Shared Ownership Valuation: A Complete Guide

Shared ownership is one of the most popular government-backed routes to homeownership in the UK, particularly for first-time buyers in areas like Nottingham, Derby, Leicester and Coventry where property prices can make full ownership difficult to achieve.

Shared ownership is not always straightforward, and one area that catches many people out is the requirement for a formal RICS valuation at key stages - including when you want to buy a larger share of your home, or when you decide to sell. This guide explains when you need a shared ownership valuation, what it involves, and what to expect.

What Is Shared Ownership?

Shared ownership is a government scheme that allows buyers to purchase a share of a property - typically between 10% and 75% - and pay rent on the remaining share, which is owned by a housing association. Over time, many buyers increase the share they own through a process known as staircasing, sometimes all the way to 100% ownership. Shared ownership properties are typically leasehold.

When Do You Need a Shared Ownership Valuation?

When you want to staircase

If you buy a larger share - whether an additional 10%, 25% or staircasing to 100% - the housing association requires a formal RICS valuation first. The price of additional shares is based on the current open market value of the whole property, not what you originally paid, so an independent valuation establishes a fair, professionally assessed figure.

When you want to sell

If you sell before owning 100%, the housing association typically has a right of first refusal, and a formal valuation is usually required to establish the current market value so your share price can be calculated fairly.

Remortgage or lease extension

A valuation may also be required when remortgaging your share or negotiating a lease extension. If your lease is running short, extending it now protects your ability to sell or mortgage in future.

What Is a RICS Shared Ownership Valuation?

A formal written report prepared by a RICS-qualified surveyor, establishing the open market value of the whole property (not just your share) to Red Book standards. This means it meets the requirements of housing associations and lenders. It is different from a homebuyer's survey - it does not assess condition in detail; its purpose is to establish a defensible market value.

How Is the Valuation Carried Out?

Your housing association will usually require a RICS-qualified surveyor - some have an approved panel, others let you choose your own, so check first. The surveyor inspects the property's size, layout, condition and features, considers comparable local sales, and produces a formal written report of the open market value, used to calculate the share price.

Most housing associations require the valuation to be no more than three months old at completion, so time the instruction carefully - if the transaction takes longer, you may need a fresh valuation.

How Does the Valuation Affect the Price of Additional Shares?

The price you pay for additional shares is a percentage of the property's current open market value. If the property has risen in value since you bought your initial share, the price of additional shares will be higher. For example, to buy a 25% share of a property valued at 220,000, you would pay 55,000, plus legal and stamp duty costs.

Can I Challenge a Shared Ownership Valuation?

If you believe the valuation is significantly higher than the true market value, you can seek a second opinion - most housing associations have a formal process with a time limit. Review the comparable sales evidence first; clear examples of similar properties selling for less can form the basis of a reasoned challenge. Your solicitor can advise.

How Much Does a Shared Ownership Valuation Cost?

Costs vary by property and location. As a formal RICS report, it requires a qualified surveyor to inspect and prepare written documentation to a professional standard. It is a required step in staircasing, not optional, so factor it into your budget alongside solicitor fees and stamp duty. At Nivek Surveyors we provide a clear, transparent fee before we begin.

Shared Ownership Valuations in the East Midlands

Nivek Surveyors carries out shared ownership valuations across Nottingham, Derby, Leicester, Coventry and Mansfield. Whether you are staircasing for the first time, planning to sell, or trying to understand your options, we can help you navigate the valuation process clearly and efficiently.

Common Questions

How long is a shared ownership valuation valid? Most housing associations require it to be no more than three months old at completion.

Does the valuation include a condition inspection? No - it focuses on market value. The surveyor inspects the property as part of the process, but the report won't include the detailed condition ratings of a homebuyer's survey. You can commission a separate survey if you're concerned about condition too.

My housing association has their own valuer - do I have to use them? Not necessarily; you can commission your own independent RICS valuation, which gives a clearer picture of market value before committing.