Can You Buy More Shares?

If your lease permits, you can buy more shares in your shared ownership property. This is called staircasing and in most cases, you can staircase up to outright ownership (100%). This would be subject to the terms of your lease. Speak to a member of our team and we can check this for you.

Understand how staircasing works with our guide here.

Key Considerations When Buying More Shares in Shared Ownership

There are things to consider when buying additional shares in your shared ownership home. These include the percentage of shares you wish to buy, the associated costs, and the effect on your rental payments. Typically, you can buy shares of 10% or more at any time, and although through the new shared ownership model, you can purchase 1% shares on your home, some leases might require a minimum of 25%. The price of new shares is based on the current market value of the property at the time of purchase.

To ensure you understand the process, our team can explain what is required of you and will make sure you understand the staircasing process and how it can affect your ownership of your shared ownership home.  As you increase your ownership percentage, you’ll pay less rent. However, buying additional shares involves additional costs, which are explained below. 

You’ll make a more informed decision by understanding the following areas:

• Financial planning

• Property valuations

• The long-term considerations of staircasing -  if you buy additional shares and own a higher than average share (above 50%), the remaining shares may be harder to sell upon a resale due to affordability, so it is something to be aware of.

Each of these aspects plays a role in determining whether buying more shares is the right move for you.

Benefits To Consider When Buying More Shares

There are many benefits to buying more shares of your home, one being that you’ll own more of your property but there are additional benefits, laid out below that can help you make an informed decision. 

Buying more shares in increments offers several long-term benefits including:

• If you staircase to 100%, you'll have the freedom to sell the property on the open market without buyer restriction 

• The ability to maximise profit from major home improvements

• Ensuring that your investment yields the best possible returns

Understanding these benefits can help you weigh the advantages of buying more shares and decide if they align with your financial goals.

Summary

In summary, you can buy more shares for your shared ownership property.  Assessing your budget, understanding the valuation and staircasing process as well as being aware of legal restrictions, and considering the long-term benefits are all essential steps in making an informed decision.

Taking the time to understand these aspects and reading through the guides written by our experts will empower you to make choices that best suit your financial situation and home buying goals. Whether you choose to buy a small percentage each year or take larger steps towards full ownership, the journey of buying more shares can be rewarding, offering increased stability and investment potential.

Increasing ownership also allows for a lower rent payment - the more shares in a property you own, the smaller the share of the property you are renting from us at Aster.

Find out more about shared ownership below  

Our website also has an FAQ page full of useful information to help you make an informed decision. Alternatively, you can contact us directly and one of our experienced team members will be more than happy to assist. 

Frequently Asked Questions

What is the minimum share I can buy of my shared ownership home?

You can usually buy shares, starting with a 25% minimum share on a property, through the older shared ownership model. With the new shared ownership model you can purchase shares with a minimum 10% share and purchase more shares when you can. 

Find out more about the shares you can buy and if you have to buy the share advertised.

Are there any fees involved in staircasing?

Yes, purchasing additional shares incurs costs such as legal fees, valuation expenses, and administration fees charged by the landlord. These fees should be considered when planning to staircase.

Who are Aster?

At Aster, we're proud to offer beautiful new shared ownership homes across the South of England as well as London. Our homes are perfect for those looking to make a great start on the property ladder and take advantage of all that this incredible area has to offer. 

Our aim at Aster is to find you a home, not just a house – and with shared ownership, you can find a home in a lovely location that may otherwise be out of your reach, just get in touch!

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