1. Instruct a valuer
The Valuation
Your valuation needs to be done by a valuer who is a member of the Royal Institution of Chartered Surveyors (RICS). Please note an estate agent, bank or building society valuation is not classed as an independent valuation and will not be accepted.
The valuer will ask you about your rent, service charges and improvements you have made to your home. They will then separately assess any improvements you have made to your home.
You must have asked our permission before making any improvements. Improvements made without our permission may not be considered when you come to staircase and the valuation should be based on the property having been maintained.
The price will be a percentage of the full market value. For example, if the full value of your home is £200,000 and you want to buy the remaining 50%, the cost will be: £200,000 x 50% = £100,000.
The valuer will send you their report and invoice you directly.
Improvements
The price of the share you're buying will be a percentage of the value without the improvements, as shown in the following example.
The full value of your home is £203,000. This includes £3,000 of improvements you have made. The value without your improvements is £200,000 (£203,000 minus the £3,000 of improvements). This is known as the 'net value'. If you own a 50% share and want to buy the remaining share, the price will be 50% of the net value. That is, £200,000 x 50% = £100,000.
Not all improvements add value. Carpets, curtains and furniture which haven't been fitted do not count as improvements. Some improvements may fall in value due to wear and tear. The valuer must list the improvements on the report, so make sure you're clear what should be included.
2. Arrange finances to buy the extra share
We recommend that you speak to your current lender or an independent financial advisor (IFA) when deciding on the size of share that you can afford and to see how much money you will be able to borrow.
3. Decide which size share you are able to buy
The extra shares come in certain sized 'chunks' set out in your lease, usually 20% or 25%.
The minimum amount you can buy is 10% and then by 5% i.e. 10%, 15%, 20%, 25% and so on.
Please be aware that some of our homes cannot be bought outright. On a limited number of developments you will only be able to buy a share up to 70%, 75%, 80% or 95%.
Your lease includes information about staircasing restrictions, if there are any.
If you did not pay stamp duty on the full value of your home, you may need to pay additional stamp duty. We cannot advise on stamp duty but your solicitor should be able to answer any questions for you.
4. Choose and instruct a solicitor
You'll need to use a solicitor when you buy an extra share in your home. Some people prefer to use the solicitor who dealt with their original purchase — they should have easier access to information about your property. Others are solicitors commended by their mortgage lender. We need the details of your solicitor before you can go ahead with staircasing.
5. Send us your staircasing instructions
You'll need to fill out the staircasing instruction form and send this in to us with a copy of your valuation and details of your solicitor. You can post this to us or email it to: resales@plumlife.co.uk. Please send all your documents at the same time. We won't be able to start processing your application until we have the staircasing instruction form, the up-to-date valuation and your solicitor’s details.
Keep in mind:
- Your valuation is valid for three months. If this expires before you complete your purchase you will need to pay for an updated valuation.
- You must arrange finances quickly, including the mortgage, as this can take several weeks
- Ideally, you should choose a solicitor that is familiar with staircasing. If you change solicitors during the process, this will slow the completion and may result in you needing an updated valuation.
- If for any reason you decide not to proceed with the purchase of more shares in your home, after we instruct the solicitors, you'll need to pay our solicitors' fees.
So what happens next?
- We'll write to our solicitor and your solicitor with the details of the transaction
- Our solicitor will send out the legal paperwork to your solicitor and to us for signing
- Once the legal paperwork has been completed and your funds are ready, your solicitor will arrange a date to complete the purchase of your extra share
- Our solicitor will ask us to check if you owe any rent — we'll collect any amounts when the purchase is completed
- Please note that if you pay your service charges directly to a managing agent, you will need to get an up to date statement of account to show that there are no arrears. Your solicitor will then pass this on to our solicitor. We'll not be able to complete without this. You'll need to pay the whole service charge demand in advance, even if this has just been added to your account.
- After the purchase is completed, we will amend your rent account according to your new share, or end your tenancy (if this applies).
- If you're buying 100% of your property, your solicitor needs to arrange to transfer the title into your name for leasehold properties. If we are not the freeholder of your property, you will need to contact whoever is and arrange to pay service charges to them direct.
1. Instruct a valuer
The Valuation
Your valuation needs to be done by a valuer who is a member of the Royal Institution of Chartered Surveyors (RICS). Please note an estate agent, bank or building society valuation is not classed as an independent valuation and will not be accepted.
The valuer will ask you about your rent, service charges and improvements you have made to your home. They will then separately assess any improvements you have made to your home.
You must have asked our permission before making any improvements. Improvements made without our permission may not be considered when you come to staircase and the valuation should be based on the property having been maintained.
The price will be a percentage of the full market value. For example, if the full value of your home is £200,000 and you want to buy the remaining 50%, the cost will be: £200,000 x 50% = £100,000.
The valuer will send you their report and invoice you directly.
Improvements
The price of the share you're buying will be a percentage of the value without the improvements, as shown in the following example.
The full value of your home is £203,000. This includes £3,000 of improvements you have made. The value without your improvements is £200,000 (£203,000 minus the £3,000 of improvements). This is known as the 'net value'. If you own a 50% share and want to buy the remaining share, the price will be 50% of the net value. That is, £200,000 x 50% = £100,000.
Not all improvements add value. Carpets, curtains and furniture which haven't been fitted do not count as improvements. Some improvements may fall in value due to wear and tear. The valuer must list the improvements on the report, so make sure you're clear what should be included.
2. Arrange finances to buy the extra share
We recommend that you speak to your current lender or an independent financial advisor (IFA) when deciding on the size of share that you can afford and to see how much money you will be able to borrow.
3. Decide which size share you are able to buy
The extra shares come in certain sized 'chunks' set out in your lease, usually 20% or 25%.
The minimum amount you can buy is 10% and then by 5% i.e. 10%, 15%, 20%, 25% and so on.
Please be aware that some of our homes cannot be bought outright. On a limited number of developments you will only be able to buy a share up to 70%, 75%, 80% or 95%.
Your lease includes information about staircasing restrictions, if there are any.
If you did not pay stamp duty on the full value of your home, you may need to pay additional stamp duty. We cannot advise on stamp duty but your solicitor should be able to answer any questions for you.
4. Choose and instruct a solicitor
You'll need to use a solicitor when you buy an extra share in your home. Some people prefer to use the solicitor who dealt with their original purchase — they should have easier access to information about your property. Others are solicitors commended by their mortgage lender. We need the details of your solicitor before you can go ahead with staircasing.
5. Send us your staircasing instructions
You'll need to fill out the staircasing instruction form and send this in to us with a copy of your valuation and details of your solicitor. You can post this to us or email it to: resales@plumlife.co.uk. Please send all your documents at the same time. We won't be able to start processing your application until we have the staircasing instruction form, the up-to-date valuation and your solicitor’s details.
Keep in mind:
- Your valuation is valid for three months. If this expires before you complete your purchase you will need to pay for an updated valuation.
- You must arrange finances quickly, including the mortgage, as this can take several weeks
- Ideally, you should choose a solicitor that is familiar with staircasing. If you change solicitors during the process, this will slow the completion and may result in you needing an updated valuation.
- If for any reason you decide not to proceed with the purchase of more shares in your home, after we instruct the solicitors, you'll need to pay our solicitors' fees.
So what happens next?
- We'll write to our solicitor and your solicitor with the details of the transaction
- Our solicitor will send out the legal paperwork to your solicitor and to us for signing
- Once the legal paperwork has been completed and your funds are ready, your solicitor will arrange a date to complete the purchase of your extra share
- Our solicitor will ask us to check if you owe any rent — we'll collect any amounts when the purchase is completed
- Please note that if you pay your service charges directly to a managing agent, you will need to get an up to date statement of account to show that there are no arrears. Your solicitor will then pass this on to our solicitor. We'll not be able to complete without this. You'll need to pay the whole service charge demand in advance, even if this has just been added to your account.
- After the purchase is completed, we will amend your rent account according to your new share, or end your tenancy (if this applies).
- If you're buying 100% of your property, your solicitor needs to arrange to transfer the title into your name for leasehold properties. If we are not the freeholder of your property, you will need to contact whoever is and arrange to pay service charges to them direct.
