Staircasing
What is staircasing?
Staircasing is the term used to describe how you as a shared owner increase your equity in your home. The larger share of your home that you own, the less rent that you pay to Auxesia.
The cost of purchasing additional shares in your home is determined by its market value at the time of staircasing, which may have increased or decreased since you first moved in, and this value is assessed by an independent RICS surveyor. There are some costs associated with staircasing, such as valuation and solicitor fees.
Once you achieve full ownership, you will own the property outright and will no longer be a shared owner. At this point, you will no longer pay rent to Auxesia, though you may continue to pay the service charge and may also need to cover an annual ground rent if applicable.
What are the benefits of staircasing?
There can be several benefits to staircasing:
- Reduce the amount of rent you are paying to Auxesia each month
- If your property value is increasing over time, the earlier your staircase, the more the value of your equity ownership will increase
- If you reach 100%, you become a full homeowner will all of the rights that come with this status!
Staircasing with Stairpay
Staircasing is the process by which shared owners purchase more of their home.
We have partnered with Stairpay to make this process as simple as possible for our residents.
Sign up to their platform to gain access to tools and guides that help you make decisions about your shared ownership property. By creating a profile, you will be able to manage your staircasing transactions, build savings plans for the future, and monitor your house price and costs over time.
It takes 5 minutes to sign up and is a great way to educate yourself about the potential benefits of staircasing.
Can you afford to staircase?
To get an indicative answer, you can access our Stairpay staircasing calculator here.
Step-by-step guide to staircasing
1. Sign Up to Stairpay
Stairpay simplifies the staircasing process and provides support by answering questions and offering guidance.
2. Assess Financial Viability
Use the Stairpay calculator to quickly determine if you're in a position to staircase right now.
3. Inform Auxesia
Let us know your intent to staircase and the percentage you'd like to purchase. This can be adjusted later, but starting an application on Stairpay is the easiest way to notify us.
4. Speak to a Mortgage Broker
Consult with a mortgage broker to assess how much you can borrow. You can arrange this through Stairpay.
5. Get a Property Valuation
Hire a surveyor to value your property. This valuation will confirm how much of your mortgage in principle can be applied. The valuation can be requested via Stairpay.
6. Finalise Share Decision
Decide on the percentage you wish to staircase (usually in 10% increments). If stamp duty applies, consult your solicitor for advice.
7. Choose a Solicitor
Select a solicitor to manage the transaction. It's best to use someone experienced with staircasing, ideally the solicitor from your initial purchase.
8. Finalise the Transaction
Complete the staircasing process with the necessary legal and financial steps, and enjoy owning a larger share of your home.
If you prefer to staircase without Stairpay for any reason please just drop us an email at staircasing@auxesiahomes.co.uk
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