The United Kingdom’s government is dedicated to creating more home ownership. This goal has spawned a few scheme to help people with different backgrounds, low-income and disabilities. Shared ownership is one of those programmes that help individuals with low income to own a portion of the house which is between 25-75% of the total property. The scheme also allows shared ownership individuals to increase their share of the property with a method called staircasing. Allowing shared ownership of the property to complete ownership increases enthusiasm among buyers. Here’s some staircasing advice you should consider.
Shared ownership is shared with a housing association. The partial ownership share to some extent limits your control over the property and operation. The housing association is responsible for major modifications and before you need any special adjustment on the property. In staircasing, if you increase your ownership from 10 percent to under 100 percent then it is called partial staircasing. If you want to increase your ownership to 100 percent, it is known as full staircasing. To go ahead with staircasing, a minimum of 10 to 20 percent increase is required until the final staircasing for 100 percent.
The process of staircasing is less troublesome and faster than conveyancing for obtaining shared ownership. Still, that can be daunting for someone inexperienced with legal responsibilities. The process of staircasing normally includes the following process:
- Dealing with the appropriate Housing Association
- Getting a valuation of the property
- Contacting with the mortgage lenders
- Completion of Memorandum of Staircasing
Dealing with the relevant Housing Association
The housing association is responsible for renting the share of the property you do not own. You have to buy additional shares of property until you reach 100 percent ownership. The process includes contacting the housing association to allow you own an increased share of the property. The process can be made efficient with the help of an experienced solicitor. Their staircasing advice can speed up the process and help with legal aspects of the process.
Getting a valuation of the Property
When you need to increase your share, you have to consult the RICS for valuation. An RICS surveyor will valuate the current cost of the property. Moreover, the amount is divided by the percentage of the property you decide on increasing ownership. The housing association can appoint a surveyor, but you have to finance the operation.
The valuation cost is considered valid for three months, so the staircasing should complete within this period. Failure to complete staircasing within the period will require a new assessment.
Contacting with the mortgage lenders
If you are obtaining a mortgage for staircasing or remortgaging the property, it is important to complete mortgage deal. This is going to finance the staircasing of the property. It always helps to have a good credit rating for a speedy mortgage approval.
Completion of Memorandum of Staircasing
If you are acquiring an additional share of the property and not the complete share of the property, the housing association will send you the Memorandum of staircasing. This is done after the payment for the share is complete. You have to sign this document, and it is registered with the Land Registry. If you have appointed a solicitor, they will handle the Memorandum of Staircasing for you.