Selling or assigning your shared ownership lease.

What is assignment?

Assignment is the term given when you sell your shared ownership lease. When you sell your shared ownership lease, the purchaser is agreeing to take on the terms and conditions within the lease. This transfer of responsibilities from one party to another is the ‘assignment’.

You can only sell your share of the lease. For example, if you own a 50% share, then you can only sell 50%. You may wish to consider options of staircasing fully, prior to, or at the same time as, the sale, depending on your financial circumstances and the terms of your lease. This may make finding a buyer easier, but independent advice should be taken on the suitability for your individual legal and financial circumstances.

How does the process work?

In order to sell your shared ownership lease, you need to formally notify Warwick District Council by completing the ‘intention to assign’ form, which is linked at the bottom of this page.

How do I find a buyer?

We will advise if we intend to nominate a buyer depending on the terms of your lease, and the policy in place at the time of receiving the intention to assign.

If we do not intend to nominate a buyer, It is your share that you are selling, and this can be done through your choice of estate agent.

As Landlord we will provide standard information about the property to your estate agent on request.

You may wish to explore both local and specialist shared ownership estate agents, and ask whether they pre-screen potential viewers for eligibility. If selling a share of a property it is your responsibility to ensure any estate agent and conveyancer instructed by yourself has appropriate knowledge and experience to complete the shared ownership sales process and that they can refer to a suitable independent financial advisor who can complete the required affordability assessment for shared ownership buyer approval.

Although WDC are not party to the sale, as Landlord we are required to approve the buyer before the sale exchanges. Your buyer must prove eligibility for shared ownership, and we must receive a signed and completed shared ownership affordability assessment from a suitable independent financial advisor. More information on national eligibility criteria is available on the Government Website at Shared ownership homes: buying, improving and selling: Who can apply - GOV.UK.

The valuation of your share of the property must be agreed between yourself as the seller and your buyer, this does not need to be a RICS valuation. The buyer should be aware that this valuation will not affect the value of the rent charged, which will remain as detailed in the lease plus annual reviews. Nor will it directly affect any subsequent staircasing costs, as any staircasing will follow a seperate process. This applies both to increases and decreases in valuation figures.

If you intend to staircase, and your buyer will not become a shared owner, then we are not required to approve the buyer.

I have found a buyer, what happens next?

Once you have found a potential buyer, their suitably accredited independent financial advisor will complete an eligibility and affordability assessment for shared ownership sales with the buyer, which will include checks on identity, assets, and income. If they are confirmed as eligible and meeting the affordability criteria, this assessment should be sent to hsgfin@warwickdc.gov.uk with the address of the property clearly stated, to enable us to approve the buyer.

They will be required to provide a copy of their mortgage offer to WDC once available. Once these items have been checked we will issue formal consents to the sale.

Is there anything else I will have to pay for?

You will be responsible for administration fees, the valuation fee, your solicitor’s fees plus any costs due to your mortgage lender and estate agent fees.

Do I need to do anything at completion?

Once you have completed the sale and any balance on the accounts have been cleared, you should ensure any regular payment arrangements are cancelled to prevent over-payment. The buyer’s solicitors will forward the Notice of Transfer to Warwick District Council to confirm the assignment has taken place. Our records, including the rent, service charge, and buildings insurance account, will be updated once the notice of transfer has been received.

Next step - Intention to assign

Please complete this form if you wish to start the assignment process, or have a specific query about the process.

Shared ownership resale, staircasing or remortgaging application