CeMAP MRT2 Specialist Products, Schemes & Islamic Finance question: shared ownership flat valued

CeMAP MRT2Specialist Products, Schemes & Islamic Finance

Gwenllian bought 25% of a shared ownership flat valued at £240,000. It is now worth £280,000. What will it cost her to buy a further 25% share?

A £10,000
B £60,000
C £70,000
D £140,000

Show the answer and explanation

Answer: C. £70,000

Staircasing shares are priced at the current market value, not the original price: 25% × £280,000 = £70,000 (gov.uk shared ownership, checked 11 Oct 2026). Her rent then falls because the landlord's share drops from 75% to 50%. £60,000 uses the original value, £140,000 is the price of a 50% share, and £10,000 is only the growth on 25%.

Common mistake

Pricing the new share at the original purchase value.

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