Buying more shares in your shared ownership home
Staircasing - a guide to buying more shares in your shared ownership home
Staircasing is the process that lets you buy more shares in your home, as and when you can afford it. This means you’ll pay less rent and own more of your home.
A small number of Home Group homes can’t be bought outright, but any limitations on the number of shares you can buy will be set out in your lease.
Benefits of staircasing
The main benefits of staircasing are that you’ll pay less rent and could eventually own the maximum share allowed by your lease. You can also choose when to staircase, doing it as and when you can afford it.
While your mortgage and rent payments may change, there are a number of other costs and processes associated with staircasing that you should be aware of - from valuation reports to solicitor fees.
Metro Finance's Shared Ownership Staircasing Calculator will help you understand what might be affordable to you.
It’s also important to speak to your mortgage provider, an independent financial advisor and your solicitor to make sure you understand all the costs and processes involved before you start.
Buying more shares in your home (staircasing) FAQs
How many times can I staircase?
If your home was built and/or initially sold after 1 April 2006 you can staircase as many times as you like, at least 10% shares, until you own the maximum share allowed by your lease.
If your home was built and/or initially sold before 1 April 2006 you have a maximum of three times in which to staircase to outright ownership, in at least 20% shares.
Why might I not be able to staircase?
A small number of Home Group homes can’t be bought outright (so you wouldn’t be able to staircase to 100% ownership), but any limitations on the number of shares you can buy will be detailed in your lease.
You’ll also need to pay any arrears, and continue paying rent and/or service charges to Home Group before the sale of shares completes.
Also, staircasing is not permitted if the request to staircase is not signed by all of those who originally bought the property.
What are the costs for staircasing?
Costs for staircasing include:
- Valuation fees - charged by the RICS surveyor and range upwards of £250+ VAT
- Legal expenses - you will require the services of a professional solicitor. The charge covers the professional fees and disbursements. From £350 +VAT
- Mortgage fees - you may be required to pay a mortgage arrangement fee and the lenders valuation fee
- Stamp duty - you may need to pay Stamp Duty. Please discuss this with your solicitor
Where can I find independent advice?
- Homeowners home
- Make a payment
- Buying more shares in your home
- Selling your shared ownership home
- Selling back shares in your home
- Selling your discount for sale home
- Documents required when selling your home
- Leasehold retirement information
- Homeowner service charges
- Insuring your home
- EWS1 form
- Anti-social behaviour
- Repairs information for homeowners