Selling Your Home

You can sell your home at any time but you should contact Plumlife first to discuss the various options available. Sometimes Plumlife will have the right to nominate potential buyers if your home is offered for sale. There may also be some restrictions on the sale price of your property. This is to ensure that shared ownership housing remains available for the people who need it, in particular where there are elderly persons schemes.

Before you put your home up for sale you should check the lease to see if it contains any special provisions, such as a S106 restriction imposed by the local authority on who you may sell to or any discounts which may be repayable. If you own a 50% share then you can either sell your 50% or alternatively you could purchase Plumlife's equity share at the same time as you complete the sale of the 100% equity to the new purchaser. Your solicitor will use the monies you receive from the purchaser to buy Plumlife's equity. You benefit from any increase in the value of the share that you own, but you will also be affected by any fall in its value.

Again you must write to Plumlife advising that you are planning to sell your home. You should allow plenty of time for Plumlife to carry out the necessary checks and administration. Please remember that you would be expected to pay any outstanding rent or service charge before the completion of the sale.

It should also be noted that there is a penalty clause in the lease, usually if the 100% equity of the property is sold at a price greater than that originally paid within three months of your 'staircasing' to 100% ownership. The Association could request payment of the difference in market value between the date when full staircasing takes place and the date when the 100% equity is sold, if this is within the three month period. This is meant to deter leaseholders from selling purely for profit and thereby ensures that the objective of providing properties for low income home owners is maintained. The process of selling the percentage of the property you own to another person is called an 'assignment' of the lease.

You will be responsible for determining the sale price. It should be noted that your lease will not allow you to assign your property for more than the market valuation of your share. You will be required to provide the Association with a formal valuation undertaken by a qualified RICS valuer.