Buying more of your home (Staircasing)
In most cases, you may be able to buy further shares at any time following the initial share purchase. This process is known as ‘Staircasing’. You are under no obligation to buy more shares; it’s up to you to decide what is right for you. Should you wish, you may be able to staircase as many times as you wish until you eventually own your home outright. The value of your home may have changed since originally buying the initial share; the value of your home may have gone up or gone down. The share/s you buy following the initial share purchase will be based on the ‘current’ market value at the time you wish to buy. When you purchase more shares your monthly rent payments decrease. If you should decide to purchase your home outright in the future, then there will not be any further rent payable.
Please note, that some leases may only allow you to purchase up to a specified percentage of the equity in your home. The minimum purchase share is 10%. Please refer to your lease for the applicable terms. It is important to carefully consider all the costs related to the staircasing process before you proceed. When you apply to us to buy further shares, your rent account must be up-to-date and must remain so throughout the staircasing process.
STEPS TO STAIRCASING
You can buy further shares in your home, usually in 10% blocks. This process is called ‘staircasing’.
Step One
The first step is to inform the Association in writing of your desire to purchase additional shares, including the size of the share you wish to purchase. This is known as the ‘notice of intention’. Please provide details of any home improvements you have carried out to the property. Also, please enclose a cheque for the amount of £70.50, made payable to Aragon Housing Association. This is to cover the valuation fee, which is payable by the shared owner (you).
Step Two
The Association then requests the property to be valued by an independent valuer. The valuation shall assume that you already own 100% and any improvements carried out by the shared owner are disregarded. This valuation will be valid for a specified period of time, normally three months. (Please refer to your lease for the applicable terms)
Step Three
As soon as the property valuation is received we will calculate the purchase price of the shares you wish to buy and inform you in writing. You then have to decide whether to proceed with the purchase. The valuation must not be more than three months old at the time of completion. If your staircasing purchase has not completed by this time, an updated valuation will be required (an additional charge will apply to up-date this valuation). If the property valuation changes when updated, then the purchase price will be recalculated, regardless of whether this is higher or lower than the original valuation.
Step Four
We confirm the purchase price and all the other details to you within seven working days from receipt of the valuation. If the valuation of the property indicates that the value of the property is reduced due to a lack of maintenance and repair, we will request a valuation of the property assuming the property had been maintained to a good standard. This is within the requirements of your lease and the purchase price will be based on this figure.
Step Five
No further action will be taken until you confirm to us in writing that you accept these figures and wish to proceed. When you do, you will need to tell us the name and address of the solicitors that will be acting on your behalf.
Step Six
We instruct solicitors to act on our behalf and pass on all relevant information to your solicitors. Your solicitors and our solicitors then work together to agree a completion date. You are given a specified period of time to arrange a mortgage and complete the purchase of the additional share. You will have three months from the notification of valuation to complete purchase.
Step Seven
Completion. If you have purchased 100% of your property, you will no longer have to pay rent. If you do not pay us a service charge you will have no further communication with us. If you have purchased the full 100% of your property and you currently pay service charges, these will continue. If you are not purchasing the full 100%, we will contact you after completion. This is to re-confirm the revised rent and/or service charges that you pay from then on.
