A shared ownership valuation is a professional assessment of what a shared ownership property is worth on the open market—usually needed when you’re selling, staircasing (buying more shares), remortgaging, or dealing with a transfer/buyout. Because shared ownership sits between ownership and tenancy, the valuation process has extra rules, stakeholders, and time limits that don’t apply to standard freehold or leasehold homes.
The key point is this:
In shared ownership, the valuation doesn’t just guide you—it often drives the formal process and the price you must work to.
1) What is a shared ownership valuation used for?
Shared ownership valuations are most commonly required for:
A) Selling your shared ownership home
Most housing associations require a valuation to:
- set the asking price for the 100% market value, and
- calculate the price for your owned share.
It can also affect the association’s nomination period (their right to find a buyer).
B) Staircasing (buying more shares)
If you want to buy a larger share (e.g., from 40% to 60%, or to 100%), the price you pay is typically based on:
- the current market value (100% value) established by valuation, and
- the percentage share you are purchasing.
C) Remortgaging
Some lenders and housing associations require an updated valuation to:
- confirm the property’s value
- support affordability and loan-to-value calculations
- ensure the shared ownership lease requirements are met
D) Transfer of equity / relationship breakdown
Where one party is taking over the share, a valuation helps:
- establish the equity position
- support fair buyout calculations
- reduce dispute over “what it’s worth”
E) Probate / estate matters
If a shared ownership property forms part of an estate, a valuation may be needed (often at the date of death).
2) What exactly is being valued: 100% value vs your share value
This causes a lot of confusion.
A shared ownership valuation usually establishes the property’s full open market value (100%). From that:
- Your share value = 100% value × your owned percentage
- The housing association’s retained share is priced the same way
- Staircasing purchases are based on the current 100% value, not what you originally paid
Example (simple illustration):
- 100% market value: £400,000
- Your share: 40%
- Value of your share: £160,000
That’s the starting point—your mortgage balance, fees, and sale costs then affect what you actually receive or pay overall.
3) Why shared ownership valuations can feel “stricter” than normal valuations
Shared ownership valuations often sit within a rules-based framework, which can make them feel less flexible than open-market pricing.
Common reasons include:
A) Housing association requirements
Many housing associations require a valuation by a surveyor with certain credentials and a report in a set format.
B) Time limits
Often, the valuation is only valid for a defined period (commonly a few months). If the sale or staircasing doesn’t complete in time, you may need a new valuation.
C) The valuation affects multiple parties
Your buyer (if selling), your lender, and the housing association all have an interest. That increases the need for a clear, defensible figure.
4) What a surveyor looks at during a shared ownership valuation
The valuation approach is usually similar to any residential valuation—comparable evidence, condition, and market context—but with additional attention to the leasehold environment.
A surveyor will consider:
A) Property characteristics
- location and micro-location
- size and accommodation
- layout, natural light, floor level (for flats)
- outside space, parking, storage
- overall saleability
B) Condition
- level of maintenance
- upgrades or improvements (kitchen, bathroom, flooring)
- visible defects (damp, cracks, leaks)
- quality of presentation
C) Comparable sales evidence
The valuer will use sold prices of similar properties to support the market value conclusion. For shared ownership, it’s especially important to compare against true open-market evidence (not just other shared ownership resales that may have their own constraints).
D) Leasehold and building factors (for flats)
- service charges and what they cover
- ground rent (if applicable)
- building condition and management
- major works exposure
These can materially affect value and buyer appetite.
5) Improvements and alterations: do they increase the valuation?
Sometimes—but not always. Shared ownership homes can have limits on what alterations are allowed without consent, and buyers may value improvements differently depending on local market ceilings.
Improvements that often help value/saleability:
- good maintenance, decoration, cleanliness
- kitchen/bathroom refresh (where previously dated)
- improved flooring (where appropriate)
- storage and usability improvements
Improvements that may not fully pay back:
- very high-end finishes that exceed local buyer expectations
- niche design choices
- improvements that reduce bedroom count or practical space
Also, if alterations required landlord consent and it wasn’t obtained, that can create friction during sale or staircasing.
6) Common issues that can affect the valuation or saleability
Shared ownership sales and valuations can become complicated by:
A) High service charges (flats)
Rising or high service charges can reduce demand and impact achievable value.
B) Short lease length
Lease length affects mortgage availability, which affects buyer demand.
C) Building condition and major works
If there are major works planned, buyers may negotiate harder, and valuers must reflect market behaviour.
D) Restrictions in the lease
Subletting restrictions, pet rules, and alteration clauses can influence buyer appetite.
E) Local market conditions
Shared ownership properties are not immune to wider mortgage affordability changes and buyer sentiment.
7) Practical steps to make the valuation process smoother
If you’re selling or staircasing, you can reduce delays by preparing:
- your lease and shared ownership paperwork
- your owned share percentage
- service charge and rent statements (especially for flats)
- details of any improvements and whether consent was obtained
- access to all rooms and relevant communal areas
- a clear statement of whether you’re selling, staircasing, remortgaging, or transferring
A tidy information pack helps prevent repeated questions and speeds up the process.
8) What happens after the valuation?
This depends on your goal:
If you’re selling
- the valuation figure usually sets the benchmark for marketing
- the housing association may enter a nomination period
- you market the property in line with their process
- a buyer proceeds subject to affordability and shared ownership eligibility checks (where applicable)
If you’re staircasing
- the valuation figure is used to calculate the share price
- solicitors and the housing association process the staircasing transaction
- you may need lender involvement if refinancing is required
If you’re remortgaging
- the lender uses the valuation for loan-to-value
- the housing association may need to approve the lender or changes
9) The takeaway
A shared ownership valuation is usually a valuation of the full (100%) market value at today’s date, which is then used to calculate the price of your share for selling or staircasing. Because the valuation sits within housing association rules and time limits, it needs to be clear, evidence-based, and prepared with the correct documents and assumptions.
Need a shared ownership valuation?
Email mail@howorth.uk or call 07794 400 212. Tell us your property type and location, your current share percentage, and whether you’re selling, staircasing, remortgaging, or transferring. If it’s a flat, share the current service charge and ground rent (if any). We’ll explain the valuation process, what information is needed, and how to keep your shared ownership transaction moving smoothly.