Buying further shares
Staircasing - how to purchase additional shares in your property
What is staircasing?
You are entitled to increase your ownership by purchasing additional shares when your lease is at least 12 months old. The process of purchasing additional shares and increasing your ownership is called staircasing. Your lease contains information that explains how to increase your ownership. It is important to carefully consider all the costs related to the staircasing process before you proceed. When you apply to us to increase your ownership, your rent account must be up to date and must remain so throughout the staircasing process.
Steps to staircasing
- The first step is to contact us to express your interest in purchasing further shares in your shared ownership property. At this stage you should provide details of any home improvements you have carried out with Yarlington’s consent (see FAQ). You can do this by emailing us at firstname.lastname@example.org
- We will make the necessary enquiries to ensure that you have the right to purchase further shares and that your rent account is up to date. We will then write to you with the terms and conditions of purchasing further shares.
You must agree in writing to the terms and conditions which include your written authority that you will pay the valuation fee. You must also provide the name and address of the solicitor who will be acting for you. There will also be a admin fee of £150.00 + VAT payable to YHG applicable for each staircasing application made.
We will then instruct an independent surveyor (FRICS/MRICS registered) who will then value your home.
As soon as the property valuation is received we will calculate the purchase price of the shares you wish to buy. After you have paid the valuation fee we confirm the purchase price and all other details to you by way of a formal offer letter.
No further action will be taken until you confirm in writing that you accept the figures and wish to proceed.
We instruct solicitors to act on our behalf and also pass on all relevant information to your solicitors. Both solicitors will then work together to agree a completion date.
If you have purchased 100% of your property and you do not pay us service charges you will no longer have to pay rent or have any further communication with us. If you have purchased the full 100% of your property and you currently pay service charges, these will continue. If you are not purchasing the full 100% we will contact you after completion to re-confirm the revised rent and/or service charges.
If you would like to discuss staircasing more, please contact your Shared Ownership Coordinator on 01935 404615 or email email@example.com
Frequently asked questions
How is the Purchase priceof the shares calculated?
When you staircase you buy the additional shares at the current market value of the property.
For example, if you wish to purchase an additional 25% share and your property is valued at £100,000 the purchase price will be £25,000. This means that if your home increases in value you buy the new shares at the increased value.
What is the minimum share I can purchase?
You may increase your ownership in separate stages or in one stage to 100% (depending on the restrictions in your lease). The minimum share you can purchase must be at least 10% of the unsold equity.
Will I still pay Yarlington Housing Group for my buildings’ insurance after completion?
If you have purchased the full 100% of your property you will need to arrange your own buildings insurance cover to commence from the date of completion. However, if you have purchased the full 100% of your flat, you will continue to pay your current monthly buildings’ insurance premium to us.
What if I have made improvements to my property?
When you apply to staircase, please notify us of any improvements you have carried out. Please remember that you need to request permission from us before carrying out any improvements to your home.
After receiving the details of any improvements we will write to you to confirm which agreed improvements will be taken into consideration when the property valuation is carried out.
Please note it is the added value that the improvements bring to your property and not the actual cost of the works that are taken into account.
What improvements will Yarlington accept?
Improvements such as double glazing, new fitted kitchen/bathroom, installing central heating, loft conversions and conservatories are considered. General maintenance, repair and redecoration are not regarded as improvements.
What Fee's are invovled?
You will need to pay the admin fee to YHG of £150.00 + VAT plus the cost of the valuation fee. This can vary depending on the fees set by the independant surveyor used. You will also need to factor in the cost of your own legal fees. It is reccomended to obtain at least 3 quotes from solicitors; choose a solicitor who has experience in dealing with shared ownrship staircasing transactions, and who you feel offers you the best value for money.