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Home > Home Ownership > Buying more shares: Staircasing
Buying more shares in your shared ownership home: Staircasing
When the time is right, you may decide to buy a bigger stake in your shared ownership home. This is called ‘staircasing’ and it enables you to buy either a larger share in your home or to buy it outright, as your budget allows. How much can I buy at a time? You can either buy another 25% share, pushing your share up, for example, from 50% to 75% or you can buy all the outstanding shares to own 100% of your home. If your shared ownership lease was issued after July 2004, you can now buy in 10% shares. Either way you cannot take more than three “steps” to reach 100%. You should check the Shared Ownership Lease given to you by Hexagon to see exactly what your position is. For example, some leases do not allow you to buy all the shares in your home. Steps to Staircasing Are you eligible?
Tell Hexagon Write to us first to let us know that you would like to increase your share. If you bought your home with someone else, you must both sign the letter. Valuing your home Once you tell us that you intend to buy further shares, Hexagon will instruct an independent, RICS qualified Chartered Surveyor to confirm the current market value of your property. The value of the shares you are buying will be worked out using this figure. For example, if your home is valued at £200,000 a 25% share will be worth £50,000. Once we have informed you of the market value of your house, and the cost of buying a further share, you have up to three months to complete the purchase. After three months, the valuation will no longer be valid. If you decide to continue a new one will be necessary, which you must pay for. Please note that you must pay the cost of any valuations even if you change your mind about buying. Improvements to your home The surveyor will take account of any increased value due to structural improvements you have made. These improvements will be valued separately, so that you do not have to pay twice for your investment. You should always request Hexagon’s approval, in writing, before you make any improvements. Arrange a mortgage Find out from your Bank or Building Society if they will increase your mortgage. The amount you can borrow will affect how big a share you can buy. Remember that you will pay less rent if you buy a larger share, or no rent at all if you buy your home outright. Appoint a solicitor It is important that you have a solicitor to act for you, preferably someone who has had experience of shared ownership in the past. Staircasing costs As well as the valuation fee, you will have to pay your Solicitor’s fees. If your Bank or Building Society decides to revalue your home, you will also have to pay their valuation fee. What’s my next step? Get in touch with Hexagon. We can tell you more about buying further shares in your home. We can also help you to work out the finances to see if this is the best option for you. Call The Sales Team on 020 8778 6699, email: MGarcia@Hexagon.org.uk  Printer Friendly Version
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