Shared Ownership offers an affordable route to homeownership for those who may not be able to buy a property outright. But what if you want to own a larger proportion of your home over time? This is where staircasing comes in. Staircasing allows you to increase your share in your Shared Ownership property, ultimately leading to full ownership. Here's what you need to know about the process.
How Does Staircasing Work?
Staircasing allows you to gradually increase your share in your Shared Ownership property. You can purchase additional shares in increments, with the price based on the current market value of the property at the time of staircasing. For example, if you initially purchased a 25% share in your home, you could increase that to 50%, 75%, and eventually 100% ownership.
It's important to note that there may be a minimum share you can purchase with each staircasing step. Additionally, you'll need to have your property valued before each staircasing transaction to determine the current market value.
Why would I want to buy more shares in my Shared Ownership property?
There are several reasons why you may want to consider staircasing:
- To reduce the amount of rent you're paying and increase your ownership of the property.
- To take advantage of increasing property values and potentially benefit from any capital appreciation.
- To have more control over your home, for example, if you want to make improvements or alterations.
What are the costs involved in staircasing and how can I finance them?
There are several costs involved in staircasing, including:
- Valuation fees
- Legal fees
- Stamp Duty Land Tax (if applicable)
- Admin fees
You may be able to finance the cost of staircasing by using your savings or taking out a mortgage. Sign up to Stairpay if you are considering staircasing.
How long does it take?
The process of staircasing usually takes around two months from start to finish, but it can take as little as 28 days if everything proceeds quickly. The length of time required to arrange mortgage financing, if application, and the speed at which the solicitors involved can process the sale are some factors that can affect the process.
How Can Stairpay Help?
Staircasing can be a complex and confusing process, but with the help of Stairpay, it doesn't have to be. Our platform streamlines communication with solicitors and helps you stay organised throughout the staircasing process. You can easily upload documents, track progress, and manage your information all in one place.
Want to see if you can afford to staircase? Try our free staircasing calculator.
