Shared Ownership and Staircasing
With shared ownership, you own part of the equity in the property, with the developer/housing association keeping a percentage of the property. These shares are reflected in percentages (ordinarily between 25% and 75%). The other share in the Property will be held by the developer/housing association and you will pay them rent at a discounted rate.
Provisions are available which may allow for you to obtain a larger share of ownership in the Property, in the future.
Shared Ownership and Staircasing FAQs
What is Staircasing?
Staircasing is the process where you increase your share in the property (ordinarily in stages of 10% or 25%) in your shared ownership home from the developer/housing association. This means that you will pay less rent, however your mortgage payments may increase.
What is the staircasing process?
- Instruct a solicitor early;
- Obtain a valuation – your staircasing cost depends on the current market value of the property. You will therefore need a RICS valuation to confirm the value.
- Contact the housing association to advise of your intention to staircase;
- A memorandum of staircasing is issued by the housing association, this outlines what percentage or share you are purchasing and what the shared ownership premium is
- Obtain a mortgage offer if applicable;
If you would like more information in relation to shared ownership property and staircasing, please do not hesitate to contact our team on 01302 341243 or conveyancing@chris-stevenson.co.uk.