Staircasing with Shared Ownership?
25 June 2021
If you’ve already started your Shared Ownership journey, then you will know that the Government-backed scheme enables first-time buyers – or those who do not currently own a property – the opportunity to purchase a home at an affordable price.
Shared Ownership works by allowing a homebuyer to buy a share of a property, otherwise known as the ‘share value’. This share value is typically between 25% and 75% of the purchase price and represents how much of the property the buyer owns.
A discounted rent is then paid on the share of the property not purchased. This popular process can often work out cheaper than renting and is a great option for those who want to get on or climb the property ladder.
So, what’s staircasing?
Staircasing is a practice which happens after you’ve bought your home. Basically, it means you can buy more shares, so you own a higher proportion of your property. In most cases, you are able to staircase to own your apartment or house outright. In other words, you own your home in full and no longer pay rent. Happy days!
Of course, staircasing means saving more money, which you may not want to do, or be in a position to do. This is why staircasing is optional – it is completely your choice.
What are the rules?
Each home and development is different, so it’s advised you check the staircasing conditions before buying your home. Your lease will stipulate the rules surrounding this process. Not all homes can staircase, and others cannot staircase to 100% – sometimes there is a restriction.
However, here are the typical rules:
- You can only staircase three times.
- When buying more shares, these will be bought at the current market value. Your property will be valued and the share amount will be dictated by that valuation. For example, if your property is valued at £300,000 and you want to staircase to own 10% more of your home, you would buy an additional share for £30,000.
- You’ll require legal representation as staircasing means a change to your mortgage and lease. However, you do not have to instruct the same solicitor who handled the original purchase of your property.
Want to get on the property ladder with Shared Ownership?
We provide an array of top quality, contemporary apartments and houses across England. Start your search by viewing our current properties available and coming soon. Or, head to our social media profiles on Instagram and Facebook (@legalandgeneralaffordable) to ask your Shared Ownership questions. #LandGAH #Staircasing