Staircasing - Buying a larger share
Buying more shares for your Shared Ownership home
As a leaseholder of a Shared Ownership property bought either new, as a resale or via Social HomeBuy, you can buy further shares of your property. This process is known as “staircasing”, enabling you to own a greater proportion of your home. The greater the share you buy of your home, the less rent you will pay to Family Mosaic. If you staircase to 100% you become an outright owner and pay no rent.
The price you pay for any extra share is based on the market value of your home at the time you wish to buy, which could go up or down. The value will be set by an independent RICS-qualified valuer. There will be some costs involved in staircasing such as a valuation fee and solicitor’s fees, although it shouldn’t cost as much as buying your first share.
Buying additional shares of the property is known as interim staircasing. However, if you staircase to 100% (either in one transaction or after one or more interim staircasings) the share that takes you to 100% ownership is known as final staircasing. When this occurs, you own the property outright and are no longer a shared owner. In this case you will not pay rent to Family Mosaic but you will still pay the service charge and may have to pay an annual ground rent.
What are the benefits of Staircasing?
Most people aspire to own their own property and you made the step towards this when you bought your affordable home, even if you do not own outright.
Buying a greater proportion of your home has a number of benefits:
- You reduce the amount of rent you are paying to Family Mosaic.
- If you decide to sell your home, the greater percentage you own the more profit you will make if the value of your home has increased.
- If you own your property outright (become a 100% owner) you can sell your property on the open market using an Estate Agent of your choice.
How do I staircase and buy more shares?
The first step to staircasing and buying more shares in your home is to complete the request to staircase registration form. Once completed you will be emailed details of the next steps which includes appointing a Solicitor and getting a valuation for your home to calculate how much it will cost to buy another share. For more information on buying another share in your home, contact the Resident Sales Team by email email@example.com.
What is Staircasing?
Staircasing is where an owner of a Shared Ownership property purchases further shares of the property from the Housing Association who owns the remaining part. An owner can usually purchase in blocks (tranches) of 10% or more.
Moving Up the Ladder with Staircasing
Hillcrest Property Solutions help us explain the ins and outs of staircasing, the process of buying more shares in your Shared Ownership home.