As a Shared Ownership home owner, you can purchase more shares in your home. This is known as staircasing. Purchasing more shares after your initial purchase is completely up to you; it’s not something that you have to do. However, you can staircase if you’d like to reduce the rent you’re paying on the other share of your home.
If you are interested in purchasing additional shares of your home, you will need to speak to your Housing Association to get started. You will also need to get your property valued to find out the current market value. You are responsible for the cost of the valuation and it is important to bear in mind that a valuation only last three months. If you do not purchase additional shares within three months of your valuation, you will need to get your property re-valued.
Once you have purchased your additional shares, the rent you pay on the remaining shares owned by your Housing Association will reduce to cover the new share amount.
You may find that your lease sets restrictions on the number of times you can staircase, along with the minimum share you can purchase. This is usually 10% or 20%, unless it is the final share to reach 100%.
When you purchase more shares in your home, you can also expect to incur additional costs, including:
- Valuation fees
- Legal fees
- Mortgage arrangement fees
- Stamp Duty Land Tax (if you own an 80-100% share of your property)
When you staircase, you will be purchasing at least 10% of your property which may include you getting additional money from your mortgage lender.
Receiving an additional amount from your lender is known as a further advance. Alternatively, you may move to a new lender which is known as remortgaging.