What is Staircasing?
As a One Vision Housing Shared Ownership customer, you have the right to buy more shares (increase your equity) in your home. This process is called staircasing.
The more shares you buy, the less rent you pay. You can purchase additional shares in minimum of 10% tranches, unless you staircase above 75% of your homes value (at 75% the minimum tranche available is 25% enabling you to own your home outright).
The additional share you purchase will be at a price equal to the relevant proportion of the current full open market of the property.
For example: if you wanted to buy an additional 25% and your property has been valued at £200,000, the purchase price would be 25% of £200,000, so £50,000.
Can I buy my home outright? (100% share)
If you wish, you can buy the remaining shares in ‘one go’, becoming an outright home owner. If you buy outright, you will no longer pay rent on your home (though service charges may still apply).
This will allow you to sell on the open market should you want to sell the property in the future. Where One Vision Housing own the freehold, you’ll be transferred the freehold once you buy 100%.
Is there any reason I would not be able to staircase?
If you have any rent and/or service charge arrears you won’t be able to staircase.
What costs are involved?
You will need to consider the following costs in relation to the staircasing process:
- Valuation fee
- You will be need to pay for a valuation of the property to provide a current open market value.
- Legal fees
- You will need to appoint a solicitor and will have legal costs associated to this.
- Mortgage arrangement fees
- If you’re buying a greater share through a mortgage, rather than cash, then you may incur mortgage arrangement fees. You should check this with your financial advisor or lender about this.
- Stamp Duty
- In some certain circumstances Stamp Duty may be payable, you should check with your solicitor if this would apply.
Working out the value of your home
In order to staircase you will be required to instruct a RICS qualified surveyor to undertake a valuation to assess the property’s current open market value.
Choosing a surveyor
We can provide a list of qualified surveyors. If you are choosing your own surveyor, we’ll ask that you complete an Independent Valuation Declaration form, with their relevant details and confirmation they have no interest in the property going forward.
What if I’ve improved my home?
When the valuation is undertaken at your property for staircasing, any home improvements you have made will be included in their assessment.
Examples of improvements that would be considered are conservatories, loft conversions and extensions and may increase the value of your home.
Please be aware that they will be asked to consider the value the improvements have added to your home, which can be different to the cost of the works.
Unlike major improvements, home maintenance, redecoration of the property or repairs will generally not be considered as improvements.
If there is a disagreement over the valuation, then your home can be revalued by another surveyor, but this will be an additional cost for you.
What will my new rent be?
When you buy more shares, your current rent will be reduced proportionally based on the extra % share you buy.
We will calculate the new rent when we have an idea of the new percentage you will own. If you buy 100% then you’ll no longer pay any more rent, but in some circumstances you may still need to pay service charges, although you won’t pay One Vision Housing for Buildings Insurance any more, instead you’ll be required to arrange your own Buildings Insurance.
Please note, your rent will not be affected by the market valuation at staircasing.