing Association to sell on the open market for a price of your choosing, after the nomination period?
When you sell SO you need to know what the value of the shares you are selling today are which is based on the current RICS valuation; you must sell for that amount at minimum or you will need to pay the difference to the Housing Association.
Some older HA leases will ask for a share of the profit - the older SO contracts used to be a bit more restrictive. Mine was straightforward, 1% of the value as admin costs for a staircasing, keep all the profits from an open-market sale ONLY if they did not find a buyer during the nomination period at the RICS valuation. Some Housing Associations will split the profits, for example 55% to them - this was phased out in the newer contracts (unfair IMO) so make sure you check.
Also big caveat if you are doing a simultaneous staircase and sale (i.e. selling your share plus the rest of the 55% that the HA owns at the full market value, which is what you are calculating), the RICS valuation is only valid for 3 months for a staircase, usually 1 year for a sale with no staircase i.e. selling just the shares - again, check with the HA.
I am selling my shared ownership (completing next week!) and used the exact same calculations but I sold my share and kept the profit, rather than do a simultaneous staircase and sale. Happy to share my calcs if needed!
We've had an RICS valuation and used this for the calculations - although it's since expired.
I should have mentioned: the housing association have already had their chance to sell it.
They did absolutely nothing in terms of sales and marketing and the nomination period has passed.
Frankly, it's convenient for us - as we're now allowed to sell it on the open market.
They've recommended that we staircase and sell - exactly as you suggest.
We're about to instruct a solicitor to help navigate all of this.
I am unsure as to whether we split 100% of the upside in proportion to our 45% stake.
Someone else on Reddit suggested that we might get to keep 100% of the upside above the valuation figure?
Congrats on your sale.
I'm leaving the UK so keen to cash out and move on.
Sure, calculations would be handy, thanks!
So this was my calculation if I did a simultaneous staircase and sale:
I bought 28% of a £355,000 full market value flat for £99,400 in February 2021. My RICS valuation in February 2024 was £340,000 - valid for 3 months if staircasing, 1 year if selling without staircasing.
My 28% is now valued at £95,200 based on today's valid RICS valuation.After the nomination period lapses, the HA lets me put it up for a price of my choosing. I simultaneously staircase and sell for £360,000.
Profit [the difference between RICS valuation and the price I sell for] = £20,000. I can keep 100% of it, confirmed in writing by my HA.
My 28% shares value = £95,200
MINUS
£86,000 [amount owed to mortgage lender including ERC] = £9,200
TOTAL: £20,000 + £9,200 = £29,200 before fees, including the 1% admin fee for HA in the lease, etc.
--
As mentioned, I sold the 28% shares, far easier; I have sold for a full market value of £372,500 and had 6 asking price offers - I would never have achieved that price in the current market, as you can see by the new build value hit all the other 2 bed non-SO flats in my development have had to swallow. Benefit of SO is that 'hit' is largely shared or taken by the HA.
When you get the RICS valuation again, plug in the numbers and check that lease!Current debt-free wannabe stats:Credit cards: £9,705.31 | Loans: £4,419.39 | Student Loan (Plan 1): £11,301.00 | Total: £25,425.70Debt-free target: 21-Feb-2027
Debt-free diary0
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