Shared ownership - is it pointless to staircase to 75%?

StaircaseSparrow

We live in a shared ownership home and could afford (at maximum of what Nationwide will lend) to staircase from our current 50% to 85% ownership. However if we did this stamp duty would be payable. 75 or even 79% seems more sensible. Fees would be around £1800.

Is it always a bad idea to staircase to 75%? I'm really worried that if we don't staircase prices will keep rising and we'll be trapped unable to keep pace with the housing market. An additional share purchase would help us keep pace that bit more. We've lived here for 2 years and the price had increased by £40k already!

I understand it's hard to find another shared ownership buyer. if you do back to back staircasing (in order to sell 100% of a home on the open market), is stamp duty payable then?

Our other options are to:
1. overpay on the existing mortgage as much as possible

2. Move to a newbuild home using the help to buy scheme - pretty much like shared ownership but with no rent to pay on 20% of the value for 5 years, which could be used to overpay the mortgage! It would be to a similar sized house, semi detached instead of detached. Equally good area.

What would you do?

TL;DR - Is it a bad idea to staircase to 75% shared ownership?

Hoploz

Would you be eligible for Help To Buy having already owned a home?

If you staircase up you'll have less rent to pay.

If you intend to eventually buy the full 100% then the earlier the better as prices normally go up so if you buy 25% now it'll cost less than later.

Do you want to move, or stay put?

Stamp Duty - when I did shared ownership I had to pay the stamp duty on the full value when I bought my share initially .... I don't remember having to pay again when I staircased. Are you sure you would need to pay this?

diggingdude

Yes No Yes in my personal opinion on staircasing to 75% as was looking seriously at one in the past
Yes - you own more of your home so benefit from any rise in value
No - many buying shared ownership cant afford the full 75% you own
Yes - rent is less so in theory money in your pocket.

StaircaseSparrow

Thankyou for your reply Hoploz!
Would you be eligible for Help To Buy having already owned a home?
Yes, we would be eligible for a new build, I double checked this
If you staircase up you'll have less rent to pay.
Yes - the rent is actually cheaper than the mortgage repayments would be but we'd be gaining equity and any increase in house prices

If you intend to eventually buy the full 100% then the earlier the better as prices normally go up so if you buy 25% now it'll cost less than later.
Yes this is the thing isn't it...although we'd have to pay fees and legal costs of staircasing twice, £1600 a time

Do you want to move, or stay put? I wish I knew long term... probably another 5 years?

Stamp Duty - when I did shared ownership I had to pay the stamp duty on the full value when I bought my share initially .... I don't remember having to pay again when I staircased. Are you sure you would need to pay this?
our solicitor didn't give us the choice, we haven't paid any stamp duty yet. How many stages did you staircase in?

StaircaseSparrow

Thanks for replying Diggingdude. What did you do in the end?

Yes No Yes in my personal opinion on staircasing to 75% as was looking seriously at one in the past
Yes - you own more of your home so benefit from any rise in value
No - many buying shared ownership cant afford the full 75% you own
Yes - rent is less so in theory money in your pocket. it will actually be more expensive to pay mortgage than the rent BUT the rent will only ever increase and at least the higher mortgage cost will be contributing to equity