Buying more shares in your home

Transcription

1 Buying more shares in your home

2 Buying more shares in your home Decided you might like to staircase (this is what we call buying more shares in your home)? What do I need to do first? 2

3 Decided you might like to staircase. Think about how much the extra shares will cost? Before you pay for a valuation, check the approximate value of your home. You can do this by: Looking at local property papers and local estate agent windows Look on the internet, there are lots of sites: or www. zoopla.co.uk Once you have an idea of the value of your property, you can calculate how much extra shares might cost. For example: Property Value 200,000 Cost to purchase a further 50% share 100,000 Cost to purchase a further 25% share 50,000 Think about how your monthly payments will change? If you staircase up to 100% then there will be no more rent to pay. If you staircase to less than 100%, there will still be rent to pay but it will be reduced by the same percentage. Your service charge will remain the same (if appropriate). Remember to factor in any increase in your mortgage to buy the extra shares. To see what your new mortgage could be, either use a mortgage calculator online: mortgagecalculator Or talk it over with an Independent Financial Advisor. There are details on our website of some who other shared owners have used. Other costs Fees for your new mortgage Conveyancing fee Our administration fee, currently (inc. 20%). What about improvements to my property? If you have made improvements to your home (rather than repairs or maintenance) point these out to the valuer. They ll decide how much these have added to the price of your home. This will be discounted from the purchase price. Please note that the cost of improvements is not necessarily the same as the value added. 3

4 Ready to go ahead? Step 1 Get your home valued and let us know you are planning to staircase A) Get a valuation To go ahead you need to have your property valued by a surveyor. They need to be FRICS, registered with RICS (Royal Institute of Chartered Surveyors). The cost of this can range quite widely, so shop around. We have an experienced panel of surveyors who can assist the details are on our website. You are able to instruct a surveyor of your choice. But if you do they must meet the following criteria: The valuer needs to be independent and can not be associated with any estate agents The valuer must not be related to you The valuer must not be employed by any bank/ building society The valuer must be registered with the recognised qualification of FRICS or RICS. AmicusHorizon will require a copy of the valuation report directly from the valuer. Please let them know this at the time of booking. It must be valid for a period of three months (and should be valid until completion takes place) If you have carried out any improvements to the property you should make the surveyor aware when they visit. A separate figure should be provided in the report to confirm the type and value of the improvements and the increase in value to your home. If you have received consent for these improvements we will be able to make a reduction to match the increase in value. B) Complete the Leaseholder Intention Form this is also on our website Go to forms 4

5 Step 2 Let us know you want to go ahead If you still want to go ahead after you have received the valuation: Let us know you want to continue and ask for a offer letter Pay the administration fee of 240. Step 3 Putting everything in place Return the offer letter and give us your solicitor s details. You and we instruct our solicitors You contact your mortgage lender to ensure funds agreed (if applicable) You and we stay in touch with our solicitors for sale progress. Suggested solicitors on our website Step 4 The final steps Completion date set - must be within 3 months of the date of the valuation report Any rent / service charge must be paid before completion can happen Sale completes you now own more / all shares After completion We receive the legal paperwork, close your file and pass to Home Ownership Team Home Ownership Team makes any changes to your rent account and will refund any overpayment. 5

6 6