Staircasing means buying additional shares in a shared ownership home, and the price you pay is set by the current open market value of the whole property, assessed by a RICS registered valuer. You pay that percentage of the full value, not the percentage of what you originally paid. Because the valuation is the number everything else is calculated from, getting a properly evidenced one matters more than most buyers realise.
The essentials
The valuation is of the whole property at full market value, then your additional share is priced as a percentage of it.
Most providers require a RICS valuation rather than an estate agent appraisal, and set a validity window for it.
Improvements you have made are usually treated differently to general market movement.
The same principle applies whether you are buying a further share or purchasing outright.
How is the price of the extra share worked out?
The mechanism is simple once you see it. A valuer establishes the open market value of the property as a whole, as though it were being sold on the open market with full ownership. Your provider then applies the percentage you are buying to that figure.
So if you currently hold a share and want to increase it, the cost of the additional slice is that percentage of today’s full value. If values in your area have risen since you bought, the extra share costs more than the equivalent slice did originally. If they have fallen, it costs less. Your existing share is unaffected either way, because you already own it.
The corollary is that the valuation figure is not a formality. A figure that is too high means you overpay for the share. A figure that is too low may be rejected by the provider, wasting the fee and the time. This is one of the situations our RICS valuation service covers, alongside sale, probate and asset division work.
What does the valuer take into account?
Open market value is reached through comparable evidence. The valuer identifies recent completed sales of genuinely similar properties nearby and adjusts for the differences that a buyer would actually price.
| Factor | Why it moves the figure |
|---|---|
| Size and layout | Floor area, number of bedrooms and how usable the space is, which is not always the same thing |
| Condition | The property is valued as it stands, including anything needing attention |
| Tenure and lease | Remaining lease term, ground rent and service charge all affect what a buyer would pay |
| Location | Street level differences, aspect, parking and outlook, not just the postcode |
| Your improvements | Usually identified separately, since providers often treat added value differently to market movement |
What happens to improvements you have paid for?
This is the question that catches people, and the answer depends on your lease and your provider’s policy, so read both. The general principle in most shared ownership arrangements is that you should not have to buy back value you created yourself.
In practice the valuer is often asked to state the market value both with and without your improvements, or to quantify the uplift attributable to them, so the provider can apply its policy. That is why keeping evidence matters: dated invoices, before and after photographs, building regulations approvals and any planning consents. Where a kitchen was replaced or a loft properly converted with approval, documented work is far easier to account for than work you simply describe. Tell the valuer about it at the inspection rather than afterwards.
How does the process run?
1 Check your lease and provider rules
Minimum share increments, how often you can staircase, valuation validity periods and whether the provider nominates or accepts your choice of valuer all vary.
2 Instruct a RICS registered valuer
Confirm at the outset that the report will meet your provider’s requirements, since a report in the wrong format has to be redone at your cost.
3 Inspection and comparable analysis
The valuer inspects internally and externally, records accommodation and condition, notes your improvements, then analyses completed local sales.
4 Report issued and submitted
You receive a formal report stating the basis of value, the valuation date and the evidence relied on, which goes to your provider and your lender.
5 Complete within the validity window
Valuations expire, commonly after around three months. Line up your mortgage and solicitor before you instruct, so the clock does not run out on you.
Why not just use an estate agent appraisal?
Because most providers will not accept one, and with good reason. An agent appraisal is a marketing opinion, usually free, often given to win an instruction, and not prepared to a professional valuation standard. A RICS valuation states the basis of value explicitly, sets out the comparable evidence, and comes from a valuer who is registered, insured and accountable to a professional body. When a transaction price is calculated directly from a single figure, that accountability is the whole point. You can read more about what registration means on our RICS registered page.
Have ready before the inspection
Your lease, and your provider’s current staircasing policy or guidance notes.
Confirmation of the share you currently hold and the share you intend to buy.
Invoices, approvals and photographs for any improvements you have funded.
Current service charge and ground rent figures.
Details of any known defects, since the property is valued in its actual condition.
General guidance on how shared ownership works, including buying further shares, is published on the shared ownership pages on gov.uk, and the professional standards valuers work to come from the Royal Institution of Chartered Surveyors.
Frequently asked questions
Can I challenge a valuation I think is too high?
You can raise it, and the route matters. Rather than simply disagreeing, provide evidence: completed sales the valuer may not have seen, or a material fact about the property that was not reflected. A registered valuer will consider genuine new evidence. What will not move a professional opinion is an assertion that the figure feels wrong, so gather comparables before you make the case.
How long is the valuation valid?
Commonly around three months, though your provider sets the period so check rather than assume. If it lapses before completion you will normally need a fresh valuation and a fresh fee. The practical lesson is sequencing: have your mortgage arrangements and solicitor ready to move before you instruct, not after the report arrives.
Does staircasing to full ownership work the same way?
The valuation principle is identical. You are buying the remaining percentage at current full market value, established by a RICS registered valuer. What changes is the paperwork around it, since acquiring the final share usually involves converting your interest and can affect ground rent and how the lease operates. Your solicitor handles that side, and the valuation still sets the figure.
Will improvements always be excluded from the price?
Not automatically. It depends on your lease and your provider’s policy, and on whether the work is evidenced. Approved, documented improvements that genuinely added value are the strongest case. Undocumented work, or work carried out without necessary approvals, is harder to argue and can occasionally reduce value rather than add it. Keep the paperwork from the start.
Does condition reduce the valuation?
Yes, because the property is valued as it actually stands and buyers price condition in. In staircasing that generally works in your favour, since a lower whole property value means a lower cost for the additional share. It is worth pointing out anything genuinely defective at the inspection rather than presenting the property at its most flattering.
Should I get a condition survey at the same time?
Often sensible, particularly if you have been in the property some years and are about to increase your financial commitment. A valuation tells you what it is worth. It is not a condition report and will not analyse defects or set out repairs. Our guidance for buyers explains how the survey levels differ if that is what you need next.
Getting the number right
Staircasing is one of the few transactions where a single figure decides what you pay, with no negotiation on top. That makes the quality of the valuation the most important part of the process.
If you are increasing your share in a shared ownership home in Liverpool or the North West, contact Trust Surveyors and we will confirm what your provider needs.