Introduction

 

The idea of Shared Ownership is to help get you on the property ladder when you can’t afford to buy outright on the open market. Based upon your affordability, you can buy an initial share of your home between 25% and 75% and make a small monthly payment to rent the remaining share from us.

The great thing is that on most properties, you have the ability to purchase more shares or the remaining share when you can afford it, allowing you to build up to owning 100% of your home. The process of buying a bigger share of your home, or buying it outright, is called Staircasing.

You can increase your share by as little as 10% or staircase all the way to 100%. The bigger the share you own, the lower the rent payments will be. Once you have staircased to 100%, you will no longer be a shared owner and will own the property outright!

Example

 

You bought a 50% share of your property for £50,000 and you want to buy a further 25% now you can afford it, so how much will it cost? Let’s give the different scenarios;

  • Your house remains the same value as when the property was originally purchased at £100,000. It would be £25,000 to staircase up a further 25%
  • Your house valuation increases to £110,000. It would be £27,500 to staircase up a further 25% as the share price is based off the value of your property at the time you want to staircase.
  • Your house valuation decreases to £90,000. It would be £22,500 to staircase up a further 25% as the share price is based off the value of your property at the time you want to staircase.

 

Advantages of staircasing

 

Buying a bigger share of your home has many great benefits…

  • The bigger the share of the property you own, the lower the rent payments.
  • If you sell your home, you may still benefit from the increase in value.
  • There is no pressure to buy additional shares and no time limit on staircasing.
  • Staircasing allows you to own more of your home when you can afford it.
  • You have the opportunity to own your property outright.
  • If you own your home outright, you can sell it with no restrictions on the open market.

 

Staircasing Process – Step by Step

 

Step 1

Call us and we will check your lease to see what you need to do first. The property will need to be valued, but who can do this depends on what your lease says.

Step 2

Once we have received the valuation, we will work out all the figures and confirm everything in writing.

Step 3

Now all the figures have been worked out and we agree we are happy to proceed, you will need to provide us with the details of your solicitor so our legal advisors can work together to complete the sale.

Step 4

Once completion has happened, we will make all the necessary changes to your rent account and confirm when this has happened.