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    • Justlce
    • By Justlce 12th Jan 18, 8:48 AM
    • 2Posts
    • 0Thanks
    Please help - staircasing conundrum
    • #1
    • 12th Jan 18, 8:48 AM
    Please help - staircasing conundrum 12th Jan 18 at 8:48 AM
    Hi all

    We own 40% share of a flat (mortgage-free) and would like to staircase to 100% with mortgage.

    Mortgage application was accepted, offer received, and we chose a solicitor from the bank's own conveyance panel.

    The problem: the solicitors think the property should be dealt with as a mortgage and not a purchase. The bank's mortgage advisor seems to disagree, so now there is a standstill.

    We are caught in the middle, I couldn't find info regarding this anywhere. All solicitors' websites talk about purchase, and that staircasing might be more complicated than buying the initial share. This is different form what the current solicitor thinks, that the process is very simple as it will be treated as a mortgage not purchase.

    However, it is a large firm of solicitors, so who am I to disagree?

    Should I proceed (and benefit from a quick process) or agree with the bank and probably change solicitors? This would delay an already very long process.

    I am desperate to hear the opinion of people who have been through this before. Thank you!
    Last edited by Justlce; 12-01-2018 at 8:50 AM. Reason: mistake
Page 1
    • haras_nosirrah
    • By haras_nosirrah 12th Jan 18, 9:09 AM
    • 1,426 Posts
    • 2,630 Thanks
    • #2
    • 12th Jan 18, 9:09 AM
    • #2
    • 12th Jan 18, 9:09 AM
    I specialise in shared ownership and have done for 12 years.

    I have always done staircasing transactions as a remortgage not a purchase. This is because you already own the property.

    In your case it would be a remortgage no existing mortgage.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Justlce
    • By Justlce 12th Jan 18, 9:19 AM
    • 2 Posts
    • 0 Thanks
    • #3
    • 12th Jan 18, 9:19 AM
    • #3
    • 12th Jan 18, 9:19 AM
    Many thanks! This helps a lot.

    The legal work will still be handled by a solicitor, right? And all the necessary steps followed (SDLT return etc.)?

    Also, what proof will I receive that I own 100%? On the internet I found mentions of a Memorandum of Staircasing. However, the H&C Agency says I will need either:
    (a) a certificate that the final staircasing has been completed or
    (b) a confirmation that the tenant has purchased 100% of the equity
    if in the future I want to restrictions removed from the title etc. Are these the same thing?
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