What is a Shared Ownership Valuation?

What is a Shared Ownership Valuation?

Shared ownership is a form of home ownership which has become more popular in recent years as house price appreciation has outstripped inflation. It is designed to be more affordable and attainable. Instead of owning the entire property (either outright or with a mortgage), you buy a specific percentage of it. You may then be required to rent the remaining percentage from your housing association often at a reduced rate.

Different shared ownership schemes can have different terms. You might never own the remaining shares, or you may have the option to buy all or some of the remaining shares at a later date via “stair casing”. It depends on your shared ownership agreement.

Once you own your share in the property, an RICS Valuation is often required if you wish to purchase more or sell your shares in the property. It is often left to you as the homeowner to source this RICS valuation not the housing association or similar. 

It is typical for this valuation to be based 100% market value with no restrictions on resale. RICS Valuers normally need to discount any additional value that may be attributable for the property due to it’s shared ownership nature. 

 

When to get a shared ownership valuation

It is normal for it to be a condition of the lease or shared ownership agreement that an RICS Valuation Report is required whenever you plan to buy or sell shares in your property.

In a fast-moving property market, as any change – up or down – in house prices can significantly affect the value of your and the housing associations shares. It is typical that the valuation must be undertaken within 3 months of your transaction to buy or sell your shares. 

 

Help to Buy equity valuations

Under the Help to Buy equity loan scheme offered by the UK government, many new homes in the UK have been purchased with the aid of a Help to Buy equity loan. 

When you want to repay the outstanding equity loan either with cash, re-mortgaging or selling, you’ll typically need a Help to Buy equity valuation by a RICS Registered Valuer.

This estimates the up-to-date market value of your property, from which you can calculate the percentage you still owe.

 

Book a shared ownership valuation

For more information or to book a shared ownership valuation in Manchester, contact Torus Chartered Surveyors today. We are RICS Registered and our Help to Buy equity valuations are Target HCA compliant.

You can call us on 0161 929 7892 or email info@house-survey.co.uk, or visit our chartered surveyors in Altrincham at Suite 116, 30 The Downs, WA14 2PX.All enquiries are welcome, even if you’re at a very early stage of considering a shared ownership property, and you’ll find all our details on our Contact page. 

What Does a Home Valuation Involve?

What Does a Home Valuation Involve?

A home valuation provides an estimate of the market value of a property, based on its current condition and any apparent causes for concern.

It is normally defined as: 

The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion”

Because Torus Chartered Surveyors are RICS Registered Valuers, you know the valuation you receive will meet the standards set out by RICS, and this means you can feel much more confident about the findings.

What happens in a RICS home valuation?

A RICS home valuation takes about half an hour for an average-sized property. Larger houses may take longer.

The RICS Registered Valuer will take measurements of the building and the plot on which it stands, make an assessment of the overall condition of the property and take some readings to detect any likely damp problems.

RICS standards no longer require a loft inspection but this can be arranged in advance on request.

Torus Chartered Surveyors carry out RICS home valuations in Manchester and North Cheshire, and you’ll usually get your valuation back within 48 hours.

What is a home valuation used for?

A property valuation is not just used for mortgage applications. There’s a long list of other reasons why a home valuation may be useful or mandatory:

  • When buying a house for cash
  • When mortgaging or remortgaging
  • Shared ownership and shared equity
  • Probate and inheritance tax valuations
  • Valuations for divorce settlements
  • Valuations for tax purposes
  • Retrospective valuations
  • Help to Buy valuations
  • Expert Witness Reports. 

We provide a fixed-fee Help to Buy valuation survey so you can get an updated market value estimate for your property, if you want to pay back some or all of the equity loan.

Our Help to Buy valuations are guaranteed compliant with Target HCA, so you can have the maximum confidence that our service will meet your needs and provide excellent value.

How to book a home valuation

To book a RICS home valuation or a RICS Help to Buy valuation, or to ask us any questions about our service, please contact our chartered surveyors in Manchester today on 0161 929 7892 or email info@house-survey.co.uk.

All enquiries are welcome and if you’re not sure what type of property survey you need, we can help you to decide and make sure you get the kind of valuation and property inspection you need, whatever process you are entering into.

What Does a RICS Help to Buy Valuation Involve?

What Does a RICS Help to Buy Valuation Involve?

Torus Chartered Surveyors are proud to provide a RICS Help to Buy Valuation for our customers. We offer a guarantee they will be accepted by Target, so you can have confidence that you will get all the information you need, with no unexpected extra costs.

As independent RICS Registered Valuers, you get the best of both worlds – confidence in our experience and expertise, with the benefits of our highly personable approach to property valuations.

Our RICS Registered Valuers are a phone call away if you have any questions before or after your RICS Help to Buy Valuations, and we’re always happy to help.

What is a Help to Buy Equity Loan?

Help to Buy is a government loan scheme to top up the amount of money you have available when buying a house. It’s available when you buy a new-build property and you can borrow normally up to 20% of the full house price from the government.

Normally there’s no interest during the first five years, but the standard payments you make are only to cover the cost of the interest from year six onwards. If you want, you can repay the equity loan. Normally, you can either pay it off in full, or pay a partial sum of at least 10% of your property’s value.

Why a RICS Help to Buy Valuation is important

The amount you repay is based on the properties current market value, not on the amount you borrowed. If values have increased you will need to repay the original loan plus 20% of any appreciation. Conversely if prices have decreased the amount you repay will have reduced by that percentage too.

Torus Chartered Surveyors can carry out a RICS Help to Buy inspection in about 30 minutes, including a full check of the internals and externals of your property, its condition and any major defects.

Houses are valued using the comparable method of valuation as outlined in the Royal Institute of Chartered Surveyors’ (RICS) Red Book. Following your inspection the valuer will find similar properties to yours which have recently sold and make appropriate adjustments.

The market value for your property is defined as “The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion”

Our subsequent valuation report is guaranteed to comply with the requirements of Target HCA, the company appointed by Homes England to deal with the interest and repayments on your equity loan.

What you get in a RICS Help to Buy Valuation

When you arrange a RICS Help to Buy Valuation from Torus Chartered Surveyors, you get access to our qualified, experienced and friendly RICS Registered Valuer.

The Valuer will visit your property to take measurements and collect other data needed for your valuation, and then compile a 3-4 page report. Target will process this and provide you with a redemption figure to tell you how much you will need to pay back.

To find out more, contact Torus Chartered Surveyors today on 0161 929 7892 or email info@house-survey.co.uk and we’ll be happy to answer any questions you might have about RICS Help to Buy Valuations.