THAMES VALLEY HOUSING 100 % 85 % STEP UP! HOW TO PURCHASE MORE SHARES OF YOUR HOME 70 % 60 % 40 %

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1 THAMES VALLEY HOUSING 100 % 85 % STEP UP! HOW TO PURCHASE MORE SHARES OF YOUR HOME 70 % 60 % %

2 1 T: E: TAKE THE NEXT STEP IN HOME OWNERSHIP Now you ve got onto the property ladder through shared ownership, we want to help you take the next step. The good news is that you can stay in your current home and simply buy a larger share through a process called Staircasing * (it s a strange word, but we re working on it). Increase your share, reduce your rent By buying a larger share of your home, you could benefit more from any increase in the future value of your home and reduce the amount of rent you have to pay to us. Just like your original purchase, the scheme is flexible to suit your goals as well as your budget. Staircasing is simple In this guide we ll tell you about the process in plain English by that we mean clear and specific no jargon ok, maybe a little, but we ll insert a * whenever this happens and an explanation at the end of this guide. You ve probably got loads of questions, but the good news is we ve got loads of answers we re not going to put them all here as we know you re busy and you probably want to skip to the good bits! Plus we re always on the end of the phone. 100 % GO TO FORM > 100 % 1

3 Step up! How to purchase more shares of your home 2 STEP UP! 00 % Why should I buy a bigger share of my home? You dipped your toes in the water when you made the step towards buying your home. You ve settled in and might be thinking you d really like to own more or even your entire home and there are lots of great reasons why you should. When can I buy more of my home? Your lease* will tell you when you can buy more shares, but generally you are free to do this when you are ready. Events that might make you think about buying more shares could be If the value of your home has gone up since you bought it. You may be able to borrow more equity to buy additional shares. New job with larger salary yippee! Pay rise at current job? well done you! Maybe even a handsome bonus you ve earned it spend it wisely. You may have come into some money through an inheritance, or some of your investments may have matured! Even without any of the above good fortune it may still be possible for you to buy more shares. For instance your current mortgage deal may be coming to an end and you re looking to re-mortgage* a chat with your lender or an independent financial adviser may reveal that you can afford to buy more shares in your home.

4 3 T: E: WHAT COSTS ARE INVOLVED WHEN BUYING MORE SHARES? The main cost will be the price of the share which is based on the current market value of your home; you will also need to pay for the following: The RICS* valuation report Your solicitor fees Fees associated with arranging additional borrowing from your lender Stamp duty* in some instances you may need to pay stamp duty. Your solicitor will advise you if this is the case. HOW CAN I BUY MORE SHARES? So we ve told you when and why, you probably want to know how. Step 1 It s a good idea to find out how much your home is worth. There s a number of ways you can do this; have a look at some websites such as rightmove.co.uk or zoopla.co.uk, you may find similar size properties near to where you live. Estate agents often provide free property assessments to give you an idea of approximate valuation. Step 2 If you do need to borrow more money from your lender, or think you might want to switch lender we suggest you speak to them now to find out whether you can borrow more and how much this will cost. 3 STEP UP! Step 3 You should now have a clearer idea on whether you are able to buy more shares and just need to make your decision to go ahead 1

5 Step up! How to purchase more shares of your home 4 2 READY TO GO GO GO? You will need to: 1 Instruct a valuer to prepare a valuation report for staircasing purposes. You can pay the valuer directly and they will send us a copy of the report. You may use a valuer of your choice however, they must be RICS* qualified. Details of valuers can be found at the end of this brochure. 2 If you have carried out significant improvements* to your home you will need to provide details to the valuer to consider if these have added any material value to the property. 3 Read our offer letter, then complete and return the Acceptance of Offer form found at the back of this brochure. We ll need details of your solicitors so we can let them know about the transaction and provide them with details of our solicitors so the legal work can be completed. 4 Make sure your purchase completes within 3 months of the date of your valuation. If this lapses you will need to have a desktop valuation* carried out before we can agree a completion date and you will need to pay for this. 5 Ensure your mortgage funds are available on completion. We will: 1 Check the valuation report and calculate how much it will cost you to purchase more shares. We ll send you a letter with the details and what you need to do next to proceed. 2 We will check the improvements and confirm the figure to be deducted from the overall value. 3 Check your Acceptance of Offer form is fully completed and instruct our solicitors to prepare all the necessary legal paperwork and agree a completion date. 4 Respond to enquiries raised by your solicitors and provide a completion statement setting out the final amount to buy additional shares and settle any outstanding balance on your rent/service charge account. 5 Amend/cancel your direct debit and send you confirmation of the new rent and service charge payment where applicable.

6 5 T: E: FAQs What is the minimum share I can buy? You can buy more shares up to a maximum of three times. The minimum share you can buy is 10% and then multiples of 5% e.g. 10%, 15%, 20% etc. If you are not purchasing up to 100%, the maximum amount of shares you can own is 85%, leaving 15% in TVHA s ownership. What will happen after I have bought 100% of the property? You will no longer be required to pay rent to TVHA for your property; however there may still be ground rent and/or a service charge payable. Our Leasehold Team will be able to confirm this for you. Depending on your lease, the freehold may be transferred to you when you own 100% of the property. If within three months of staircasing you sell your home for a higher price than the valuation, we may be able to claim back some of the additional profit you make. Some leases give TVHA the right of first refusal if the property is sold; this is referred to as the pre-emption clause. Your solicitor will be able to confirm this for you, but TVHA is currently not exercising this right. How long does the whole process take? Once we have received your Acceptance of Offer and instructed our solicitors, the process usually takes 6-8 weeks to complete. *JARGON TO PLAIN ENGLISH Staircasing buying more shares in your home, starting with a minimum of 10% of the current value. Lease an important document both parties signed when you purchased your home. It sets out the dos & don ts of owning a shared ownership home. Remortgage when you want a better deal on your mortgage, or borrow more money secured against your home. RICS Royal Institution of Chartered Surveyors many years of study & rigorous training! Desktop valuation a reconfirmation of the value of your property. This will not require a re-visit but is carried out using information obtained from research on the current property market activity. If the value of your property has changed, we will need to issue a revised offer to you. Stamp duty a property tax charged by the government when you buy a home in the UK over a certain price not to be confused with stamp collectors. Improvements structural changes to the fabric of your property which may add value to your home. Remember this will not be the actual cost of improvements. These may include adding a conservatory or garage, installing new double glazing (where previously windows were single glazed), central heating (where previously no central heating). Replacing windows, heating systems, kitchens and bathrooms may not significantly add value. Freehold/er You own both the land and the property that s built on it.

7 Acceptance of Offer form Step up! How to purchase more shares of your home 6 Name/s in full Solicitors acting on my behalf Solicitors name and address Property address Postcode Postcode address Telephone number Percentage to be purchased Equity share value % address I/We confirm that we have instructed our solicitors I/We understand that this transaction must be completed on or before: Signed 1 Date / / / / Valuation expiry date / / Following which a revaluation will be required if the staircasing is to proceed. Signed 2 Date / / Please return completed form to: Thames Valley Housing, Premier House, 52 London Road, Twickenham, TW1 3RP. staircasing@tvha.co.uk

8 THAMES VALLEY HOUSING AND FINALLY Useful numbers to get in touch: Thames Valley Housing Shared Ownership Department Tel: Independent Financial Advisors Ash-ridge Asset Management Ltd Tel: Mobile: Valuers Frazers Surveyors Ltd Tel: Brett Gardner Tel: Solicitors E J Winter & Son Solicitors Tel: Contact: Paul Kilshaw paul@ejwinter.co.uk Herrington & Carmichael Tel: Contact: David Keighley david.keighley@herrington-carmichael.com