Staircasing - Purchasing a Larger Share

Your lease may give you the right to buy an additional share in your home and therefore move from your initial share to full ownership in a number of stages by buying further shares as and when you can afford them. This process is called 'staircasing'.

You may purchase more equity of the property by increasing your share, usually from 50% to either 75% or 100% when you will reach full ownership. Before you embark on 'staircasing' you should contact a member of Plumlife staff to discuss the process in more detail. Normally the lease does not allow the first purchaser of a shared ownership property to purchase an extra percentage in the first 12 months. Subsequent leaseholders need to have been in residence for at least three months before being able to buy additional shares. It is important that you refer to your lease to clarify the position regarding your own property.

In the first instance you must serve notice on Plumlife in writing that you wish to purchase an additional percentage of the property. The property must be revalued and its open market value assessed as at the date on which Plumlife receives your notice. The cost of the share you have requested to buy will be the appropriate percentage of the market value. It should also be borne in mind that you will be responsible for the cost of valuation, legal fees and mortgage arrangements.

You are responsible for getting the property valued by a Qualified Chartered Surveyor. This valuation is only valid for a period of three months after which time a new valuation must be provided by the shared owner. The reason that a time period is placed upon the valuation is due to the fact that prices may change during that time.

The independent valuer is requested to provide an open market value of the property, ignoring such items as carpets and curtains, together with any improvements which may have been carried out by the shared owner. You should approach your building society or bank who provided the mortgage for your initial share to arrange a further mortgage. Once you have purchased an additional share your rent will be reduced to reflect the fact that you own a larger share in your home.

If you are buying a house where the Plumlife owns the freehold, once you have acquired 100% of the shares of the equity in the property then you are entitled to have the freehold transferred to you and you will become the full owner of the house. If you are buying a flat, once you have 'staircased' to 100% ownership, various provisions of the lease will cease to apply to you. Again you should refer to your own lease for further information in this respect. Residents of flats will continue to be responsible for the payment of any service charge.