Staircasing is the process of buying additional shares in your property over time. It’s a great way to reduce your monthly rent payments and increase your equity in the property. Here’s a clear, step-by-step guide on what to do if you want to staircase:
How to "staircase"
If you're considering staircasing with South Lakes Housing, you’re on your way to increasing your ownership and taking a step closer to owning your home outright!
Step 1 – Check your current ownership share
Before you begin the staircasing process, review the share you currently own in your property. For example, if you bought 50% of the property initially, you would have the opportunity to buy additional shares (e.g., 10%, 25%, or more) until you reach full ownership.
It’s important to consider how much of the property you can afford to buy. South Lakes Housing can help you assess your options and provide guidance on how much more you can purchase based on your finances.
Step 2 – Get an independent valuation
To staircase, the current market value of your property is needed. This will be determined by an independent RICS (Royal Institution of Chartered Surveyors) valuation, which is a requirement for all staircasing applications.
What the valuation involves
The surveyor will assess the market value of your home and provide a report. The price you pay for the additional shares will be based on this valuation.
Costs
We ask you to cover the cost of the valuation, which varies depending on the property size and location. When you are ready to proceed with staircasing, we can help you arrange a valuation. South Lakes Housing works closely with trusted professionals who can guide you through this process.
Step 3: Secure a Mortgage for the Additional Shares
Once the valuation is completed, the next step is to arrange a mortgage to buy the additional shares. You will be required to secure a mortgage for the percentage of the property you are purchasing.
Speak with your mortgage provider
If you already have a mortgage, check with your lender to see if they will allow you to increase your loan to cover the new share you’re purchasing.
Explore other lenders
If your current lender doesn’t offer the best deal for staircasing, you can explore other mortgage providers. South Lakes Housing can provide guidance and recommend mortgage advisors who specialise in Shared Ownership and staircasing.
You need a mortgage for the new portion you are purchasing (not the full market value of the property).
Step 4: Submit your staircasing application
Once you’ve arranged the valuation and secured the mortgage, the next step is to submit your staircasing application to South Lakes Housing.
What to include
Your application will include the valuation report, confirmation of your mortgage offer, and any other documentation required by South Lakes Housing.
Application review
Our team will review your application and ensure everything is in order before proceeding.
Step 5: Finalise the purchase and transfer ownership
After your staircasing application is approved, you’ll move on to completing the purchase of the additional shares. This typically involves:
Signing the transfer of equity
Once the legal documents are signed it will complete the transfer of ownership for the additional shares. This will be handled by your solicitor, who will ensure the paperwork is correctly completed.
Payment
You will pay for the additional shares based on the current market value of your property. The cost of these shares will be added to your mortgage.
Updated lease
After the purchase is complete, your lease will be updated to reflect your new ownership percentage. At this stage, you’ll own a greater share of the property, and your rent on the remaining share will be reduced accordingly.
