Shared Ownership Plus Staircasing Scheme

MissG80 · 11 February 2018 at 12:22PM

Does anyone have experience of share ownership plus? It's a scheme where you can buy 1% of the value of your property every year for 15 years at a fixed price (fixed at time of first purchase and no increases in line with property value, no need for valuation) with no fees.

I own a 70% share of my flat. I'm trying to decide what it is best to do with my spare cash.

My flat went up 12.35% in the past two years so I figure it's good to increase my share and benefit from the growth. A 5% share increase (1% a year for five years), after the cost of the share and assuming the same rate of property growth, would mean £4k more of the value of the flat is mine after five years and I'll benefit from gradual albeit small rent decreases. I had to pay £1.2k solicitor fees to staircase first time so that 's also saved, plus small rent decreases. My mortgage rate is 1.79% and it therefore beats what I'd save by overpaying.

My question is just if anyone else had done this? If I do it for say two years and then own 72% and decide to sell, what happens? Do I sell a 72% share? Would that put a buyer off?

As it is, I feel like a 70% share might appeal to those who are just about unable to afford open market. It's two bed so room to expand. Would a 75% share be as appealing?

Did I read that the HA (mine is TVHA) would let you sell at 100% (and keep their part plus the profit on their part) if you can't sell?

I'm at the edge of affordability to staircase more by taking a bigger mortgage - plus scary being tied into the payments - but maybe in five years when I've got more savings to offset it, so I'm trying to keep up in case I have a payrise and get the opportunity etc,

Also trying to decide whether to buy more or put money in a LISA, it would be a more straightforward decision (i.e. go with LISA) if I wasn't on shared ownership.