Shared ownership stair casing what does it mean

 

 Shared ownership stair casing what does it mean

When you have lived in a shared ownership for a certain amount of time, you are eligible to buy further shares (this will all depend on your lease terms) you can gradually buy shares until you own the property outright this is why it is referred to as stair casing as you are gradually one stair at a time buying the remainder of the property. Also the bigger percentage you own in the home the less rent you pay until you own it out right. The more the property goes up in market value the more each share will cost unless you agreed a price with the freeholder at the beginning of the process.

https://www.sharetobuy.com/staircasing-calculator/

important notes
The minimum ‘equity’ to staircase depends ultimately on the lending criteria of mortgage providers prepared to offer staircasing remortgages. Our confirmation that you should or should not be able to staircase assumes that you could obtain a mortgage with such lenders. This mortgage calculator cannot be used as a guarantee of obtaining a mortgage and is simply confirming whether the amount of equity you possess could theoretically support staircasing to a higher share. In terms of credit history and credit score, you should note that for staircasing with the ‘minimum’ equity required to potentially obtain a remortgage, you may find that lenders are strict on credit score, compared to applicants with more sizable equity. Moreover, applicants with poor credit history are unlikely to be able to obtain a new mortgage.

Contacting your housing association
Customers looking to staircase should contact their housing association to advise them of their potential interest in purchasing further shares in their home. The housing association will then be able to provide information on the staircasing process (which is likely to involve a revaluation of your property).

Our monthly cost estimate
In estimating the likely monthly cost of any new mortgage, we have run the information you entered into the calculator via our live database of mortgages rates available in the market today, and used this data (e.g. deposit size) to find the lowest mortgage rate you might realistically be able to apply for. However, we must emphasise that this is no guarantee that in practice you would be able to apply for such a rate, nor is this a recommendation that the rate used would be the best product for you because you would have to take into account a range of items when choosing a mortgage, such as fees.

What are the benefits to Staircasing?

Most people aspire to own their own property and you made the step towards this when you bought your affordable home, even if you do not own outright.

Buying a greater proportion of your home has a number of benefits:

1. You reduce the amount of rent you are paying to Peabody.
2. If you decide to sell your home, the greater percentage you own the more profit you will make if the value of your home has increased. 
3. If you own your property outright (become a 100% owner) you can sell your property on the open market using an Estate Agent of your choice. 

If you are thinking about Staircasing, you should get in touch with an Independent Mortgage Advisor (IMA).

They will take time to understand your finances and help to calculate how much you can comfortably afford to Staircase, based on the anticipated value of your home.