Staircasing –Buying further shares in your

shared ownership home

Staircasing – Buying further shares in your shared ownership homeAfter purchasing your shared ownership property you can, after 12 months, choose to increase the share you own. This is known as staircasing. The option to staircase is completely your decision, the advantage being you will pay less rent and that you will own an increased share in your property.

This is just a short introduction to the procedures we ask you to follow when staircasing. It is worth looking through your lease for particular specific requirements that are not covered under this guide.

Before you decide to staircase it is worth bearing in mind that you will be expected to cover the cost of valuing your property and solicitors fees. Your rent and service charge account must be up to date with no arrears before we consider staircasing.

The process of staircasing is in four stages:

Stage OneWe first recommend you speak to your mortgage lender about your options and look into how you will finance the extra purchase. Your mortgage lender will be able to offer advice on the increased payments you will have to make and any fees you may have to pay. You can also fund the purchase of additional shares by other means such as inheritance, savings, a gift etc.

Stage Two After you have received confirmation from your mortgage lender or have organised your finance from other sources, we ask you to inform us in writing of your wishes, including details of the share you wish to purchase and the solicitor who will be acting on your behalf.

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Stage ThreeA valuation of your home will be carried out by an independent valuer instructed by us, you will be charged for this. The valuation will be based on the current market value, not necessarily the figure you paid. This is valid for three months and we recommend that you aim to complete your purchase within this time frame; otherwise you may have to pay the additional costs of a second valuation and any further variation in value. This valuation is legally binding, therefore you will be unable to buy a share for less than this value.

Stage FourWe ask you to verify through your solicitor that you have funds in place for the additional purchase and then we will instruct our solicitor. During this time we advise you to keep in regular contact with your solicitor, who will be able to inform you about the progress.

Frequently Asked QuestionsWhat is the maximum I can staircase up to?

You need to first check your lease. If you have a rural lease as your property is in a small town or village, the maximum will be 95% compared to non rural where you can staircase up to 100%.

What are the costs involved with staircasing?

You will have to pay for the solicitors work, the cost of the valuation on your property and any fees your mortgage lender may charge.

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Shropshire Housing Group consists of the following organisations

Shropshire Housing Group consists of the following organisations

Equal Opportunities statement We recognise the damage that disadvantage and discrimination can cause. We are committed to equal opportunities and will take positive steps to ensure that you will not be treated less favourably than anyone else in your dealings with us because of race, religion, gender, marital status, sexual orientation, disability, class or age.

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Meres and Mosses Housing AssociationTalbot House, High Street, Wem SY4 5AAFreephone: 0800 434 6289 Tel: 01939 238 840 Email: enquiries@mmha.org.uk www.shropshirehousing.org.uk

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