Resale FAQs

Why do I have to sell my property through MHO?

Your lease contains a clause stating that properties must be offered to MHO to find a customer from our waiting list. This is called the nomination period.

Where does it state the length of my nomination period?

This clause can be found within the sub sections of your lease. We apply an 8 week nomination period to most properties in the South East and 4 weeks for properties in the Midlands. Should your lease stipulate a different nomination period please let us know.

Why can’t I instruct an estate agent to carry out the valuation?

To ensure your property is sold at a fair and competitive price, an independent valuation must be carried out. This clause also stipulates that in most leases a qualified valuer registered with the Royal Institution of Chartered Surveyors (RICS) or a Fellow of RICS (FRICS) must be appointed by MHO.

Why does MHO have to instruct the valuer?

This is because there are public funds invested in your home and we own the share you want to buy. The Homes and Communities Agency (our funders and regulators) check that we do this. All the valuers we use are fully qualified members of the RICS or FRICS and are completely independent from us.

What happens if I don’t agree with the valuation?

Valuing properties is not an exact science – valuers base their valuations on the actual sale price of similar properties and their experience of the area. If you do not agree with the valuation, you will need to put your concerns in writing, along with evidence of at least three similar (local) properties that are for sale or have sold within the last three months. We will send this information to the valuer and ask them to explain how they arrived at their valuation. We expect to receive a reply within five working days.

If you are still not happy, you can ask for another valuation. You will be responsible for the cost of this valuation. In extreme cases (if the value cannot be agreed), we will ask the RICS or FRICS to help reach an agreement.

How long will it take to sell my property?

We are normally successful in finding a buyer within the first 4 weeks of a sale. Once a buyer is  confirmed we aim to exchange contracts within 6 ‐8 weeks.

How can I sell 100% on the open market?

If MHO is unsuccessful in finding a buyer for your property within the nomination period, you can either sell your share or the full 100% of the property on the open market. The process of selling the  full 100% on the open market is called simultaneous staircasing and selling. Effectively, all that  happens is that on completion of the sale you will receive your share at the sale price and MHO will receive its share at the valuation price.

Why do I have to pay for MHO’s solicitors as well as my own?

To facilitate the legal process of approving the buyers mortgage, assigning the lease to the new buyer and dealing with general legal matters of the sale, MHO will appoint a solicitor to act on its behalf. As it is in the leaseholders interest to sell, the cost is added at the end of the sale ‐ this is usually covered by any increase in equity that has accumulated over the period of ownership.

Why does MHO charge me on the full valuation and not just my share?

Due to staffing and marketing costs in providing a high level of service to all of our customers, the level of fee has been set at 1% of the valuation. Across an average number of sales per year this creates a required level of income to sustain the service.

When should I cancel my rent & service charge payments to MHO?

You will be advised when to cancel your direct debit to MHO. You will be liable for ensuring the account is up to date by the end of the month that you complete. Once you receive your exchange date you should arrange to cancel the direct debit providing your account is up to date.