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Buying more shares in your home

Buying more shares in your home

As shared ownership homeowners, many of you can buy more shares in your home if you’d like to reduce your rent and potentially boost the equity in your home, and in many cases own your home outright.

If your circumstances have changed, for example you are earning more money, you have inherited a lump sum or you have saved money, you could be on your way to 100% home ownership. Staircasing, as it is known, lets you incrementally purchase more of your home as and when money is available to you.

Buying more shares in your home allows you to reduce the amount of rent you are paying to us, or stop paying altogether if you end up buying the home outright. Once you own 100% of the property, you are free to sell it on the open market and you will benefit from any profit if your house has increased in value.

When staircasing, you will need to have your home valued by a RICS qualified surveyor , which we can arrange for a fee. Bear in mind that a valuation only last three months. If you do not purchase additional shares within three months of your valuation, you will need to get your property re-valued.

In addition to valuation fees, you can expect to pay legal fees as staircasing will involve changes to your existing lease, which will require the services of a solicitor. If you are applying to change lender (remortgage) to buy the additional share, or to get a better interest rate, you will also need to pay the lender’s valuation fee and possibly a mortgage arrangement fee.

You may also have to pay penalty charges to your current lender if you remortgage before the end of a pre-agreed deal or product that ties you in to set a timescale. Just be aware of the costs involved and take these into account when you are considering this.

Please note, if you are behind with your rent or service charges, you will need to bring these up to date before you can proceed with purchasing further shares.

If you have any more queries about the staircasing process, please contact our sales team or speak to your solicitor.

To speak to our Together Housing Sales team contact THG.sales@togetherhousing.co.uk

For more information you can visit our website.

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