Shared Ownership Staircasing Explained 🏡

The term Staircasing is used when you increase the share in the home i.e. when buying a percentage amount from the Housing Association that owns the other share part.

Given you pay rent on the percentage that you don't own, you will find that by increasing your share, the amount of rent you pay will be reduced.

It's worth noting that the price you pay for an increase will be at the new, open market value of the property - not at the original price that property was purchased for.

E.g. if you bought a 25% share of a £400K property five years ago, and are now buying an additional 10%, then you would need to pay £50K, if the value is now £500K, to increase your share from 25% to 35%.
In this example, the amount of rent you pay would decrease from 75% to 65%, that the Housing Association now owns.

____

CheckMyFile.com

Get your free credit file data, today.

Check your credit file before applying, whether you're a first-time buyer or remortgaging. CheckMyFile provides the data used by the three main credit reference agencies - the same agencies that lenders use to check your score. It includes Equifax, Experian, and Transunion.

They offer a 30-day free trial, after which it becomes £14.99 a month. You can cancel at any time. We recommend you subscribe, download your file, then cancel your subscription.

https://www.checkmyfile.com/credit-report.htm?ref=mattmoore3&cbap=1
CheckMyFile.com is a third party site. If you use their services, we may receive a small fee from them.
_____

Q&A for First Time Buyers
For further information and Q&A, go to https://ExplainMortgages.com

Includes: Q&A sections on:
- Buying Process
- Mortgages
- Mortgage Process
- Property
- Protection
- Getting Help

______

Explain Mortgages is a trading style of The Right Broker Limited, an appointed representative of The Right Mortgage Limited, which is authorised and regulated by the Financial Conduct Authority. The Right Mortgage Limited. Registered address: St Johns Court, 70 St Johns Close, Knowle, Solihull, B93 0NH. Registered in England and Wales. Company No. 08130498.

No fee is payable for our service in relation to mortgage or insurance contracts, as we get paid commission by the lenders/ insurers.

Your home (or property) may be repossessed if you do not keep up repayments on your mortgage.

These videos are not intended to provide professional mortgage advice and should not be relied upon or regarded as a substitute for such advice. The information contained within each video is for illustrative and information only. Information is aimed at UK consumers only. We recommend that you seek advice from a qualified professional mortgage advisor before acting on any information or other content appearing within these videos.