Shared Ownership Valuation

03/01/2018
You have to get a shared ownership valuation when you are either selling your property or staircasing, which is buying a larger share in it.

Your housing association stipulates that you must do this to determine how much the next share will cost you (staircasing) or what price your property – and therefore your stake in the property – will be sold for. You have to pay for the valuation.

You instruct an experienced RICS valuer to carry out the work. The valuation is not a home buyers survey and does not consider property defects. The report not only states the market valuation of your house but also includes 3 comparables of similar properties in the local which have sold within the last 3 months.

* Compliant for All Housing Association – Local RICS Survyeors– Same Week Availability
Want help now? Call us on 0333 344 3234 (local call charges apply)

Is a shared ownership valuation different to other valuations?

Yes because the housing association require the valuation report to be:

  • Provided by a Qualified RICS valuer
  • Reported on RICS headed paper
  • Independent to you
  • Provided with comparables (where available)

Does the valuation report on property defects?

The Shared Ownership Valuation is not a condition or defect report. The scope of work is to provide a current market valuation which includes a site visit to assess the condition of the property for valuing purposes only, will provide comparables of recently sold properties similar in nature and type (if available) and delivered on RICS headed paper. This is not a structural assessment such as a Building Survey or HomeBuyer Report.

RICS Surveyors, local knowledge and at competitive prices.

 

How long does the valuation last for?

The valuation lasts for three months, after which, if you still want to staircase or sell, you must either:

  • Renew the valuation; or
  • Get a Letter of Comfort, otherwise known as a retype, which verifies that the original value as stated is still correct and the market has not changed significantly in the period.

I am staircasing, does my valuation affect stamp duty?

With shared ownership, you either opt to pay the entire stamp duty for the whole value of the property at the beginning – known as a market value election – or you pay stamp duty, if applicable, on the first share which you bought and don’t have to pay any more until you have bought more than an 80% share of the property.

It is therefore only of relevance if you are staircasing to more than 80%, when the value returned determines how much you will pay. To find out more, please read Stamp Duty Land Tax for Staircasing.

What if I disagree with the valuation figure?

You or your housing provider can challenge the surveyor on your behalf but you need to provide 3 comparables of similar properties that have sold within the last 3 months in the locale as evidence.

What happens when you sell on the open market?

When selling a shared ownership property you have to offer the property back to the housing association to sell on your share at the property valuation price to their current affordable housing list of buyers. If no one can afford your property, or it doesn't sell during a set time, then you can sell your property on the open market for any price above the valuation amount. The Housing Association only benefit from their percentage of the valuation and any amount above this is yours.

Do improvements I’ve made count towards the valuation?

Any improvements you have made do count towards the valuation figure, but they are not considered separately. The valuation figure essentially concerns the whole property along with any improvements. If you do not own the whole property 100%, effectively the uplift to the value is added according to the percentage you actually own.

The RICS valuer should take any improvements you have made into consideration when providing their shared ownership valuation report.

* Compliant for All Housing Association – Local RICS Survyeors– Same Week Availability
Want help now? Call us on 0333 344 3234 (local call charges apply)


Related News Articles

 
Staircasing Process
29/08/2017
Stamp Duty Land Tax for Staircasing
09/11/2017
new-conveyancing-process.png

Log in to your FREE online Conveyancing Process

Complete your to-do lists, save your progress, watch our videos and follow our tips to lead you through from instructing your solicitor to when you finally move in. Our simple, easy to use process has already helped over 2,857 people move home in 2017 and it is FREE to use.