Staircasing

How Staircasing is making housing easy and affordable

In the United Kingdom, everyone wants to buy a house of their own. However, it is not always possible to do so. Many things need to be considered, and the budget plays the spoiler role for most of the cases. However, if a buyer goes for shared ownership, then the process can become relatively affordable and accessible. The staircasing procedure further makes it easy for the buyer. However, what is shared ownership and what is staircasing? Here are the answers that can help you to get comfortable housing.

What is Shared Ownership?

Shared Ownership is the special housing scheme where a buyer can eventually buy portions of the house. So, if you are a buyer, you can buy 25% of the house and pay the rent for the remaining 75% to a housing association. This is one of the best options for the buyers who are lacking budget. The total amount of the purchase gets reduced, so does the deposit amount. You can pay the rent of the remaining house and own particular portion. The conveyancing and mortgage process of the shared ownership is same as the normal ownership. The shared ownership is generally provided by the housing association. However, how can you be the entire owner of the house? How is it different from the typical lease? Staircasing is the answer for all these.

What is Staricasing?

Even though you have taken a lease of some portion of the house, but you can eventually take more parts of the house. This is called Staircasing. Suppose, you have owned 25% of the house, and you have repaid the existing mortgage and arranged some money again for deposit. According to your budget, you can further increase your stake at the house. You can simply buy another 35% of the house again with the same process as earlier. So, you need to pay rent for the remaining 40% now, and you would own 60% of the house. This can be considered one staricasing. In the same way, you can own the entire 100% of the house through the staircasing process. It remains effective, easy, straightforward and affordable as well. However, the buyer must understand that only four staircasing is allowed for a house including the first purchase. So, after the first purchase, the buyer would be allowed to staircase three more times to own the entire house.

How it impacts the Mortgage?

The mortgage process of the staircasing is conventional and has no difference. The lender would visit the property and decide the mortgage amount. The conventional mortgage percentage of 80% is generally provided depending on the application for a mortgage, however. You can reapply for the mortgage once a mortgage has been closed and repaid.

The staircasing is considered one of the best policies in the UK for the housing and has helped many to own house for a long time.