Buying more shares in your home
You can generally buy more shares (or staircasing) in your home any time after you become the owner. The cost of your new share will depend on how much your home is worth when you want to buy it. We arrange an independent valuer to set the price of the share, but you’re responsible for paying the valuer’s fee.
Please bear in mind, if property prices in your area go up, you’ll have to pay more than you did for your first share. Likewise, if your home has dropped in value, your new share could be cheaper.
What are the benefits of staircasing?
Buying more shares in your home has a number of benefits:
- You reduce the amount of shared ownership rent you are paying to Equity, or stop paying altogether if you buy your home outright
- When you decide to sell your home, the more shares you own, the more profit you will make if the value of your home has increased
What costs are involved in staircasing?
Every time you staircase, there will be expenses you need to pay. Before you decide to staircase, please investigate the fees involved. These will include:
- Valuation fees
- Legal expenses — staircasing will involve changes to your existing lease which will require the services of a solicitor. The solicitor will charge you for this service
- Mortgage fees — if you are applying to change lender (re-mortgage) to buy additional shares or to get a better interest rate, you will need to pay the lender’s valuation fee and possibly a mortgage arrangement fee. You may also have to pay penalty charges to your current lender if you re-mortgage before the end of a pre-agreed deal or product that ties you in to set a timescale
- Rent and service charge arrears — if you are behind with your rent or service charges, you will need to bring these up to date before the staircasing can be completed.
Shared Ownership calculator:
There are a number of independent Shared Ownership calculators available to use, we think that this one is useful and gives you all the costs and calculations you need to understand whether you can afford to buy additional shares in your home or not.
To access the calculator, simply click here