As a Shared Ownership home owner, you can purchase more shares in your home. This is known as Shared Ownership 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.
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:
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.
Speak to your Housing Association about purchasing additional shares.
Choose a surveyor to value your home to find out the current market value.
Arrange a mortgage with your current, or new, lender with your Mortgage Broker.
Receive your valuation and offer from the Housing Association– it is only valid for three months.
Your Housing Association issue a Memorandum of Sale when you accept the valuation offer
Instruct New Homes Law to assist in the purchase of your additional shares.
Once the mortgage offer is received, it will need to be sent to your Housing Association for approval (if staircasing to 100% it does not need to be approved).
Complete the purchase additional shares within three months of your valuation.
Your rent will be adjusted to the new share amount.
Check your lease as there may be a limit to the number of times you can staircase.
All shared ownership properties have a lease, when you staircase to 100% you may be able to transfer to a freehold if you own a house.
When you own 100% of a house (not a flat) you will be responsible for arranging your own buildings Insurance and will no longer be included in the Housing Associations buildings insurance policy.
RICS independent valuations are required prior to any purchase of additional shares to confirm the current market value of your home in order to determine the price of the additional share you wish to buy.
Valuations only last three months.