Shared Ownership Valuation

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.

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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 stated within your lease agreement, then you can sell your property on the open market. 

Individual housing associations differ, some quite markedly, in policy concerning matters such as whether you can accept offers above or below the valuation figure and what happens if you do. 

SAM Conveyancing has been made aware that some housing associations allow you to accept offers higher than the valuation figure but then expect to be paid a percentage of that excess according to the share you don't own. 

Say for example you agree to an offer which is £10,000 above the valuation figure and you own a 50% share, then you get £5,000 of the £10,000 excess and the housing association gets the other £5,000. for any price above the valuation amount. 

However at least one housing association expects to be paid 100% of the difference between the higher sum agreed and the valuation figure (you get nothing). 

In all cases SAM Conveyancing is aware of, if you are allowed to accept a lower offer than the valuation figure - and not all housing associations allow this - you'll still have to pay the housing association the full percentage that you don't own of the valuation figure: i.e. you'll have to take any loss.

You should carefully check your lease for information about your housing association's individual selling/reselling policy and consult it if you're unsure and still have questions.

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
Stamp Duty Land Tax for Staircasing

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