Winning a dream home in an Omaze prize draw raises a practical question straight away: can you sell it, and how simple is that in reality?
This guide walks through what selling might involve once the keys are yours, from how ownership is transferred to what taxes could apply if you decide to move the property on. It also looks at common selling routes and the records worth keeping.
Whether you are thinking about entering or just curious about the process, you will find clear, straightforward information to help you weigh up your options. Entries are never guaranteed, and anyone taking part should do so sensibly.
Am I Allowed To Sell The Omaze House I Win?
If someone wins a house through an Omaze draw, they are generally allowed to sell it once the property has been legally transferred into their name. Omaze’s terms do not place restrictions on the winner keeping or selling the property.
After the ownership paperwork has been completed, the winner becomes the legal owner. At that point, they can move in, rent it out, or sell. The choice is entirely theirs.
There are no special sale-specific rules beyond normal UK property law. It is sensible, though, to factor in the practical responsibilities that come with ownership, such as insurance, council tax and the possible costs and taxes linked to a sale.
How Do Omaze Prize Rules Affect Selling?
Omaze sets terms for each draw, covering how the prize is awarded and transferred. Once the title is registered in the winner’s name, the property can usually be sold in the same way as any other home.
Conditions can vary from draw to draw, for example, which fixtures, furnishings or warranties are included. It is worth checking the specific prize terms so you know exactly what forms part of the sale and what does not.
Until legal transfer completes, the winner cannot sell or market the property. Once that point is reached, normal market choices apply.
Thinking about skipping the sale altogether? That depends on whether a cash option is available.
Cash Alternative And How It Changes Selling Options
Some draws offer a cash alternative in place of the property. If a winner chooses the money, there is no home to sell and no need to cover the costs that come with ownership or a sale.
The trade-off is different financial planning. Cash prizes are not subject to Income Tax when received, but any interest earned after that is taxable. By contrast, taking the house means any Capital Gains Tax would be based on growth in value between the transfer date and the day you sell.
If a cash alternative is on the table, compare it with the realistic after-cost proceeds of selling the house and the time it might take to complete a sale. Personal plans and the local market often tip the balance.
Who Holds Title And How Is Ownership Transferred?
Before a draw completes, title is usually held by Omaze or a related company. After a winner is confirmed, a standard UK conveyancing process transfers the property to the winner.
A solicitor or conveyancer will handle identity checks, review the title, deal with any conditions in the prize terms and file the application to the Land Registry. Registration times vary, but ownership takes effect from completion and the new owner’s details follow on the register.
Once the transfer has completed and the Land Registry application is in hand, the winner has full control and can decide what happens next, including a sale.
Tax Implications For UK Winners: Income Tax Vs Capital Gains
In the UK, the value of the prize itself is not subject to Income Tax. That means the house is received tax free at the point it is awarded.
If the winner sells later, Capital Gains Tax (CGT) may apply to any increase in value between the transfer date and the sale. For CGT, the property’s market value when awarded generally becomes the starting cost, and allowable selling expenses can reduce the gain.
Where the house has been the winner’s only or main residence for the entire period of ownership, Private Residence Relief can remove the gain. If it was a main home for only part of the time, relief is usually time-apportioned. Rules can be detailed, so checking HMRC guidance or taking advice is often helpful.
Will I Owe Stamp Duty Or Other Taxes When I Sell?
Stamp Duty Land Tax (SDLT) is charged on property purchases, not on sales. Selling a home does not trigger SDLT. If someone later buys another property, SDLT may then apply in the usual way.
When a property is awarded as a prize with no consideration paid and no mortgage taken on at transfer, SDLT is typically not due at that point either. If different arrangements apply, that position can change, so it is worth confirming the details for the specific prize.
CGT may be due on a profit when selling, depending on the gain and personal allowances. Beyond tax, sellers should also expect normal transaction costs, such as legal fees and estate agency charges.
Typical Costs When Selling A Prize Property
Selling a prize property involves the same core costs seen in most UK home sales. Planning for these at the outset helps avoid surprises and can shape the timing and method of sale.
Common items include:
- Estate agent fees, often 0.75% to 1.5% of the sale price plus VAT for a sole agency, with multi-agency fees higher.
- Legal fees for the seller’s conveyancer, typically £800 to £2,000 plus VAT, depending on complexity.
- An Energy Performance Certificate if the current one has expired, usually £60 to £120.
- Marketing extras such as professional photography or a floor plan, sometimes charged separately.
- Presentation costs such as minor repairs, compliance checks and cleaning. If the property is empty, ongoing council tax, insurance and utilities will still be due until completion.
If a mortgage has been added after winning to release equity, early repayment charges and discharge fees may also feature when selling.
How Long After Winning Can I Put The House On The Market?
Once the legal transfer is complete, the new owner can usually list the property for sale straight away. There is no standard holding period in typical prize terms.
It can still be sensible to wait until all documents are in order and keys have been handed over, so viewings and negotiations are straightforward. Some owners take time to arrange valuations or light refreshes to help with marketing, while others list immediately.
There is no requirement to sell at all. The decision and timing sit with the owner.
Do I Need A Mortgage Or Conveyancer To Complete A Sale?
Because the prize property is usually mortgage-free on transfer, the winner does not need a mortgage to sell it. A mortgage would only be relevant if they plan to buy another home or have secured borrowing against the prize property after winning.
A conveyancer or solicitor is, however, a practical necessity. They prepare the contract, respond to the buyer’s enquiries, handle funds on completion and make sure legal formalities are met. This protects both sides and keeps the sale compliant with UK property law.
With the legal side covered, the next choice is how to take the property to market.
Choosing A Selling Route: Estate Agent, Auction Or Private Sale
Using an estate agent is the most familiar route. Agents manage marketing, viewings and negotiations, and guide sellers through price setting, offers and the conveyancing stages. Fees are a percentage of the final sale price, and the support can be valuable if you want a broad pool of buyers and a managed process.
Auctions can suit sellers who prefer a defined timetable. When the hammer falls, the buyer is usually committed and pays a deposit, with completion following within a set period. The sale price is not guaranteed in advance and entry fees and commission apply, but the path to completion can be quicker.
Private sales avoid agency fees and allow direct negotiation with a buyer, which can work well if there is already an interested party. The seller then takes on marketing, viewings and price discussions themselves, and still instructs a conveyancer for the legal work.
How To Report The Sale To HMRC And Keep Records?
Some sales need to be reported to HMRC, particularly where CGT is due. For UK residential property, if CGT is payable you normally need to report and pay within 60 days of completion. If there is no CGT to pay, details are usually included in a Self Assessment return for the relevant tax year where required.
Good record-keeping makes this far easier. Useful items include:
- The prize transfer documents and date of acquisition.
- The sale contract, completion statement and sale price.
- Invoices for selling costs such as legal fees and agent commission.
- Evidence of capital improvements that may be allowable for CGT.
Keep records for at least six years in case HMRC asks for evidence later. If anything is unclear, a qualified tax adviser can help.
If you choose to take part in prize draws, do so sensibly. Set personal limits that suit your circumstances, and if you need support, organisations such as GamCare and GambleAware provide free, confidential help.
**The information provided in this blog is intended for educational purposes and should not be construed as betting advice or a guarantee of success. Always gamble responsibly.