It is possible to buy further shares in your property after living in your house for a certain period via the staircase. This process enables buyers to own a more significant proportion of your property. A high share means you will pay less rent and become an outright owner.
The leading advantage of staircasing is a buyers will own a more significant portion of their property and pay less. This makes the buyer gain more from a property value increase and build more equity. Buyers might also be able to secure mortgages at low interest, enabling them to buy extra shares in their homes. Click the following link for more information moathomes.co.uk/county/Sussex.
How Staircasing Works
Buyers should contact their “landlord” when they decide to increase their home’s shares. Also, consider contacting a mortgage broker to get the extra share funds. There are two common ways of raising funds, and below, we discuss them.
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Further Advance
Your current mortgage lender might be able to advance the money you require to increase the house’s value. They must value your home to determine if there is enough equity, and buyers usually pay the valuation fee. The lender will want to see your earnings proof to conduct an affordability assessment.
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Remortgage
Buyers should consider moving their mortgage to other lenders when they want to fund staircasing using extra money. A remortgage enables buyers to apply for bigger loans with new lenders, meaning they can repay it to their existing lender.
How Are The Share’s Costs Determined?
After contacting your housing provider to request a staircase, buyers must obtain their property’s valuation as it determines the price of the additional shares being bought.
Finding A Surveyor
A qualified surveyor should carry out your property’s new valuation. A qualified surveyor should be a member of the Institute of charted surveyors. Working with a qualified expert is essential, or the valuation will not be valid.
After choosing a surveyor, buyers should call their housing association to authenticate the client’s terms. Consider asking the surveyor to disregard a property valuation increase due to home improvements you did. This prevents you from paying for the added value of improvements you already cleared.
What Other Costs Are Included When Staircasing?
There are many costs involved in the staircasing process, and the owner is expected to meet all. Homeowners should cover the cost of surveying their property and other additional fees. The valuation lasts for three months, and owners should finalize the staircasing process within that time.
Must I Staircase?
The answer is no. Homeowners do not have to staircase their property if they do not want to. Research has shown that only ten percent of people in shared ownership properties decide to a staircase.
Most occupants find the financial costs and hassle of staircasing challenging and prefer to proceed with the initial agreement. These occupants also view shared ownership as a better option than buying.
Final Thoughts
Staircasing is a common term in the property world and has many benefits, The above article has outlined the complete staircasing guide, and you can reach out for more information.
