Your shared ownership property - staircase or sell?

What's staircasing?

If you bought your shared ownership property a few years ago, you are probably considering your options. should you staircase or possibly sell? Staircasing is where you buy a further percentage of the property.

The possible benefits of staircasing

Very few shared ownership owners are in a position to buy out the Housing Association and become 100% owner. In the typical case of increasing your equity percentage of perhaps a further 10% or 20% the 2 obvious benefits are :-

1. Lower Rent: The more you own, the less rent you pay. Your mortgage payment will go up, but you won't be stuck with rising rents forever.
2. Property Value Gains: When the property value goes up, you benefit more if you own a bigger share.

What's involved? Process and costs

Staircasing is optional, not mandatory. You can usually staircase up to 3 times, with the last one reaching 100% ownership.he cost of buying more shares is based on the current market value of the entire property. The minimum amount you can buy is typically 10% or 20%, depending on your lease. If you decide you want to potentially go ahead :-

1. Contact Your Housing Association: Let them know you're interested.
2. Talk to Mortgage Lenders: See if you can afford a bigger mortgage.
3. Get a Valuation: A surveyor will estimate your home's current value.
4. Sign the Paperwork: There will be a legal document called a "Memorandum of Staircasing".
5. Find out about all the fees - you will need a valuation, which will cost at least £250, there will be mortgage fees associated with a new mortgage, legal fees and Housing Association fees.

Selling a shared ownership property - key points

• If you've staircased all the way to 100% ownership, selling is similar to any other property. Just double-check your lease for any specific rules.
• If you want to sell with less than 100% ownership the Housing Association (HA) gets first dibs on finding a buyer during a "nomination period" (usually 4, 8, or 12 weeks). This can sometimes lead to a faster sale than the open market as the The HA will also help with marketing and providing the Leasehold Information Form.
• If selling with less than 100% share you'll need a valuation by a qualified surveyor before selling and there will likely be fees for the HA's legal work, the valuation, and the Leasehold Information Form.

Is Selling Shared Ownership Harder?

In some ways, it can be easier. The HA can help find a buyer quickly, and they handle some of the paperwork. However, there are extra costs to consider.

SHARE THIS ARTICLE