Staircasing to buy more shares in your home
What is staircasing?
Shared Ownership is all about taking steps to own your own home, you start with the share you can afford and as time passes you can increase your share.
This process is known as staircasing. The greater the share you buy of your home, the less rent you’ll pay to Sage Homes. If you staircase to 100%, you’ll become an outright owner and pay no rent (just service charge if applicable).
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Five simple steps to staircasing
Step one: Contact Sage Homes for your free estimate
Contact us to ask for a free estimate of your home’s value. This isn’t the valuation that will be used to calculate the cost of buying additional shares. This free estimate will give you an idea of your home’s value and help you decide if staircasing is right for you. You can use this estimate as a guide when speaking to your mortgage advisor or mortgage lender. The staircasing value can only be based on a valuation provided by a RICS qualified surveyor and this may differ from the estimate we provide. Get your free estimate by emailing firstname.lastname@example.org
Step two: Speak to an independent financial advisor
We recommend that you speak to your current mortgage lender or an independent financial advisor to decide what you can afford. You should do this before you start the formal staircasing process to avoid unnecessary fees. Customer diligence and anti-money laundering Sage Homes must carry out basic customer diligence, identification and money laundering checks. We reserve the right to ask for further documentation and information from you to meet our legal responsibilities
Step three: Contact Sage Homes to request a RICS valuation
After you’ve checked with your mortgage lender or independent financial advisor, contact Sage Homes and ask for a RICS valuation. You’ll need to pay us for arranging the valuation and this will cost between about £250 and £350 but can vary depending on size and type of property. We’ll contact a RICS qualified surveyor and confirm the cost before you pay. Once instructed the surveyor will contact you and arrange to visit your home.
Step four: Valuation received - submit your application and pay your administration fee
When we receive the RICS valuation, we will share this with you within two working days. You should check with your mortgage advisor or mortgage lender that they are happy with the actual valuation. You will then need to pay our administration fee and provide us with the documents we need. We’ll then instruct our solicitors and the legal work will begin. This is when you should also instruct your solicitors.
Step five: Completion
Congratulations! You now own either a greater share or the full 100% value of your home. Your solicitor should now register your transaction with the Land Registry.
Costs of staircasing
How much does staircasing cost?
We’ll give you a free estimate of your home’s value. This will help you understand how much staircasing will cost you - before you do anything. These are the typical costs associated with staircasing:
- The RICS valuation fee. This varies but is usually between about £250 and £350
- Mortgage arrangement fees to your lender, if this applies
- Your lender’s valuation fee, if this applies
- Your legal fees and transfer of freehold costs (if staircasing to 100%)
- Our staircasing administration fee, which is £185
- Stamp duty - If you didn’t pay stamp duty on the full value of your home, you may need to pay extra stamp duty. Your solicitor will be able to advise you
- The cost of the extra share. This is set by the RICS valuation.