As a shared owner, you have the right to buy further shares in your home if you want and can afford to do so. This is called ‘staircasing’.
What are the benefits?
Staircasing can help you buy your own home at a pace and time that’s right for you. The greater the share of your home you own:
the less rent you pay to us – if you buy 100% you will pay no rent at all
the more profit you will make on any increase in the value of your home when you come to sell
How many shares can I buy?
In most cases you can buy additional shares right up to 100% ownership of your home. However, some of our homes in rural areas or specifically for older people are restricted so you can only buy up to 75% or 80% of the property. This is to help keep sufficient affordable housing in the area. Your lease will tell you how many shares you can buy or you can call us to check on 0345 450 3995.
The minimum you can buy at any one time is 10%, but it is usually not cost-effective to buy less than a 25% share.
You can buy more shares at any time you wish, as long as you are up to date with your rent and any service charges, and can afford the increased mortgage payments.
How much does it cost?
The cost of the share you wish to purchase will be based on the market value of your home at the time. This has to be assessed by an independent, RICS-qualified surveyor. Your home may be worth more or less than when you originally bought it.
If you have made any improvements to your home which have increased its value, the valuer will take these into account.
So say, for example, you have built a garage on the side of your home and you now want to buy an additional 25% share. The valuer values your property at £110,000 but estimates that the garage has added £5,000 to the value. The price of the additional share would be based on £105,000, so would cost £26,150 for a 25% share.
Are there any other costs?
You will also need to budget for the costs involved in the purchase process, which include:
mortgage administration fees
Stamp Duty – in some cases
When you have completed the purchase, your rent payments will reduce, but other costs may increase, such as: