Staircasing Valuation

What is a staircasing valuation?

A staircasing valuation is a survey which determines the current market valuation of your property. It's required as a first step when you're looking to staircase and buy more shares in your shared ownership property. By staircasing, you'll increase your equity percentage in your property, and your rent will be reduced by the proportion that you staircase.

The housing association requires you to get a RICS current market valuation of your property, as prices may have gone up since you bought your share. You have to pay for the valuation yourself and will have to on any subsequent occasion you staircase further.

How do you choose a RICS valuation surveyor?

You can usually shop around for quotes and instruct a surveyor of your choice. Some housing associations will ask you to choose your valuer from their own panel, but this is never compulsory. At the very least, you should get at least a few quotes from professionals who aren't on their panel.

The current market value of your property will affect how much you pay for new shares, so you'll want to ensure you get an accurate figure from an independent party.

When in the process should you book in your valuation?

Once you're sure that you want to staircase and have sufficient funds in place - or are reasonably sure that you can realise them - then booking your valuation should be the first thing you do. Bear in mind that your housing association will only let you proceed if you've cleared all rent arrears etc. and you'll have to pay the requisite application fee.

How to calculate staircasing?

At the time of staircasing, the share you wish to buy is a percentage of the value of your property. As properties go up and down in value, the housing association will ask for a staircasing property valuation so you can best calculate the price of the share.

Therefore, you need to know the current market value of your shared ownership property and the percentage you intend to buy. For example, if you initially bought a 50% share in a property worth £350,000, you would have paid £175,000 for it. If the property goes up in value to £400,000 and you staircase to 100%, you will then pay £200,000 for the other 50%.

Can you appeal against the valuation figure?

Yes, however you might find it very difficult to overturn. If you wish to, you should start by researching the prices of comparable properties in the vicinity of yours and in the first instance, take the matter up with your surveyor. The challenge you face is that to go further than this, you'll need to produce more compelling evidence and/or spend additional money.

You could, for example, get a valuation from a different RICS valuer, but there's no guarantee that the outcome will be any different.

Many commentators have stated that lenders and housing associations are unlikely to side against a surveyor regarding a RICS valuation. Appeal to the RICS itself is also possible, but once again, unless your surveyor can be proved to have acted unprofessionally or grossly incompetently, it's extremely unlikely that you'll succeed doing this.

How does 1% staircasing work?

1% staircasing is possible with newer leases and is known as gradual staircasing. It allows you to purchase a 1% share once a year, for the first 15% of your lease, without being charged an administration fee.

You do not have to pay for a shared ownership staircasing valuation as it's based on a house price index valuation - this is an estimate of the property value, whether increased or decreased, based on the House Price Index. Your housing association should provide one to you when you ask to staircase 1%, but either party can request (and pay) for an official staircasing property valuation.