What is Shared Ownership?
Shared Ownership is a housing scheme which allows you to buy a share in a home worth between 25% and 75% of the property’s market value, and pay a discounted rent on the remaining share owned by the landlord or housing association.
You can increase your share in 10% increments – this is called ‘staircasing’. Increasing your share reduced the amount of rent you pay on the remaining share.
When do I need a valuation?
When you buy an additional percentage, a formal valuation is required. The valuation, undertaken by a RICS registered valuer, will exclude the impact of any home improvements made at the share owner’s expense. This valuation lasts for 3 months – if you want to increase your shares after that period, you would have to renew the valuation unless you got in touch with the valuer within 2 weeks following the 3 months period. If you do this, they can extend the valuation to cover a further 3 months for a smaller fee.
You would also need to get a valuation if you are selling the property. This would include the added value of any improvements made.
If you’d like more information about shared ownership valuations, would like to book one in, or have any other questions, please get in touch with us here!