A guide to staircasing – buying a bigger share of your Shared Ownership home

Posted 30 December 2015 by Keith Osborne

If you're in a shared ownership home and would now like to buy more shares, a process known as staircasing, then here's a guide on how to proceed:

A guide to staircasing – buying a bigger share of your Shared Ownership home

If you're in a shared ownership home and would now like to buy more shares, a process known as staircasing, then here's a guide on how to proceed.

Make sure you have the finance in place                                 

Before anything else, ensure you have the financial means to buy additional shares in your property. For example, contact your mortgage lender to check whether you can borrow the amount required and allow for legal and other fees to conduct the extra purchase.

Get in touch with your housing association

Notify your housing association in writing of your intention to buy more shares. Your housing provider can also give you additional help and advice as they will, almost certainly, have already helped others in a similar position. You also need to make sure you have no rent arrears outstanding.

Have a new property valuation carried out

You will need a new valuation of your home carried out. This is because the value of your property may have changed since you first moved in. As such, the value of the remaining shares may have gone up or down in price. By finding out the current value of your property, you can find out the current value of the remaining shares.

How to find a qualified surveyor

A new valuation of your property should be carried out by a surveyor who is qualified. This means someone who is a member of the Royal Institute of Chartered Surveyers. This is important or else the valuation will be void. To find a qualified surveyor, your housing association may have a list of suitable valuers or else you can find one by clicking here. Once you have your chosen surveyor, contact your housing association to verify this is someone who is agreeable to them.

Information about the valuation

The valuation of your home is valid for three months. It will not take into account any improvements you have made to your home. If you're not happy with the valuation then you can challenge it by writing to your valuer stating your concerns. If you are happy with the valuation, you must forward it to your housing provider. Your housing provider should then inform you of the share price within a few days. You can then go ahead with the purchase.

A practical example of staircasing

You have initially bought 25% (£50,000) in shares of your £200,000 home. Now you want to buy another 10%. You contact your housing association. You find a mutually agreed qualified

surveyor and have a valuation carried out. The property is now estimated to be worth £210,000. Since you want to buy 10% of the remaining £160,000 (£210,000 - £50,000), you need to pay £16,000 for the additional 10% of shares.

Other information You can usually buy shares in lots of at least 10% up to owning 100% of the property. The exception being some rural properties where you can only buy up to 80%.

Find out more information on all aspects of Shared Ownership.

 

Search  



Click here to see your activities