If you own a Shared Ownership property, you’ll probably need a Shared Ownership Valuation at some point – but what is a Shared Ownership Valuation and when do you need one?
What is Shared Ownership?
Shared Ownership Valuations are only necessary if you own a Shared Ownership property.
Shared Ownership is a government scheme that allows you to purchase only a part of a property. You pay mortgage repayments on the part of the property you own and reduced rent on the part you don’t (which is owned by a housing association or a landlord).
When would I need a valuation?
The idea with Shared Ownership is that you can gradually buy more and more of the property until you own it outright. This process is known as staircasing.
Because you buy in percentage increments – for example, 10% – each time you purchase another part of the property you’ll need an up-to-date market valuation so you know how much it will cost you. This is where a valuation comes in.
You’ll also need a valuation
if you’re planning on selling the property
What happens in a valuation?
On the day of the valuation, the surveyor will inspect every room of the property, taking note of the condition, age, the number of the rooms and what fixtures and fittings will be included in the sale. They’ll also assess the outside space including topography, location, plot size and quality of vehicular access and parking. They may also note the potential for future development – for example, is there space to extend the kitchen or add a conservatory?
The valuation is also an opportunity for you to ask questions, for example, how to increase the value of the property
The valuation should take about an hour, but it varies depending on property size.
When should I get the valuation done?
When you get a valuation done it will be valid for 3 months. You should get quotes for valuation surveyors in good time before this and then book the valuation no more than three months before you plan to staircase (ideally two months before in case the transaction is delayed).
Make sure you don’t get it done too early – you can extend it a further three months if you get in touch with the surveyor within two weeks of the valuation expiring, but this will cost you extra.
It’s a good idea to get quotes as soon as soon as you know you’re going to staircase, as it’s an extra expense you’ll need to budget for alongside things like conveyancing
and mortgage fees
Check out our guide to Shared Ownership
for more information about the scheme, or read more about valuations