Your guide to staircasing
If you're a shared ownership homeowner you can buy more shares in your home when you're ready. This is called staircasing.
Buying more shares in your home
What is staircasing?
This process is known as staircasing. The greater the share you buy of your home, the less rent you’ll pay to Sage Homes. If you staircase to 100%, you’ll become an outright owner and pay no rent (just service charge if applicable).
Interim staircasing
Buying a greater share of your home to a total of less than 100% is known as interim staircasing. When you interim staircase, your rent will reduce in proportion to the share you own after completion. Service charge will be unaffected.
Final staircasing
If you staircase to 100% (either in one transaction or after one or two interim staircasings) the share taking you to 100% ownership is known as final staircasing. When this happens, you own the property outright and are no longer a Shared Ownership customer. You won’t have to pay rent to Sage Homes, but you will still pay service charge (if applicable).
How much does staircasing cost?
We’ll give you a free estimate of your home’s value. This will help you understand how much staircasing will cost you - before you do anything. These are the typical costs associated with staircasing:
• The RICS valuation fee. This varies but is usually between about £250 and £350
• Mortgage arrangement fees to your lender, if this applies
• Your lender’s valuation fee, if this applies
• Your legal fees and transfer of free hold costs (if staircasing to 100%)
• Our staircasing administration fee, which is£185
• Stamp duty - If you didn’t pay stamp duty on the full value of your home, you may need to pay extra stamp duty. Your solicitor will be able to advise you
• The cost of the extra share. This is set by the RICS valuation.
How long does it take?
Staircasing usually takes between four weeks and three months. Your case may vary.
After staircasing
Sage Homes will adjust your account to show the increased share you own in your home. We’ll also refund any rent monies owed, send confirmation of your new charges and/or close your account depending on your circumstances.Your service charge will remain unchanged if you have bought less than 100% of your home, but if you have bought all the remaining shares in your property your service charge may change. If you live in a house and become the full owner you’ll no longer be covered under Sage Homes’ building insurance. From the date your staircasing transaction completes, you’ll need to arrange your own building insurance.
Your solicitor should:
• Provide you with a copy of the memorandum of staircasing signed by Sage Homes
• Register the memorandum of staircasing with the Land Registry and confirm this with you and your managing agent if you pay service charges directly.
You should:
•Make sure you’ve received the signed memorandum of staircasing from your solicitors. Keep this safe together with your lease
• Contact our homeownership service steam if you have any questions regarding direct debits and refunds.
Final staircasing: what’s next?
Live in a house? Once you’ve staircased to 100% ownership, the freehold can be transferred to you. Your solicitor will need to serve notice to Sage Homes requesting the freehold of the property be transferred to you. There’s a charge for this transfer which is outlined in our administration fee breakdown.
On completion of the transfer, you’ll no longer be charged for building insurance by SageHomes. You’ll need to have your own policy in place. In some cases you may still have to pay an estate management charge if you live on an estate and are responsible for some of the communal costs (please refer to your lease, or ask your solicitor).
Live in an apartment? Once you’ve staircased to 100% you will no longer pay Sage Homes rent, however you are still required to pay service charges and management charges.You’ll still be covered under the block building insurance policy. Once you own 100% of your home, you’re free to sell it on the open market.
If you choose to sell and find a buyer, your solicitor will contact Sage Homes with any enquiries from your buyer’s solicitor (please note there is a charge for this service). Some leases restrict you from selling for three months following final staircasing.
Frequently asked questions
How is the purchase price of the shares calculated?
When you staircase, you buy the additional share of your home at the current market value. For example, if you wish to purchase an additional 25% share and your property is valued at £100,000, the purchase price will be £25,000. This means if your home has increased in value, you buy the new share at the increased value.
What is the minimum share I can purchase?
You can increase your ownership in stages or jump to 100% ownership in one stage. You may also be able to staircase in 1% increments. Check your lease to see if you are eligible for these options. The minimum share you can purchase is 10% of the unsold equity. You may only be able to staircase a maximum of three times. If you partially staircase we will also need to see and approve your new mortgage offer (if applicable).
What if I disagree with the valuation?
The RICS valuer will use recently sold similar homes to work out valuation. They’re required to act independently. Both you and Sage Homes can query the valuation but would need to provide evidence based on comparable sold properties. The valuer may accept further evidence but their opinion on the value is final.
Will I still pay Sage Homes for my building’s insurance after completion?If you have purchased the full 100% of your home, and your property is a house, you will need to arrange your own building insurance cover to commence from the date of completion.However, if you have purchased the full 100% of your apartment, it’s possible that you’ll continue to pay your monthly building insurance premium to us as part of the service charge. Alternatively, you may have to pay this directly to a managing agent.
