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.
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.