How to Staircase
As a Shared Owner you can buy additional shares in your home if you so wish. This process is called “staircasing”. You can staircase up to owning 100% of your home but any staircase must be a minimum of 10%. For certain rural properties, such as Sages Lea in Woodbury Salterton, there may be a restriction in place and staircasing is restricted to a maximum of 80% ownership. This is to safeguard the opportunity for Shared Ownership for future generations in designated protected areas (DPAs).
Is staircasing right for me?
We advise that you should speak to an independent financial advisor to check that you have the sufficient additional funds/income available to successfully staircase.
How do I staircase?
The first thing you will need to do is to let us know about your intention to staircase. You may wish to speak to a member of our development team in the first instance about the process.
You will need to supply us with a written confirmation (email or letter) of your intention to buy more shares in your home and any improvements you have paid for yourself. We will then send you a letter outlining the process from start to finish and letting you know what you will need to do.
Email development@cornerstonehousing.net
Will I have to pay for stamp duty?
Stamp duty is not mandatory until you have bought 80% or more of the property but you can opt to pay it on the whole house at the initial purchase. This could have advantages if your intention is to buy the whole property in the future and you are advised to discuss the pros and cons with your solicitor.
What happens next?
Getting your home valued
If you choose to go ahead with buying more shares we will get your home valued by a RICS (Royal Institute of Chartered Surveyors) approved surveyor, who will provide a fixed valuation price. Once we have received the valuation we will then be able to confirm the price of your additional share, the new rent amount and the stamp duty amount if applicable. At this stage we may also carry out an affordability assessment ourselves and a credit check.
What if I have made improvements to my home?
You will need to advise Cornerstone about any improvements you have made to your home so that an assessment of the improvements and possible added value can be made. This amount will then be removed from the final valuation price and the share you are intending to buy. You will then need to let us know who your solicitor is so we can confirm the price and rent amount in a Memorandum of Sale.
Do I still pay rent and a service charge?
If you intend to staircase up but not to 100% (partial staircase) then you will still pay rent but it will reduce in proportion to the share you have brought. If you staircase to 100% then you will no longer pay any rent in most cases and you will own the freehold. In either instance, you will be required to pay any service charges attributable to your estate.
Click here to read our Guide to Staircasing
