Shared ownership - Staircasing process and application
You can buy more shares in your property or buy it outright as and when you can afford to. This is called Staircasing. The minimum you can buy at any one time is 10%. The more shares you own, the less rent you pay. If you own the property outright, you would no longer pay any shared ownership rent. However, you may still have to pay a service charge if you live in a house or flat where there are communal/shared services.
The price you pay for additional shares is based on the open market value of the property at that time. For example, if you own 50% of the property, the full market value is £150,000 and you want to buy the remaining 50% outright, the cost will be £75,000.
It is important that you check your lease to find out whether there are any restrictions on staircasing before you apply to buy additional shares. You should have a copy of your lease from when you purchased the property. If not, you can get a copy from Gov.uk - HM Land Registry by applying online at eServices Land Registry or, request a copy from the Council but a fee will be payable.
Are there any costs?
Please explore the costs involved before you decide to staircase. You will have to pay for the cost of a Royal Institute of Chartered Surveyors (RICS) valuation, legal fees and an administration fee to the Council for processing your staircasing application. You may also be responsible for the payment of legal fees incurred by the Council. Please also check with your solicitor, as there may be additional fees payable under the terms of the lease.
What do I need to do if I want to buy more shares in my property or buy it outright?
First, you must get an independent open market valuation on your property from a qualified surveyor who must be a member of the RICS. An estate agent's valuation or valuation carried out by a bank or building society for mortgage purposes is not acceptable, as it is not classed as an independent valuation. Listed below is a RICS accredited surveyors. You can appoint a different surveyor if you choose to, providing they are RICS accredited:
Ian S Parr Chartered Surveyors,
Tel: 01204 886785,
Please ensure you let the surveyor know if you have made substantial improvements to the property. If these improvements add value to the property, the surveyor may disregard them from the price you pay to staircase, providing you had permission from us to undertake the improvements. Carpets, curtains, and light fittings are not classed as improvements.
Complete the 'Application to Staircase' below (you will need to upload a copy of your RICS valuation). Please note, your RICS valuation report is only valid for three months and you may need to pay for another valuation if the staircasing process is not complete within three months from the date of your RICS valuation.
Once we have confirmed that we have received your application, you will have to appoint a solicitor to act on your behalf in the transaction. Please let us have the details of your appointed solicitor as soon as you are able, in order to complete the Staircasing process.
Please complete the online form below.