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We can help with staircasing

What is staircasing?

As a leaseholder of a Shared Ownership property bought either new, as a resale or via Social HomeBuy, you can buy further shares in your property. This process is known as staircasing, enabling you to own a greater proportion of your home. The greater the share you buy in your home, the less rent you will pay to Family Mosaic. If you staircase to 100% you become an outright owner and pay no rent!

Download our guide to staircasing here:

Staircasing

What provisions are there for staircasing?

The general provisions associated with staircasing will depend on the lease and the time the original lease of the property was issued. The key date affecting your provisions is 1st April 2006.

What are the benefits of staircasing?

Most people aspire to own their own property and you made the step towards this when you bought your affordable home that you don’t own outright. Buying a greater proportion of your home has a number of benefits:

You reduce the amount of rent you are paying to Family Mosaic.

When you decide to sell your home, the greater percentage you own, the more profit you will make if the value of your home has increased.

If you own your property outright (become 100% owner) you can sell your property on the open market using an Estate Agent of your choice.

If you staircase and own your property outright, you can sell your home to anyone interested in buying it and not restricted to those applying for affordable homes who meet the criteria within the lease i.e. if you have a key worker lease, you usually must sell to a key-worker.

Becoming the outright owner allows you to maximise the profit from any major home improvements. Once you own 100% you will get back the full amount of any profit on the current market value when you come to sell your home.

Stages to staircasing

1. Contact the Resident Sales team to request application to staircase.

2. Search for a solicitor to act for you.

3. Speak with your lender and/or mortgage advisor about purchasing a further share in your home to ensure you can obtain additional funds and the costs involved.

4. Complete the staircasing application form, select the surveyor and send the valuation fee to the Sales and Marketing Team.

5. Family Mosaic instruct the surveyor (RICS or ISVA qualified) to obtain the current open market value of your home.

6. The valuer sends Family Mosaic two copies of the valuation report on your home with comparatives (this is valid for three months).

7. We check the valuation report and issue the offer letter to you with an authorisation form (subject to a financial interview).

8. Financial Interview undertaken by our mortgage advisor to ensure affordability

9. You check the offer and complete the Staircasing Authorisation Form which requires the name and address of your solicitor, mortgage advisor and mortgage provider.

10. Instruct your solicitor

11. Contact your mortgage advisor or lender and apply for your mortgage

12. Return the Staircasing Authorisation form to Family Mosaic

13. Family Mosaic instruct our solicitors to send the legal packs to your solicitor

14. Your mortgage offer is issued. Send a copy to your solicitor to forward to Family Mosaic’s solicitor for approval.

15. Your solicitor completes the legal work and sets the completion date with our solicitors.

16. Family Mosaic issue the completion statement which breaks down the staircasing transaction and confirms rent, service charges and ground rent applicable after completion.

17. You complete the staircasing transaction before the three month expiry date of your valuation (failure to achieve the three month deadline will result in you having to pay for a new survey and the application process will have to start again).

18. Family Mosaic confirm your new rent and service charge payment.