Buying more shares

The process of buying more shares in your home is known as staircasing. The greater the share you buy in your home, the less rent you’ll pay to us.

Staircasing is a simple process, and this guide will take you through each of the steps. If you need a little help, we have a specialist sales team on hand to help you navigate the staircasing process.

We offer two different options:

1. Interim staircasing Buying additional shares in your property to a total of less than 100%. Your rent will reduce in proportion to the share you own.
2. Final staircasing Buying additional shares in your property to 100%. In this case you’ll no longer pay us any rent. You’ll own the property outright and will no longer be classed as a ‘shared owner’

The nine steps to staircasing

1. Contact Alliance Homes: You must contact us to let us know you would like to buy more shares in your home (see Related Items: Intention to staircase form). We advise that you look at how the current market is performing to understand how much it is likely to cost you to buy further shares.
2. Have your property valued by an independent surveyor: You’ll need to have the property valued by a Royal Institute of Chartered Surveyors (RICS) qualified surveyor. This valuation will determine how much you’ll be required to pay to purchase additional shares in your home.
3. Complete and return our Intention to Staircase form: You’ll need to send us a completed copy of our ‘Intention to Staircase’ form, along with a copy of your valuation report to sales@alliancehome.org.uk.
4. Receive and accept Staircasing Offer Notice: Once we’ve determined the cost of purchasing additional shares, we’ll send you a ‘Staircasing Offer Notice’. If you’re happy with the value and wish to proceed, simply complete the enclosed ‘acceptance slip’ and return it to us.
5. Financial assessment & evidence your proof of funds/decision in principle: If you’re interim staircasing, you’ll be required to undertake a financial assessment. This is so we can ensure you can afford to buy the additional shares in the property and sustain the ongoing rent and service charges.
6. Appoint a solicitor to act on your behalf: You’ll need to let us know the details of the solicitor you're using for this transaction. We advise you choose a solicitor who is familiar with shared ownership staircasing transactions. Your solicitor and our solicitor carry out the process of collating all the required information to facilitate the purchase of additional shares.
7. Mortgage offer received (if applicable): Your mortgage lender confirms they’ll lend you the additional money or confirms your remortgage conditions. We’ll also receive a copy to approve.
8. Financial Completion Statement issued: Prior to your completion date your solicitor will issue a Financial Completion Statement. This statement will detail the costs payable by you, such as any admin fees and rent payable to us, legal costs, any mortgage advance fees etc.
9. Staircasing complete: Congratulations! Your solicitor will provide you with a copy of the memorandum of staircasing and will register your purchase with the Land Registry, confirming the share that you now own.

Frequently asked questions (FAQs)

• What are the benefits of staircasing?

  The main benefit of staircasing is that you’ll own a larger percentage of your home and pay less in rent. If you decide to sell your home, the greater the percentage you own, the more profit you’re likely to make.

• Is there any reason why I would not be able to staircase?

  We do not allow staircasing if you’re currently in arrears with your rent and/or service charges, or your current financial situation doesn’t meet our guidelines for responsible lending.
  
  Your property may also have staircasing restrictions (i.e. if your property is in a rural area your lease might restrict staircasing to 80%).

• Can I staircase with another person not currently named on my lease?

  You may be able to, however you’ll need to request permission from both us and your mortgage lender should you wish to staircase with an additional person. You’ll require a solicitor to act on your behalf in the transfer of equity, as well as your purchase of additional shares. There will be an additional fee payable by you, for the legal work involved in the transaction.

• What costs am I likely to incur when staircasing?

  Before you decide to buy more shares in your home, it’s important you consider the costs and time involved in staircasing. You’ll need to pay: RICS valuation, solicitors fees, rent & service charges, admin fees and stamp duty. In addition to the cost of buying additional shares, below provides a guide to some of the associated costs.
  
  

  • RICS survey/home valuation report: £300 to £500
  • Your Solicitors’ Fees: £500 to £1000

   

  Other possible fees to consider: Stamp duty, transfer of equity legal fees, mortgage arrangement fees.

• What documents will you need from me to start the staircasing process?

  You'll need to send us an up-to-date RICS valuation report (to determine the current value of your home and the additional shares you're looking to purchase) and a completed ‘Intention to staircase’ form from Alliances' Sales Team (sales@alliancehomes.org.uk).

• Why does my home need a valuation?

  Under the terms of your Lease, we will need to know how much your property is currently worth, so we can determine how much it will cost you to buy additional shares. You’ll need to instruct an independent valuer, qualified through the Royal Institute of Chartered Surveyors (RICS). Each time you staircase, a new valuation will be required.

• How do I get a valuation and how long will my valuation last?

  You can search for a local RICS registered surveyor on the RICS website: www.ricsfirms.com. Your valuation will last for three months. Should your purchase of additional shares not complete within three months, you'll be required to pay for a new valuation. At the point of deciding which surveyor to use, we suggest asking them to confirm how much they would charge you to provide an updated valuation should your initial valuation expire.

• How will home improvements affect my valuation?

  Your property will be valued in its current condition, excluding significant home improvements you have made since purchasing. We'll only be able to discount the impact of any home improvements you’ve carried out on your property, if you gained written permission from us, as detailed in your lease. We have a standard valuation request letter which you can pass onto your chosen surveyor to ensure that the valuation they carry out is accurate.

• What if I’m not happy with my valuation?

  If you’re not happy with the valuation provided, you’re able to challenge this by providing written reason for your concerns directly with your chosen valuer. You may then request your valuer reconsiders their opinion. If you’re still not satisfied with the outcome you may choose to instruct another RICS qualified valuer to revalue the property at your expense. We'll not be involved in this process and we should only be forwarded a copy of your valuation report once you're happy to proceed.

• How long on average will it take for me to staircase?

  This is dependent on several factors, however due to time constraints of staircasing valuations, we would expect you to complete on your staircasing transaction within three months.

• What’s involved in the financial assessment?

  If you're final staircasing, a financial assessment is not required.
  
  If you're interim staircasing, then you’re required to undertake a financial assessment, like the assessment you took when you initially bought your home. As part of the assessment, the Homes England Shared Ownership affordability calculator will need to be completed, as well as our budget planner. You'll also need to evidence a Decision in Principle from your mortgage lender (if applicable). Your financial advisor will need to see several documents from you (and anyone else who is purchasing additional shares).

• Can you recommend a solicitor?

  Although we’re unable to recommend a solicitor, we advise that you use a solicitor who's familiar with staircasing and re-mortgaging of shared ownership homes. It's important you choose a solicitor who understands the legal process involved, as you're expected to complete on your staircasing transaction within three months.

• How do I verify I have access to the funds if I'm a cash buyer?

  As part of your financial assessment, as a cash buyer, we’ll need to see evidence of your funds. Your solicitor will also need to satisfy themselves of the source of your funds and will need documentation to verify where the money is coming from.

  Funds	Funds Documentation required
  Savings	Copies of recent bank statements adding to the total value of the staircasing cost.
  Pension	Up to date pension statement and effective retirement date.
  Inheritance	Letter from the executors confirming the value of your beneficial interest.

  For large sums of cash, you may need to provide your solicitor with additional information to satisfy the requirement of adhering to anti-money laundering regulations.

• How do I get a mortgage offer (if applicable)?

  Your mortgage lender or financial advisor will be able to assist you with your mortgage arrangements to buy the additional shares.
  
  If you wish to arrange your own mortgage, you should talk to an Independent Financial Advisor or directly to banks and building societies and make sure you explain that you own a shared ownership home and are wanting to staircase. It’s important you explain to your lender/financial advisor that your staircasing valuation offer is only valid for three months and therefore it is imperative that they act quickly.

• What happens once I have completed on my staircasing transaction?

  Your solicitors will now register your transaction with the Land Registry and send you a copy of the signed Memorandum of Staircasing.
  
  We’ll adjust your account to show the increased share that you now own. If you have interim staircased you’ll still be responsible for paying us rent and service charges. If you've final staircased, you’ll no longer pay rent to us. You may still be required to pay a monthly service charge or estate charge and ground rent. We’ll send you a completion letter confirming all future payments.
  
  If you now own 100% of your property and your home is a house, you'll become a ‘freeholder’. You'll be required to arrange your own buildings insurance (as this will no longer be covered in your service charges), to start on the day that you complete on the purchase of your additional shares. If your home is an apartment, you'll still be classed as a ‘leaseholder’ as we’ll own the Freehold of the building that your apartment is in. Your buildings insurance will still be included in your service charges.
  
  Once you have staircased to 100% ownership, you're free to sell your home on the open market. Please note however, some leases will restrict you from selling your home for the first three-months following final staircasing.