One of the key benefits of purchasing a Shared Ownership home – in addition to only needing a small deposit – is the ability to ‘staircase’ your way to full ownership (meaning homeowners can buy additional shares in the property at their own pace). At Picket Twenty in Andover, homebuyers Ewa and husband Alex share how easy this was for them.
When Ewa and Alex first bought their three-bedroom family home through us, they had no idea how long it might take for them to staircase to 100% ownership. But, following the simple steps on our website made the process straightforward.
The start of their home ownership story
Back in 2013, Ewa and factory supervisor Alex - both in their thirties - felt stuck renting and were determined to buy a home for themselves, their two young children (ages 10 and 3 at the time) and their family dog Nala! Ewa explains:
“I researched on the Government website to see what options might be available to us. At this time there were two new developments being built in Andover that I passed daily on my way to work and eventually we found some time to go in and meet the Sales team. It was then that we were signposted to SNG’s Shared Ownership properties.”
The family had been struggling to save a deposit for a house and couldn’t afford to purchase one with the mortgage products available at the time - discovering Shared Ownership changed everything. Ewa and Alex were able to buy a 50% share of a three-bedroom semi-detached house at Picket Twenty with their deposit of £10,000. Under the Shared Ownership arrangement, they paid £700 per month for their mortgage and £400 per month to cover their rent and service charge.
Taking the next steps to own their home outright
Having bought their original 50% share in 2013, Ewa and Alex first looked at increasing their ownership percentage as Covid-related restrictions began to ease. However, a friend of Ewa’s, who worked in the housing industry, suggested the couple wait a couple of years, as house prices were expected to fall. It turned out to be good advice, as Alex recalls:
“It was the best thing we could have done. The two-year wait paid off, as house prices decreased considerably. Now, we have been able to move ahead with purchasing the remaining 50% of our home.”
The process began
The family engaged a RICS-approved surveyor to value their home. After that, there was a simple process for obtaining housing association approval, which progressed smoothly. The couple also had to pay around £1,800 to their solicitor and a small fee for a certificate from their estate management company. Stamp Duty costs must also be considered when staircasing, which will be decided depending on the current value of the property and the percentage share being purchased. For Ewa and Alex, the entire process cost under £2,500.
Ewa and Alex now own their home outright, paying £1,400 per month for their mortgage.
“We are paying around £300 per month more now, but we were keen to own our home fully, so it is definitely worth it,” comments Ewa. “The staircasing process with SNG was so efficient and they were very helpful with answering our questions. It took exactly three months for us to move from 50% ownership to 100%.”
Having a good solicitor and trusted mortgage advisor proved to be very helpful during the staircasing process. Ewa and Alex initially thought that they could only afford to staircase their ownership from 50% to 80%. However, their mortgage advisor guided them through what was actually affordable and supported them to staircase from 50% to 100% in a single step. The couple opted for a five-year, fixed rate mortgage to provide them with security and clarity over their monthly costs for the foreseeable future. Alex comments:
“We’re going to be here for a long time. We love the house and the garden – it’s our home and we’re very settled. Owning it outright is a great feeling, and the staircasing process was straightforward. Being able to progress at our own pace meant we could grow our share of ownership in line with our circumstances. It’s a very empowering way to buy a property.”
If you would like to find out more about Shared Ownership, click here.