Shared ownership schemes allow a buyer to purchase a stake in a property (usually between 25% and 75%) and pay rent on the remaining portion to the developer or housing association that owns the freehold of the property. For many homebuyers, this is a convenient way to step onto the property ladder if limited funds prevent them from buying the entire property.
Schemes provided by different housing associations or property developers will have slightly different costs and restrictions. However, in most cases it is possible for buyers to increase their share of the property. The process for increasing this proportion is called ‘staircasing’, usually in increments of 10% until the property has been fully purchased or the buyer has reached the maximum ownership percentage permitted under the particular scheme.
In order to begin the staircasing process, those with shared ownership will need to contact their landlord (or equivalent) to request an application to staircase. They will also need to speak to their mortgage provider to secure the necessary funds. At H&S Surveyors, we offer shared ownership valuations to assist with your staircasing application.
Why Do I Need a Shared Ownership Valuation?
To purchase additional shares of the property, the value of those shares will need to be calculated – their value may have gone up or down since the initial purchase. Most mortgage providers will insist that this value is determined by a surveyor with an accreditation from the Royal Institution of Chartered Surveyors (RICS), to ensure that the valuation is credible, accurate and robust.
A shared ownership valuation will also need to be obtained if the property is to be sold before 100% ownership has been reached. This is to make sure that the scheme provider is reimbursed the appropriate sum.
Shared Ownership Valuations with H&S Surveyors
If you have shared ownership of a property in Devon, and would like to know its full value for the purposes of staircasing or selling, contact us today. At H&S Surveyors, we have helped a large number of clients with valuations of all kinds, including mortgage valuations, valuations for charitable organisations, valuations for probate, matrimonial purposes or other legal requirements, as well as shared ownership valuations.