Micro staircasing your shared ownership home
Micro staircasing gives you added freedom to decide when and how much you want to increase your ownership share.
What is micro staircasing?
Micro staircasing offers you the flexibility to purchase an additional 1% in your home each year, for the first 15 years of being a shared owner.
Staircasing versus micro staircasing
Unlike traditional staircasing, where you may need to obtain additional funds from a mortgage lender and instruct a solicitor for a larger percentage, micro staircasing allows you to increase your ownership more flexibly, for example, with personal savings.
- Decide when you want to increase your ownership share and by how much.
- Work out if you want to make annual small increases or occasionally take larger steps.
This flexibility can make the staircasing process feel less daunting and you can tailor it to your personal circumstances.
How does micro staircasing work?
You're able to buy an additional 1% share of your home each year for the first 15 years after you become a shared owner.
We work out the cost of the additional 1% by using the House Price Index (HPI) to determine the current value of your home.
At the start of April each year, we'll send you an Additional Percentage Value Notice. This sets out the current value and the cost to buy the additional 1%. This value is valid for three months.
You can request an updated Additional Percentage Value at any time within the year if you decide you want to micro staircase.
You're only able to buy an additional 1% per year through micro staircasing. This won't stop you buying more shares of 5% or more though, that can still be done through traditional staircasing.
We don't charge fees for micro staircasing, and you don't have to be represented by a solicitor.
Micro staircasing step-by-step
- We let you know how much it will cost to buy 1%.
- You confirm you want to proceed.
- We'll send you your memorandum of 1% staircasing to sign, and provide you our bank details.
- On receipt of payment for your additional 1%, we'll send you our signed copies of the memorandum of staircasing. This confirms your new ownership.
- We'll adjust your rent account, to reflect the lower rent amount.
Things to know about micro staircasing
- We'll provide you an Additional Percentage Value (APV) notice each April.
- You're able to request another APV at any point in the year, and each value is valid for three months.
- You're only able to micro staircase once in any year. You're not able to roll over any unused options to buy a 1% share to future years.
- You can buy more shares in your home through 'traditional' staircasing, which starts from buying a minimum of 5%.
- We'll initially use the price you paid for your property, when you first bought through Latimer, for the HPI valuation.
- If you obtain a valuation from a RICS valuer, for the purpose of traditional staircasing or for any other reason, we'll use that valuation to determine the APV.
- If you disagree with the valuation we provide using the HPI, you're able to instruct your own independent RICS valuer to carry out a valuation.*
- You're not able to use additional lending from a mortgage provider to purchase the additional 1% in your home.
- If we don't hear back from you after we issue your APV in April we'll assume you don't want to micro staircase at this time.
*More information on what your valuation needs to include can be found on our valuation FAQ page.
Micro staircasing - what next?
Follow the links below to ask for a valuation or find out more.