New model shared ownership housing re-sales and buying more shares

Selling your shared ownership home

If you want to sell your shared ownership home, you’ll need to speak to us at Oxford City Council as we own a proportion of the property.

We work with So Resi who provide our re-sales service. They have a dedicated team of specialists who are on hand from the moment a referral is made to them. With years of experience, they are skilled at working in harmony to make your experience seamless, from start to finish.

There will be a fee for arranging the sale, just as if you were paying an estate agent.

If So Resi, on behalf of us, don’t secure you a buyer within 4 weeks, you will then be able to sell your home as shared ownership through a local estate agent if you wish to, with the new buyer purchasing your share, not the entire property.

Oxford City Council will remain part-owner and the organisation the new buyer will pay rent and service charges to.

You’ll need a solicitor who knows about buying and selling shared ownership homes and So Resi can help with this.

SO Resi have created a short video to explain the process.

View the SO Resi - Selling your home and moving on video on YouTube.

Buying more shares in your home (staircasing)

You can usually buy more shares in your property after moving in. This is known as staircasing. Most mortgage providers consider re-mortgaging to fund share purchases.

Staircasing in by 1%

Your lease allows you to staircase in 1% tranches for a 15 year period. This 15 year period re-sets every time there is a sale

.After this 15 year period, the minimum staircasing transaction is now 5% of the open market value, rather than previously being 10% on the older leases.

For 1% staircasing transactions, the valuation is calculated from the Land Registry’s House Price Index.

At least once a year, we as the landlord are required to update the valuation and to serve notice of the new valuation on you. We will do this by sending you the Land Registry's House Price Index (HPI) valuation. The staircasing transaction will be based of 1% of this valuation.

Please note:

• You will not be able to 'roll over' any 1% staircasing transactions from year to year. I.e. you can only do 1% per year this way. For example:
  • If you opt not to complete a 1% purchase in year 4 you cannot buy 2% in year 5
  • Nor would that year’s allowance be added to the end of the 15 year period
• Some leases contain restrictions to the maximum amount of shares that can be purchased. These will be explained to you as part of your initial purchase
• Stamp duty will be payable if your staircasing transaction take the shares you own to 80% or more

Staircasing in 5% tranches

After 15 years If you decide to purchase more than a 1% share then these must be purchased in 5% tranches.

5% staircasing transactions will require a RICS valuation.

The cost of the new share is based on the current market value, not the original price. Additional costs like solicitor's fees will apply for each purchase.

Before staircasing, ensure you can afford the extra shares. Contact your lender for advice on managing the additional costs.

Most RICS valuations are valid for about 3 months, so act quickly if you can afford it. Make sure you have sufficient funds before requesting a valuation. Your rent will decrease as you buy more shares.

So Resi also provides our staircasing service, offering guidance throughout the process.

SO Resi have created a short video to explain the process.

Reaching 100% ownership

As a house owner, achieving 100% ownership means becoming a freeholder. You'll no longer pay rent, only your mortgage and service charges for common areas e.g. communal gardening. You'll also need to arrange your building insurance.

As a flat owner, reaching 100% ownership turns you into a leaseholder. You'll no longer pay rent, just your mortgage and service charges.

Interested in buying more shares?

Contact your Home Ownership Officer at Oxford City Council for guidance.