Selling a Leasehold Retirement or Shared Ownership property

The legal process involved in selling your home depends on the terms in your lease.  This guide summarises the key points to help you in this process.

• Properties bought with an assignable lease
• Properties bought with a non-assignable lease
• Sales process
• Deductions from the sales proceeds
• Estate Agents "For Sale" Boards

Most schemes have an assignable lease.  This means that you can sell your property on the open market, subject to certain conditions set out below.

Most "Johnnie" Johnson Housing Trust Retirement Schemes were funded with the benefit of some government grant.  Therefore, we are obliged to take reasonable steps to ensure that properties are sold to someone who is in housing need and complies with our sales policy.  The lease also specifies the minimum age of a purchaser, for retirement properties - this is normally 55 years. For our general shared ownership properties the minimum age is 18 years.  In the case of a couple, at least one person must comply with this criterion.

Under the terms of the lease, we normally have the right to nominate a purchaser, within 28 days of your notice to assign.  If we nominate a purchaser but they do not exchange contracts within 12 weeks, you are free to find a purchaser who we must approve. We usually have healthy waiting lists for most of our schemes.
The leases do vary; therefore we advise that you check your lease before you sell your property.

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Leases on schemes completed before 1989 are non-assignable and must be surrendered to us.  We are responsible for finding a buyer and granting new lease within 6 months.  You will receive the sale proceeds, in accordance with the lease once the new lease is granted.

Under the terms of the lease, you cannot sell the property directly to someone else.  However, if we cannot find a buyer within 6 months, you can choose who you wish to sell to.   We will grant this person a new lease provided they are eligible under the lease i.e. age criterion and comply with our sales policy.

Under the terms of lease, we normally have the right to find a purchaser and grant a new lease within 6 months of your notice of surrender.

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The main stages in the sales process are as follows:

• If you wish to sell your home you need to confirm this in writing.  Upon receipt of your notice of intention to assign or surrender, we will provide you with relevant details and costs relating to the sale of your home.  We will ask you to confirm your agreement with these before the sale proceeds.
• You can arrange your own valuations or we can arrange for a valuation of your property. If you disagree with the valuation that we have provided, you may ask for an alternative independent valuation, which is binding, on both parties.  You are responsible for the costs of all valuations obtained.  If you arrange your own valuations you will be required to provide two separate valuations.
• If we are unable to find a purchaser from our waiting list, we will discuss with you the preferred method for marketing your home.  This will normally involve the appointment of an estate agent.
• When a purchaser is found we will verify that they are ready, and able to proceed and that they comply with the lease and our sales policy.  We will confirm the sale price with you before an offer is accepted.
• You will need to appoint a solicitor or conveyancer to act on your behalf in the sale of your home.
  Throughout the assignment/surrender and re-sale we will use our best endeavours to provide all necessary information to your solicitors, the purchaser and their representatives within strict timescale we have set.
• If we nominate a purchaser for your home we will charge an administrative fee, upon completion, which will not exceed 2.5% of the sale price. We are currently charging 1% of the sale price. 
• If we are unable to nominate a purchaser, and you decide to make your own arrangements for marketing your home, we will charge an administrative fee for our services in approving a purchaser and providing all necessary information for the purchaser and their representatives.  We will confirm our fees before you elect to find your own purchaser.
• We will provide a completion statement advising your solicitors of the sale price and any deductions made in connection with our administrative fees and any other amounts owing under the terms of the lease.  Subject to any deductions, you will receive the relevant percentage of the market value i.e. 25%, 50% or 75% depending on the share you own.

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The only deductions from your sale proceeds will be those specified in the lease. These are:

• Our expenses for arranging the sale of your property, or our administrative fee for approving a buyer you have chosen.  The current charge is 1% + vat.  If the property is marketed through an estate agent our fee will be £75 + vat for approving the purchaser
• Our legal fees in connection with the sale
• Property valuation fees
• Any rent and service charge you owe up to the date you sell your home
• Any money you owe to a Long Term Maintenance Provision
• Any deduction for outstanding repairs to the inside of your home

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Estate Agents ‘For Sale’ Boards

If you are using an estate agent to sell your home you may wish to erect a ‘For Sale’ board.  If you wish to erect a 'For Sale' board in any communal area you should agree the location with the Housing Manager in order to ensure this is appropriate.

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