Selling your home
As your lease may include conditions that apply to selling your home, it is really important that you contact the Home ownership team for advice before instructing an estate agent.
All leases are different but in general terms the following applies.
Private retirement schemes (PRS)
These schemes stipulate a minimum age, usually 55 or 60. Nomination rights may also be included, see below for further details.
Anyone expressing an interest in buying a retirement scheme property will be required to meet with the scheme manager, where applicable, who will assess their suitability for the scheme.
Private retirement schemes may not be suitable for elderly people who require significant assistance in their day-to-day living.
Leasehold schemes for the elderly (LSE)
An LSE is very similar to PRS, but residents who purchase through an LSE scheme own a proportion of the value of the property, usually 70%. There is no rent due on the residual amount.
LSE housing is aimed at older people, usually over 55 or 60, who have limited funds or income to purchase a property at full market value.
LSE leases may also include nomination rights, see below for further details.
Right to buy (RTB)
Residents who previously rented their home and then exercised their right to buy, may be required to pay back some of the discount received to buy the property if they sell within a certain period.
Shared ownership (SO)
As shared ownership is government funded affordable housing, there will almost certainly be nomination rights included in the lease.
Buyers will also be required to show that they meet the eligibility criteria for shared ownership, for example affordability.
Sellers may not sell their property for anything over and above the valuation.
When a home with nomination rights is being sold, a Local Authority or Social Housing Landlord will have the right to nominate a buyer from their waiting list to purchase the property. This is a cheaper option for the seller as it does not require any involvement from an estate agent. However, at the end of the nomination period, if a suitable buyer is not found then the seller can market the property.
Some leases will determine that an independent valuation is obtained at the outset. Sellers cannot sell their property for more than the valuation.
Where a valuation is not required it may still be advisable to obtain one at an early stage to avoid disappointment later. For example, when the mortgage valuation is received this will be the valuation used to ensure the price offered is not above the value.
A buyer’s solicitor will seek information from Sanctuary on various issues relating to the lease, such as the rent, service charge, buildings insurance and sinking funds. Not all of these will be applicable in every case.
A requirement of the sale of any property is that any arrears will need to be cleared at the point of sale.
For further information
Before instructing an estate agent, please contact our Home ownership Team:
- Call FREE from your landline on: 0800 916 1444
- Call from your mobile (calls charged at a national rate) on: 0300 123 3516
- Or email: email@example.com
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You can sell your home at any time but you must advise us in writing.