Buying further shares in your home
Staircasing is your pathway to a bigger slice of home ownership
Imagine taking another step towards complete ownership, increasing your stake in your home, and slicing off a chunk from your rent. Sounds incredible, right?
It’s a fantastic opportunity for you, as a shared owner, to purchase more shares in your home, thereby decreasing your rent. You get to live in the same home you love and pay less rent; how exciting is that?
A choice of partial or full staircasing
* Dive into partial staircasing, where you incrementally purchase more shares in your home, but not all of them just yet.
* Or take the leap and plunge into full staircasing – going all in, securing all remaining shares, and basking in the glow of 100% ownership.#
The roadmap to your increased home ownership is etched in the lease agreement you signed when you embarked on your Shared Ownership journey. Make sure you revisit it. Remember, our team is always on standby to assist you and answer all your questions.
If your home has gained value since your last mortgage arrangement, it could be possible for you to secure an additional loan on your mortgage to increase your ownership percentage.
So, what's in it for you?
* As you acquire more of your home, your rent bill shrinks, and it can even disappear if you go for full ownership.
* You gain a larger stake in your home, or even full ownership if you fully staircase.
* Any appreciation of your home's value benefits you more.
* If you opt for full ownership, you unlock a wider array of mortgage lenders.
Isn't it exhilarating to know that you could have the power to increase your home ownership? That's the beauty of Shared Ownership staircasing!
Let’s look at an example.
The steps to staircasing
1) Start with a conversation: Reach out to us! We’ll check your lease agreement and ensure there are no restrictions or requirements that might surprise you. You can contact us here.
2) Financial insights await: If you are partially staircasing, we’ll ask you to engage with one of our panel mortgage brokers. They’ll conduct a brief affordability assessment, ensuring you’re well-prepared. You can find their contact details here. Your mortgage broker will talk to you about some of the fees that might be payable when staircasing.
For example:
a. Valuation/survey fees: Uncover the current value of your home with this essential fee.
b. Mortgage fees: If you are arranging a mortgage, there might be application or booking fees; this is usually paid directly to your mortgage lender.
c. Legal fees: Your solicitor’s expertise comes with a charge, ensuring everything is above board.
d. Stamp Duty Land Tax: A potential cost, but your solicitor will be your guide on this journey.
3) Discover your home’s worth: It’s time for a professional valuation! A Royal Institute of Chartered Surveyors (RICS) qualified surveyor will be appointed to assess your home’s current market value and the value of the share you’re buying. Before you embark on this step, touch base with us; we have insights from your lease and additional guidance to offer. You can ask us for a quote from our expert RICS panel members for your staircasing survey. Alternatively, you have the freedom to pick your own RICS surveyor; just ensure they match our standards.
4) An exciting proposal: The moment of truth! Once we’ve reviewed your valuation report, you’ll be presented with the option to purchase additional shares in your home, bringing you closer to full ownership.
5) Selecting your legal guide: Once you nod in agreement to the offer, you’ll need a solicitor to navigate the legal waters. Opt for one well-versed in Shared Ownership, Staircasing, and our processes. Need suggestions? Take a look here.
6) The grand finale: With all the paperwork in place, the shares are officially yours, and you’ve successfully ascended another rung on your homeownership ladder.
Ready to take the next step?
What is restricted staircasing?
# Most Shared Ownership leases allow you to staircase up to 100%. However, some leases are capped at 70%, 75% or 80%. This rule is known as restricted staircasing.
The cap, put in place by local government, ensures there are Shared Ownership homes locally for future generations.
We'll let you know if restricted staircasing applies to your home in the property listing.
For example, if you were to buy a property with an 80% restriction and initially purchased a 50% share, then the maximum you could increase your share in the future would be 30%.
If you'd reached the maximum 80%, of course, you could sell your home at this share level to someone who wants to buy your home using the Shared Ownership scheme.