Helping you buy more of your home

The rent you pay covers the share of your home that we still own. As you buy more shares, the amount of rent you pay will reduce.
 
Your lease explains how your rent is calculated and reviewed. Rent usually increases each year in line with the Retail Price Index (RPI), plus a percentage set out in your lease.

If you disagree with your rent or service charge, you can get independent advice from the Leasehold Advisory Service here.

The cost depends on your home’s current market value and the percentage share you want to buy.
 
We will need an up-to-date independent valuation before we can confirm the cost. Once you know the cost, you can decide whether you want to proceed.

You can ask to use a local valuer of your choice, but they must be RICS registered and must not be an estate agent. You must give us the valuer’s name, address and phone number before the valuation is carried out.
 
If you decide to go ahead, you will need to confirm how you will fund the purchase. For example, if you need a mortgage, you may want to speak to a financial adviser, mortgage broker or your current lender. We will need to see proof of funds, such as a mortgage agreement in principle.
 
Please note: We will only instruct our solicitors once you confirm you want to proceed and have provided proof of funds.

Tell the valuer about any improvements you've made with our written permission. If you are staircasing to 100%, the valuer should disregard these improvements when calculating the valuation.
 
Examples of improvements may include a new kitchen or bathroom, central heating, a loft conversion, double glazing or a conservatory. General repairs, maintenance and redecoration are not usually classed as improvements.
 
Please note: It is important for you to be aware that Shared Ownership leases state the property is to be maintained and kept in good repair and your valuation must reflect this.

No. You can often buy further shares in stages, depending on the terms of your lease. Some homes may also qualify for gradual staircasing, which allows you to buy smaller 1% shares each year without solicitor fees for those small increments.

More information is available here

This is a personal decision. Many people consider staircasing when they are looking to remortgage, for example at the end of a fixed-term mortgage deal. This may help avoid extra redemption fees linked to changing your mortgage part-way through an agreement. We would encourage you to seek your own independent financial advice.

Not always. Staircasing may be possible during a fixed mortgage term, but this depends on your mortgage terms. Speak to your lender or mortgage adviser before making a decision.

You will need to pay for a new valuation of your home. You do not have to continue with staircasing if the additional shares are unaffordable, but you will still need to pay for the valuation.

The valuation must be carried out by a Royal Institution of Chartered Surveyors (RICS) registered valuer. A mortgage valuation cannot be used because the valuation must be independent.

The valuation is usually valid for three months. If the purchase of your additional shares is not completed within this time, you may need to pay for a new valuation.

You should also consider:

• Legal or solicitor fees for the conveyancing work.
• Mortgage arrangement fees if you are remortgaging or borrowing more.
• Stamp Duty Land Tax if this applies to your purchase your Solicitor will advise you
• Midland Heart Administration fee

If you are selling your home at the same time as buying the remaining shares, you may also need to consider:

• Moving costs, such as removals.
• Taking final meter readings on completion day and updating your utility suppliers.
• Any relevant leasehold documents or fees, such as a leaseholder information pack or deed of covenant. Your solicitor will confirm what is needed.

Midland Heart pays our own solicitor fees unless extra fees are incurred during the staircasing process.

If you cancel your application or do not complete for any reason, you may need to pay our solicitor fees and/or cancellation fees.

We do not influence the valuation. If you disagree with it, you should appeal directly to the valuer (if you instructed them).

Contact the valuer in writing and include evidence of recent sales of similar homes in the same area. Explain how your evidence supports your appeal.

Please do not send the valuation report to us until you agree with it.

If you staircase to 100%, you will own your home outright and it will no longer be a shared ownership property.

You will no longer pay rent to Midland Heart. If there are communal areas or services, you may still need to pay a service charge.

More information is available here

The time it takes to buy more shares varies and is especially dependent on valuations, mortgage arrangements and legal work. But as a guide only, from all parties Solicitors being instructed we anticipate that the process will take around 12 weeks.

Things that can affect timescales include (not limited to):

• How quickly the valuer can inspect your home and write the report.
• How quickly your solicitor can progress the legal work.
• Whether your finance is arranged in good time.
• Whether your valuation expires before completion.
• Any changes to the share you want to buy after our solicitors have been instructed.

Please note: If your mortgage offer has an expiry date, please tell your solicitor as soon as possible, so they can help progress your staircasing before it expires (where possible).

We can offer advice while you are deciding whether staircasing is right for you.
 
If you have questions during the purchase of additional shares, contact your Homeownership Officer via homeownership@midlandheart.org.uk. If you are selling at the same time, contact your Resales Officer via resales@midlandheart.org.uk. Or you can call 0345 60 20 540 and speak to our Housing Advice Team.
 
Once you confirm you want to proceed and provide proof of funds, we will instruct our solicitors. After this, your solicitor is usually the best person to contact for updates.
 
If you have questions that we are best placed to answer, we will do our best to help. Please remember that we are not legally trained, so some questions will need to be answered by your solicitor.

After completion, you will receive a Memorandum of Staircasing confirming the purchase of additional shares, it is important that you keep this safe.

If your account is in credit, we will refund you within 28 days of receiving your bank details.

Shared ownership was designed to help people get onto the property ladder. Buying more shares can help you move towards owning 100% of your home.

We understand that plans and circumstances can change. If you do not buy more shares, you will continue to pay rent on the share of your home that we own.