What is a Shared Ownership Valuation?
A Shared Ownership valuation determines the value of a home bought through the Shared Ownership scheme. It will provide an accurate, up-to-date valuation and give an overview of the condition of the home.
You will need this type of professional valuation when you are looking to buy a bigger share of the home. Shares are purchased at the current market rate. For this reason, an accurate and approved valuation is essential.
You will also need a Shared Ownership valuation if you decide you want to sell the property. Below we look at when you need a Shared Ownership valuer, how much it costs and how to find a valuer for your home.
What is Shared Ownership?
Shared Ownership comes under the “Help to Buy” government schemes. These are designed to help first-time buyers achieve home ownership and get on the property ladder. This can be for new-build homes and certain “resale” properties.
Shared Ownership means that a buyer pays a mortgage on the share of the home they own, plus subsidised rent. This is usually to a housing association that owns the remaining share. As a result, the deposit required for the home will be lower as they will only need to put down enough for their share.
The homeowner can then choose to increase their share of the property over time. This is done by buying more of the home from the landlord or housing association, known as “staircasing”.
Shared Ownership differs from other Help to Buy schemes and is also different to Shared Equity.
For more information read our article: Shared Ownership Vs Shared Equity
When Do I Need a Shared Ownership Valuation?
You will need a Shared Ownership Valuation when you are selling a Shared Ownership home. You will also require this type of valuation when you want to increase your share of the ownership of your home.
As with a Help to Buy property, you are required to get a valuer who is registered with the Royal Institution of Chartered Surveyors (RICS) to complete the valuation. The sale price of your home will be based on this valuation. If you are buying more of your home, a valuation will determine how much you pay based on the current market value.
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What Must a Shared Ownership Valuer Do?
For the valuation itself, a Shared Ownership valuer will inspect the home. This is to both determine its condition and value. They will also research the current property market and recently sold homes in the area. This allows them to reach an accurate and up-to-date valuation.
There are a few mandates that must be met for the valuation to be valid and accepted for a Shared Ownership home. These include:
- The valuer must be qualified and regulated by RICS. This is essential for a Shared Ownership Property.
- All valuers for a Shared Ownership home must carry out the inspection in line with RICS Valuation Standards (RICS Red Book)
- The valuer must be independent of estate agents
- The valuer must not be related or known to you
The report itself must:
- Be completed on RICS-headed paper
- Be signed by a member of RICS
- Be addressed to the provider you pay rent to
- Provide at least three comparable sales. These must be like for like in terms of property type, size, and age and within a 2-mile radius of the home being inspected.
- Include the inspection date
- Give an overview of the home’s condition following a physical inspection
How Much Does a Shared Ownership Valuation Cost?
We found that a RICS Valuation Report costs approximately £320. This is based on the average UK house price of £277,000. Keep in mind that this is an average cost which will vary depending on the home being valued.
The size, type and location of the home are all factors which influence the cost. Valuation across the board can be as low as £160 and as high as £600.
For more information see: How Much Does a RICS Valuation Cost?
Save on Your Valuation Report
Speak to a RICS Surveyor Today
Shared Ownership Valuation FAQs
Who pays for the valuation?
It is the homeowner who is responsible for paying for a Shared Ownership valuation.
How long does the valuation report last?
The valuation report will be valid for three months. If you don’t sell it in this time or use it for buying more shares, you will need to arrange another valuation.
Is a valuation survey the same as a property survey?
No, a valuation is not a detailed look at the home and should not be confused with a house survey. If you are buying a home, you will likely need a Level 1, Level 2 (Homebuyer Report) or Level 3 (Building Survey). If the home is a new build, a snagging survey will be required.
For more information see: House Surveys - What Type of Survey Do I Need?
Finding a Valuation Surveyor for Shared Ownership
One of the best ways to find a valuation surveyor for a Shared Ownership home is using a trusted comparison website.
We can match you with up to six local RICS registered surveyors who offer valuations among their services. These surveyors will have experience and excellent market knowledge.
Our Sales and Partner Support Teams work hard to ensure we only take on the best in the business. All surveyors and valuers must be RICS registered before becoming a partner.
Other ways you can find a valuer for your Shared Ownership property include:
- Recommendations from family and friends
- Checking the RICS website
- Reading reviews for local valuers
