Buying More Shares
If you live in a shared ownership or leasehold retirement property you may have the option to increase the share of the property which you own. This process is called "Staircasing".
Shared owners of leasehold retirement schemes can normally purchase up to 75% of the full market value and other shared owners can usually purchase up to 100% of the full market value in multiples of 25%.
The procedure for staircasing is relatively straightforward.
- The leaseholder must serve notice upon ‘Johnnie’ Johnson Housing stating the percentage they intend to purchase.
- "Johnnie" Johnson Housing Trust will obtain a valuation, at the date of the above notice, and notify this to the owner within 21 days.
- The valuation will disregard any improvements made by the owner.
- The leaseholder may choose to obtain an alternative independent valuation if they do not agree with the initial valuation.
- The value must be agreed with "Johnnie" Johnson Housing Trust.
- The valuation will be binding on both parties.
- The leaseholder is responsible for all valuation costs, even if the staircasing transaction does not proceed.
- "Johnnie" Johnson Housing Trust will advise the owner of the sum payable for additional shares in the property and the revised rent which would be payable upon the purchase of additional shares.
- Upon receipt of the valuation the owner may, at any time within 3 months, pay us a sum equal to the share being purchased.
- Apart from the valuation fees, which are the owners responsibility, each party is responsible for meeting their own legal costs associated with the staircasing process.
- At completion the owner will also be responsible for paying any arrears of rent and service charges, valuation fees and any other outstanding amounts due to us.
- Upon completion of the staircasing we will notify the leaseholder of the new rent payment, which will apply.
- The leaseholder will be responsible for completing the Memorandum of Staircasing annexed to the original lease, which we hold with the solicitor.
