Staircasing
If you currently share the ownership of your home with Muir Group, you may wish to buy another share of your property or even buy it outright. This is called staircasing.
You can either buy another 25% share, for example to increase the percentage you own from 50% to 75%, or you may buy all of the outstanding shares to own 100% of the lease. Shared ownership leases issued after July 2004 more shares in 10% tranches. Please note that some leases do not allow you to purchase all the shares in your home. Please check with Muir Group for confirmation.
You, your solicitor and Muir Group must take the steps outlined below:
1) You should contact Helen Leek on 0300 123 1222, Leasehold & Central Services Assistant Manager, Muir Group HA Ltd, Old Government House, Dee Hills Park, Chester, CH3 5AR, in the first instance. She will tell you how to proceed.
2) If you are considering ‘staircasing’ then you should find out from your building society or bank whether they are willing to lend you a further amount of mortgage. The amount you borrow will help determine the size of the further share, which you may be able to buy. If you decide to change mortgage companies, you should beware of any ‘redemption’ penalties you may have to pay.
3) You should appoint a solicitor to act for you. It is important that you have a legal representative, as the documentation involved is complex.
4) a) Upon receiving written notification of your intention to purchase further shares, Muir Group will instruct a valuer. The valuer will be an independent qualified (RICS) valuer agreed between Muir Group and yourself. You may provide the name of another valuer, provided that Muir Group agrees. Please confirm their name and address if you wish Muir Group to instruct them. All valuations must be addressed to Muir Group Housing Association Limited, and you will be liable for the valuation fee.
An estate agent’s valuation is not acceptable, nor is the valuation provided by your bank or building society, as this is principally for mortgage purposes and is not classed as an independent valuation for purchasing further shares.
4) b) The agreed valuer will confirm the market value of your property, as the cost of purchasing any further shares in your house is based on this figure. The valuer will disregard any improvements you have made since moving into your property, or any improvements undertaken by previous occupants. Improvements could include the installation of double glazing, central heating or the building of an extension. Muir'’s approval should be obtained before any improvements are carried out.
5) Within 7 days of Muir Group receiving notification of the valuation, you will be informed of the current market value of your home and the cost of purchasing a further share.
6) You have up to three months from the date of the valuation to complete the purchase. After three months the valuation is no longer valid. If you decide to continue, a new valuation will be necessary and you will have to pay a further valuation fee. This timescale is not negotiable.
7) Once you have been notified of the valuation and the purchase price of your further share, and have decided that you wish to proceed, you must notify Muir in writing of your intention to continue your ‘staircasing’ and provide details of your solicitor.
8) In purchasing a further share, as well as the valuation fee, you will have to pay: • Your solicitor’s fees • A valuation fee to the bank or building society should they decide to revalue the property.
9) When you purchase the remaining share in your property you will, generally after 3 months, be granted the freehold / 100% leasehold interest in your property, in accordance with the terms of the lease. Your solicitor should advise you on the terms of the lease. In addition, in some circumstances there may still be a service charge payable. (Please note that some leases only allow restricted staircasing to a maximum of, for example, 80% of equity).