Buying more shares in your home to increase the proportion you own is easy with Plumlife. Our guide below can help you decide what is right for you.
Staircasing is available to those who have purchased a property via shared ownership and now want to buy more shares, increasing the share of the equity and reducing rent charges.
When you first bought your home with shared ownership, you may have only been in a position to buy a share of 25% for example. Since then your circumstances may have changed, putting you in a position where you can afford to buy more shares in your home.
The price you pay for each share you want to buy will depend on the value of your home at that time. Instead of increasing your share you may just want to buy it outright which means you will no longer pay any shared ownership rent to Plumlife.
If you live in a flat, or a house with communal services like gardening or maintaining play areas, you will still have to pay a service charge.
Buying more shares in your home has a number of benefits:
In 2015, Matt and Jake took the plunge and bought a 43.3% share in a new home in Heaton Moor, Stockport.
Shared Ownership allowed Matt and Jake to take their first step onto the property ladder, but their home ownership journey didn’t stop there, 7 years down the line, they found themselves in a position where they were able to buy the remaining 57% through staircasing meaning they would own their home outright.
In the majority of cases, yes, through staircasing you can increase the share of your shared ownership property to 100%, so it becomes completely yours!
There are however some occasions when this may not be possible. There are some rural locations and leases which won’t allow you to staircase to 100% ownership, but our team will be able to guide you to where those restrictions apply.
In most cases, you will be able to buy your shared ownership home outright, but if you’re unsure you can give our friendly team a call on 0161 447 5050 and they’ll be happy to help.
We’d recommend checking your lease to see if there are any restrictions which limit how much you can staircase, as some properties are subject to caps or limits.
No, staircasing is completely optional! Whether you stick to your original share or buy more is completely up to you and your individual circumstances, but it’s a great option to consider if you’re in the position to do so!
In most cases, there are no restrictions to the number of times you can staircase – however you must check your lease, and bear in mind that staircasing will incur costs such as conveyancing and surveyor fees each time.
After purchasing a shared ownership property, in most cases you can staircase at any time you wish.
Yes, you must appoint a conveyancing solicitor for staircasing. There is legal work involved in the process, and your chosen solicitor will carry this out for you.
Your valuation needs to be done by a valuer who is a member of the Royal Institution of Chartered Surveyors (RICS). Please note an estate agent, bank or building society valuation is not classed as an independent valuation and will not be accepted.
The valuer will ask you about your rent, service charges and improvements you have made to your home. They will then separately assess any improvements you have made to your home.
You must have asked our permission before making any improvements. Improvements made without our permission may not be considered when you come to staircase and the valuation should be based on the property having been maintained.
The price will be a percentage of the full market value. For example, if the full value of your home is £200,000 and you want to buy the remaining 50%, the cost will be: £200,000 x 50% = £100,000.
The valuer will send you their report and invoice you directly.
The price of the share you’re buying will be a percentage of the value without the improvements, as shown in the following example.
The full value of your home is £203,000. This includes £3,000 of improvements you have made. The value without your improvements is £200,000 (£203,000 minus the £3,000 of improvements). This is known as the ‘net value’. If you own a 50% share and want to buy the remaining share, the price will be 50% of the net value. That is, £200,000 x 50% = £100,000.
Not all improvements add value. Carpets, curtains and furniture which haven’t been fitted do not count as improvements. Some improvements may fall in value due to wear and tear. The valuer must list the improvements on the report, so make sure you’re clear what should be included.
We recommend that you speak to your current lender or an independent financial advisor (IFA) when deciding on the size of share that you can afford and to see how much money you will be able to borrow.
The extra shares come in certain sized ‘chunks’ set out in your lease, usually 20% or 25%.
The minimum amount you can buy is 10% and then by 5% i.e. 10%, 15%, 20%, 25% and so on.
Please be aware that some of our homes cannot be bought outright. On a limited number of developments you will only be able to buy a share up to 70%, 75%, 80% or 95%.
Your lease includes information about staircasing restrictions, if there are any.
If you did not pay stamp duty on the full value of your home, you may need to pay additional stamp duty. We cannot advise on stamp duty but your solicitor should be able to answer any questions for you.
If you purchased your property under the new Shared Ownership model, you have the option to buy 1% per year for the first 15 years of your time in the property. This re-sets on each resale (i.e.. not the first 15 years of the property).
You’ll need to use a solicitor when you buy an extra share in your home. Some people prefer to use the solicitor who dealt with their original purchase, they should have easier access to information about your property. Others are solicitors commended by their mortgage lender. We need the details of your solicitor before you can go ahead with staircasing.
Click here to download our staircasing instruction form.
You’ll need to fill out the staircasing instruction form and send this in to us with a copy of your valuation and details of your solicitor. You can post this to us or email it to: salesservices@plumlife.co.uk Please send all your documents at the same time. We won’t be able to start processing your application until we have the staircasing instruction form, the up-to-date valuation and your solicitor’s details.
If you purchased your home under the new Shared Ownership model, you will be eligible to staircase by 1% per year for the first 15 years. The following costs do not apply to 1% staircasing as surveyors and solicitors are not involved in the transaction.
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:
There can be some limitations on buying more shares and not all of our properties allow you to staircase.
Your lease may restrict how much you can buy by a certain amount or a certain percentage, so check your lease before you begin.
If you live in a house you will normally be granted the Freehold Title on the property, but in certain circumstances Plumlife may not be able to do this.
If you live in a flat then, even if you have staircased to 100% ownership, you keep your current lease but certain parts of it no longer apply.
You should have a copy of your lease from when you purchased your home. You can get a copy from HM Land Registry by applying online at https://eservices.landregistry.gov.uk or request a copy from Plumlife but a fee will be payable. It is quicker and cheaper for you to download this yourself.
