You can Staircase at any time. As you buy more shares in your property, your rent will usually decrease. If you have a mortgage, your mortgage repayments will increase to cover any additional borrowing. If you want to buy an extra share, you must first get your home valued. We use this valuation to work out the price of the share.
Before you’re ready to purchase more of your home, there are a few things you should know.
Things to consider
What costs are involved?
- Your Valuer’s fee
- Mortgage arrangement fees to your lender, if this applies
- Your lender’s valuation fee, if this applies
- Your legal fees
- Our Staircasing administration fee
- The cost of the extra share
If you did not pay stamp duty on the full value of your home, you may need to pay extra stamp duty. We cannot help with questions about stamp duty. Your solicitor will answer these for you. In the case that you cancel your application, or do not complete for any reason, you’ll be required to pay our solicitors’ fees and/or cancellation fees, and our Staircasing fee will not be refundable.
What timescales do I need?
The time people take to buy more shares varies from around four weeks up to three months.
You need to consider the following:
- How soon can the Valuer value your property? (If they are busy, it could take two to three weeks for them to value and write the report on your home)
- How busy your solicitor is and if they are experienced with ‘Staircasing’ purchases
- Your valuation will only be valid for three months from the date of the report. If you have not completed buying the share by this time, you will have to get an updated valuation. We cannot extend your original valuation under any circumstances
- Delays in completing the purchase are normally due to problems arranging the finance or gathering legal documents – three months is plenty of time but make sure you send us the valuation and Staircasing Application Form straight away
- If you need to amend the share that you have initially told us you want to buy, and we have already instructed our solicitors, this will cause a delay that may result in you having to update your valuation. It will take us up to 5 working days to process this request to change the share that you will be buying and provide the updated memorandum and the new instruction to our solicitor.
To find out more about how to purchase a larger share of your home, take a look at Guinness Property’s Guide to Buying More of Your Home.