How to increase your shares
What is staircasing?
When you have lived in your home for a certain period of time as the shared owner, you can decide to buy more shares. This is often called ‘staircasing’. If you bought a resale property you can also buy further shares.
The more shares you buy, the less rent you pay.
How many shares can I buy?
- Your lease will confirm how many shares you can buy. Most leases allow you to buy up to 100% of the property.
- If you staircase to 100% you become an outright owner, and you will no longer need to pay rent: you may still, however, need to pay service charges for any shared areas and building insurance.
- Depending on your lease, there may be restrictions on the total percentage you can purchase, or on the size of share you can buy in any one transaction.
- If you are thinking about buying more shares in your property, it’s best to do this when you’re in a position to afford them.
Get in touch
- It’s a good idea to talk to your lender first about increasing the size of your mortgage. This will give you the money to purchase more shares in your home.
- Then get in touch with our sales team – via sales@brighterplaces.co.uk and let us know that you would like to increase your share in your home.
What you need to know
- We will explain what you need to do and take you through the process step by step. This includes giving you information about getting a Royal Chartered Institute of Surveyors (RICS) valuation as well as a copy of your Energy Performance Certificate (EPC).
- We will explain your responsibilities and the administration fee charged by Brighter Places, and answer any questions you may have.
Next steps
- Once you have received your valuation report, if you want to go ahead complete a ‘notice of intention to buy further shares’ form and send this to us with a copy of your valuation. The valuation will last for 3 months from the date the valuation was carried out it.
- You have 3 months from the date the valuation was carried out to buy your shares.
- You will need to instruct a solicitor to act on your behalf once you’ve received confirmation that you are eligible to buy further shares from us. Let us know your solicitor’s details as soon as possible.
- We will also instruct our solicitor and the legal paperwork will be handled between both parties solicitors.
Completion
- If you are buying all the shares in a flat then you will be a leaseholder but own 100% of the leasehold interest in the property. You will no longer pay rent to us, and will need to source your own buildings insurance.
- If you are buying all the shares in a house then you usually become the freeholder of the property and own it outright. You will no longer pay rent to us, and will need to source your own buildings insurance.
Charges that will apply
- If you pay service charges or ground rent now, you will continue to pay these after you have bought more shares in your apartment or house. You may also still be required to pay into your Sinking Fund (also known as a Reserve Fund). This is a reserve of money which is built up over a period of time to fund substantial planned works for communal parts of the property. This might be used for work such as resurfacing of the communal car park or essential works to the roof of the block of flats you live in.
- Shared owners do not pay ground rent, but this might be a new charge that you become responsible for once you have purchased 100% of the leasehold or freehold.
Fees
You are responsible for paying the following:
- RICS valuation fee
- Energy Performance Certificate (EPC) cost
- Brighter Places administration fee, if your lease says so
- Your own solicitor fees.
This information is correct at the time of publication but may be subject to change. Please ask your sales adviser for further information, or email sales@brighterplaces.co.uk