Shared Ownership Valuation | INSTANT Quote | RICS Surveyor


Shared Ownership Valuation | Shared Equity Valuation


In the complex, ever-evolving world of the London property market the concept of shared ownership has emerged as a favourable option for many first-time buyers seeking to step onto the property ladder. The shared ownership valuation, a critical process in this scheme, involves a detailed examination of a property's worth, ensuring a fair and transparent transaction. This article will provide an authoritative insight into shared ownership valuation for London properties, aiming to demystify the process and shed light on its key elements.

At the heart of a shared ownership valuation lies the role of the Chartered Surveyor. As a RICS (Royal Institution of Chartered Surveyors) qualified professional, a Chartered Surveyor undertakes the crucial task of determining the market value of a property. This valuation is not merely a casual estimate, but an in-depth survey meticulously performed to ensure the highest degree of accuracy. An RICS surveyor assesses various factors, including the property's condition, location, and comparison with similar properties in the vicinity, thereby arriving at an unbiased valuation report.

Shared ownership valuation is essential for several reasons:

  1. It is required by housing associations and mortgage lenders to determine the value of the property you are buying or selling.
  2. For individuals who have opted into a shared ownership scheme, this valuation is a prerequisite for staircasing, the process of increasing one's share in the property.
  3. If you decide to sell the property, a valuation is necessary to establish the open market price.

In this process, the role of a solicitor is also noteworthy. They liaise with the surveyor, the housing association, and the mortgage lender to ensure all legal aspects of the transaction are taken into account, further solidifying the valuation's credibility.

It's important to note that shared ownership valuation is not a static one-time procedure. As the property market ebbs and flows, so too does the value of your share. Keeping abreast of these changes can make a world of difference, especially in a market as competitive as London's.

Shared ownership valuation is a detailed, dynamic process requiring the expertise of professionals such as an RICS surveyor or valuer. It's a cornerstone of shared ownership schemes and plays an indispensable role in London's vibrant property market. This article will further delve into the intricate dynamics of shared ownership valuations, offering you a comprehensive understanding of the process.

Shared Ownership Valuation | INSTANT Quote | RICS Surveyor, Harding Chartered Surveyors

What is a Shared Ownership Valuation?


Because London property prices are prone to fluctuation, you need a valuation report that details your property’s current value to increase your share of the ownership and will need a shared ownership valuation. Our valuations allow you to determine how much additional equity share you can afford.

The RICS valuation excludes any improvements you’ve made to the home unless you intend to sell it, and it doesn’t provide an in-depth report on the property’s condition or required repairs. If you want a cost estimate for repairs, you’ll need a building survey or an RICS HomeBuyer Report.

If you want to increase your equity share in your London property or pay off your help-to-buy loan, you’ll need a valuation from an RICS registered valuer. Fortunately, you can use your valuation to negotiate fair terms for your share increase and to plan your finances accordingly.

At Harding Chartered Surveyors, we can give you an honest and accurate equity valuation that remains valid for three months, and we work entirely independently of lenders. Call us today to learn more about property valuations for staircasing.

Shared Ownership Valuation Quote


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Benefits of a Shared Ownership Valuation?


From giving you an insight into your home’s accurate value to helping you increment your equity share responsibly, here are the benefits of equity valuations for London properties:

  • Let Independent Surveyors Value Your Home
    Equity valuations let you know how much additional equity you can purchase from your housing developer or the Housing Association.
  • Negotiate Fair Terms of Ownership
    When you increase your ownership share, your rent payments should reduce correspondingly. Make sure the terms are fair by getting an equity valuation.
  • Protect the Future of Your Finances
    By understanding your home’s value and the costs involved with increasing ownership, you can budget your finances accordingly.

What is Staircasing?


Staircasing is the process of purchasing all or some of the remaining equity in your shared ownership home. You can increment your equity share by a minimum of 10% up to three times, decreasing your ongoing monthly rental payments.

Staircasing represents an opportunity for shared owners to increase their stake in their shared ownership home. It's a process where you purchase additional shares in your property, potentially up to the full 100%, depending on the rules stipulated by the housing association. The process begins with getting a shared ownership valuation, performed by an RICS registered valuer. This valuation of the property, which forms part of the shared ownership valuation report, determines the value of the additional share you wish to buy. It is based on the current market value of the property, with the RICS valuer considering factors such as the condition of the property and the prices of similar properties that have sold in the local area to provide an accurate valuation. This valuation is normally valid for 3 months.

The cost of staircasing is determined by the value of your home at the time of the valuation, not at the time of your original purchase. If the value of your property has increased since your initial purchase, buying an additional share will be more expensive than your first share. It's also worth noting that when you staircase to a 100% share in your property, you become the outright owner and no longer pay rent on the remaining share to the housing association. However, you might be required to pay stamp duty on the purchase of additional shares, depending on the total value of your home and the value of the share you're buying.

Potential Shared Ownership Valuation Problems


Shared ownership valuations, while offering a multitude of benefits, are not without potential pitfalls. One such issue that can arise is the discrepancy in valuation figures. Given that the valuation of the property is a complex process requiring professional judgement, valuations from different RICS surveyors might vary. This variance can be due to differing interpretations of the local market, divergent views on the impact of the property's condition, or contrasting comparisons with similar properties. Such inconsistencies can lead to confusion and potential disputes, particularly when negotiating the staircasing process or deciding on an open market selling price.

Another potential issue relates to the unique nature of shared ownership itself. Since this model involves a partnership between the resident and the housing association, conflicts can arise regarding property valuation. For example, the housing association might have an interest in a higher valuation to maximise its return if you are selling or staircasing, whereas you might prefer a lower valuation to reduce your financial outlay. Moreover, shared ownership properties might not appreciate at the same rate as those on the open market due to restrictions on resale and buyer eligibility, which could be a concern for shared owners looking to capitalise on property market growth.

Is an RICS Shared Ownership valuation a worthwhile investment?


If you plan to purchase a more significant percentage of your shared ownership home, you’ll need RICS registered valuers to provide an accurate valuation, which costs as little as a few hundred pounds and remains valid for three months. Fortunately, because valuations allow you to negotiate the terms of your share increase with your eyes open, they’re well worth the price.

How Harding Chartered Surveyors can help obtain a Valuation for you


Contact our qualified RICS registered valuers on 020 3598 6730 to learn more about equity valuations for shared ownership homes in London, or obtain a free quote for an independent valuation of your property. We are valuation specialists in the London property market.

Shared Ownership Valuation | INSTANT Quote | RICS Surveyor, Harding Chartered Surveyors

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Is a RICS Shared Ownership valuation a worthwhile investment?


If you plan to purchase a larger percentage of your shared ownership home, you’ll need RICS registered valuers to provide an accurate valuation, which costs as little as a few hundred pounds and remains valid for three months. Fortunately, because valuations allow you to negotiate the terms of your share increase with your eyes open, they’re well worth the price.
Contact our qualified RICS registered valuers on 020 3598 6730 to learn more about equity valuations for shared ownership homes in London, or obtain a free quote for the building survey that your property may urgently require.