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Yes, you can sell half of your house but it involves a specific legal process known as a partial sale or fractional ownership. Fractional ownership means dividing the ownership of a property into smaller, more manageable shares, allowing multiple parties to own a portion of the property.

Indeed, 69% of all Shared Ownership purchases were by people under the age of 40 in the year 2021-22. However, this option is relatively popular with people of all ages due to the flexibility it provides.

This guide aims to explain how partial house sales work and whether it might be a good fit for you.


Can I Sell a Percentage of My House in the UK?


Yes. When you want to sell half your house, you need to find a buyer who is interested in purchasing the other half. Both parties will need to agree on the terms of the sale, including the sale price, the ownership percentage and any shared responsibilities, such as maintenance and expenses.


Can I Sell Exactly Half of My House?


Yes but in reality it is often slightly more or slightly less. While you can sell a percentage of your house close to half, achieving an exact 50/50 split can be challenging. In practice, the sale might be slightly more or less than half, depending on the agreed-upon terms between you and the buyer.


Do I Need a Lawyer for a Partial House Sale?


Yes it is generally recommended to work with a real estate lawyer experienced in fractional ownership to handle the legal complexities of the transaction. A lawyer can make sure that all necessary documents are drafted correctly and that both parties’ interests are protected.


Can I Still Live in the House if I Sell Half of It?


Yes, you can continue to live in the house even after selling a portion of it. However, this arrangement should be explicitly stated in the agreement you make with the buyer which should outline the rights and limitations of the buyer and the seller regarding the property’s use. You may also be interested in equity releases


Can I Still Live in the House if I Sell Half of It?


What Happens if I Want to Sell the Other Half of the House Later?


If you decide to sell the remaining portion of the house in the future, you can do so. However, selling the remaining half may require agreement and cooperation from the co-owner, as they might have the right of first refusal or the option to purchase the additional share.


What Happens If One Co-owner Wants to Sell Their Share?


If one co-owner wants to sell their share, they have the right to do so, subject to any terms and conditions specified in their agreement. Typically, the other co-owners may have the right of first refusal, giving them the option to match the terms of the potential buyer and purchase the selling co-owner’s share before it is offered to others.


Can a Co-owner Transfer Their Share to Someone Else?


Yes, a co-owner can transfer their share to someone else, subject to the terms outlined in the agreement. However, the new potential co-owner may need to be approved by the other co-owners to ensure they meet the requirements set.


Are There Any Tax Implications for a Partial House Sale?


Yes, there may be tax implications involved. Capital gains tax might be applicable on the portion you sell, and it could vary based on your jurisdiction and local tax laws. Consulting a tax professional is a good way to get to know the tax consequences before proceeding with the sale.


Can I Get a Mortgage on a Partially Owned House?


Yes. Getting a mortgage on a partially owned house can be more complicated than on a fully owned one. Lenders might be cautious about offering mortgages for fractional ownership, and the terms and interest rates could be less desirable. 


Can I Sell Different Percentages of My House to Multiple Buyers?


Yes, you can sell different percentages of your house to multiple buyers. Fractional or partial ownership allows you to divide the property into several shares and sell them to different individuals or entities. However, managing multiple co-owners may become more complex.


Can I Still Make Improvements to the Property After Selling Half of It?


Yes. Making improvements to the property after selling half of it is possible, but it requires agreement and coordination with the other co-owner. Any changes or renovations may impact the property’s overall value and should be discussed beforehand.


How Is Rental Income or Property Appreciation Divided Among Co-owners?


The division of rental income and property appreciation among co-owners is typically based on their ownership percentages. For example, if you own 60% of the property and the other co-owner owns 40%, you would receive 60% of the income or appreciation, and they would receive 40%.


What Happens if One Co-owner Defaults on Their Financial Obligations?


If one co-owner defaults on their financial obligations, such as not paying their share of property taxes or maintenance costs, the other co-owners may need to cover the shortfall to avoid legal and financial consequences.


Can a Co-owner Force a Sale of the Entire Property?


Can a Co-owner Force a Sale of the Entire Property?


Potentially, yes. In some cases, a co-owner may have the legal right to force a sale of the entire property if specific conditions are met. This right might be granted under certain circumstances, such as irreconcilable disputes between co-owners or a predefined exit strategy.


How Do I Terminate a Partial House Ownership Agreement?


Terminating a partial house ownership agreement might require the consent of all co-owners. The process to dissolve the arrangement should be outlined before you enter any sort of co-ownership.


Can I Convert Fractional Ownership Back Into Full Ownership?


Yes, under certain circumstances you might have the option to convert fractional ownership back into full ownership. However, it will depend on the terms of the predetermined agreement and the willingness of the co-owners to sell their shares back to you.


Concluding Thoughts


You can sell half your house and enter a partial ownership agreement. While there are benefits to partial house ownership such as financial flexibility and shared expenses, there are also potential challenges such as having limited control.