You can purchase further shares in your home from us at any time up to 100% ownership.
For example, if you currently own 40% of your home but would like to buy another 20% share, you would own 60% of the property and continue to pay rent on the remaining 40% share.
This process is commonly known as staircasing and simply means you are one step closer to owning your property in full. Please note, in some areas, the amount of shares you can purchase may be limited so please check the terms in your lease.
Benefits of staircasing
- The more shares you own, the less rent you will pay
- Once you own 100% of the property, you will become the freeholder (unless you are purchasing an apartment)
- Once you own 100%, you can sell your property on the open market whenever you would like to, without first having to serve the eight week nomination period with Selwood Housing first.
How to staircase
If you are interested in purchasing more shares in your Selwood Housing shared ownership home, the first thing to do is to call our home ownership team on 01225 715 715 and give notice that you intend to staircase.
As the homeowner you are required to obtain a current valuation from RICS accredited chartered surveyor. There will be a charge for this. You can either source your own or we can arrange it on your behalf.
The valuation will normally be valid for six months, meaning if you do not want to staircase following the valuation right away, a new valuation may be needed.
Shares are sold at their current market value, for example if your home is valued at £200,000 and you would like to buy an additional 20% share, it will cost you £40,000 plus any relevant costs.
You will also need to appoint a solicitor to act on your behalf during the staircasing process.
Ways to pay for more shares
- Increase your existing mortgage
- Re-mortgage
- Cash savings
If you are considering extending your existing mortgage to purchase more shares, then your monthly mortgage payments are likely to increase. You will need to contact your mortgage lender or financial adviser to discuss the implications of this.
Expected costs to be aware of
As well as the cost of purchasing more shares, there can be other costs involved, these include:
- Valuation fees
- Your legal fees
- Mortgage arrangement or independent financial adviser fees
- Stamp duty where applicable
- Selwood Housing administration fees
- Increased monthly mortgage repayments
1% staircasing
If you have purchased a shared ownership home under the new shared ownership model, you have the option to purchase an additional 1% share in your home every year for the first 15 years without legal, valuation or admin fees.
The new shared ownership model applies to certain developments and in some instances, certain homes. If you are unsure which model applies to you, please contact us on 01225 715 715 or by email on info@selwoodhousing.com.
How does 1% staircasing work?
If you are under the new model of shared ownership, we will write to you once a year with an additional percentage value notice (APVN). This notice outlines the cost of purchasing an additional 1% share in your home. The valuation is based on the most recent Royal Institution of Chartered Surveyors (RICS) valuation and the Housing Price Index (HPI). The notice will be valid for 3 months. When you receive this notice, you have a few options:
- If you want to purchase the additional 1% share you must confirm this to us by returning the document attached to the notice.
- If you are not able to proceed at that time but wish to purchase an additional 1% later in the year, you can request an updated APVN at any time.
- If you do not agree with the value provided you can provide us with an updated RICS valuation at your own cost.
- You can also purchase an additional larger percentage share but in this case the standard staircasing procedure, as above, would need to be followed.
- You do not have to purchase the additional share, in this case you do not have to do anything.
The additional 1% cannot be carried into subsequent years.
