A Shared Equity valuation, otherwise known as a Shared Ownership valuation, needs to be carried out by an RICS Registered Valuer. This is to provide a market value for the sale or purchase of your percentage share in your property.
Shared Ownership schemes are likely to be managed and owned by a Housing Association. On this basis, when you consider re-selling the property, it should be regarded as that your share in your home will have to be offered to the Housing Association first. It may be that the Housing Association does not wish to acquire your percentage, but in most cases, the Housing Association will also have a right to offer your property for sale.
If it is your intention to move home, then before any form of marketing, it would be advisable to contact the Housing Association first. This is so they can advise you on your next steps.
Whether there is an option for the Housing Association to purchase your share or require a specific time period to consider selling the property, you will likely need to have a valuation. This needs to be carried out by an independent RICS surveyor.
This is known as a Shared Equity valuation or a Shared Ownership valuation. The valuation will determine 100% of the market value, and the worth of the different shares can be calculated.
Most Housing Associations have some particular rules regarding the valuation process. For example, some of the Shared Equity valuations we have carried out have required us to disregard any improvements made to the property since it was initially acquired.
For other Shared Equity valuations, request specific information from the surveyor regarding comparable evidence and the details within the valuation report. In most cases, Housing Associations will require the RICS surveyor to be registered, and the firm is regulated by the RICS directly. As a firm, we are regulated by RICS, and all our surveyors are RICS registered.
Ideally, you will need to provide the surveyor with specific information regarding your lease length remaining and any associated charges, such as ground rent, service charge, building maintenance, insurance, etc.
The comparable evidence the surveyor will compile should relate to properties of a similar style, layout and accommodation. As well as being of a similar age and having recorded sales evidence within the last 12 months. The more specific details of what the surveyor requires should be determined before the inspection.
The Shared Equity valuation will be provided to you in a PDF format and will be written to address the Housing Association. This again will need to be confirmed with the surveyor so that the report is not rejected at a later date. Once you have received the Shared Equity valuation, you will need to provide this to the Housing Association and any necessary documentation.
Once your valuation is agreed upon, the specific process relating to that Housing Associations policy on buyback or marketing director will need to be confirmed. It is likely that if the property remains unsold over the required marketing time, you will be allowed to market the property directly.