When is a Shared Ownership Valuation Required?
A condition of Shared Ownership is that a valuation report, conducted by a RICS Registered Valuer, is required before either purchasing a greater share in the property (known as ‘staircasing’), or if you intend to sell the property.
Following a framework set out by RICS, Shared Ownership valuations provide an accurate market value of the property. The report is compliant with the requirements of the respective Shared Ownership partner.
How Long is a Shared Ownership Valuation Valid for?
The Shared Ownership partner will usually regard the Valuation as valid for 3 months. If the property has not sold, or the staircase is not completed within that period, we can provide a desktop review valuation. The Shared Ownership partner will usually extend the validity of the report for a further 3-month period.
Valuation Reports for the Shared Ownership Scheme
The Housing Act 1980 included a provision to help people in housing need to acquire ownership of a portion of a property. The occupier pays their mortgage to cover their share along with rent to the Shared Ownership partner / Housing Association owning the other share.
As an independent, RICS Regulated practice, we hold the necessary accreditation and have RICS Registered Valuers experienced in valuing Shared Ownership properties. Our valuers will visit and assess the property in terms of condition, age, features and size. The assessment is used to provide an accurate valuation and research into similar properties, which have recently sold in the local area is used for comparison to ensure accuracy. Homeowners are sent the completed and signed report on headed paper.
Please note it is important to read the reselling policy and other terms set out by the Shared Ownership partner (often Housing Associations). In some cases, there is a requirement to offer the property back to the Shared Ownership partner to sell.
You might like to read our article: Do I need a Shared Ownership Valuation for Staircasing?