Home Stepper

The share you can purchase is dependent on your individual financial circumstances. You can initially buy up to a 75% share of your home based on how much you can afford.

Yes, you're free to increase your share of home ownership gradually using a process called ‘staircasing’. This means that, over time, you could come to own 100% of your home. In this instance, a transfer of the freehold interest of the house or a transfer of the full leasehold interest of the apartment will be required.

You will pay rent directly to Sage Homes. The monthly amount you will pay depends on the value of your home and the size of the share that you originally purchased. Any outstanding rent will be paid on the unpurchased share of your home (which is owned by Sage Homes) at a rate of 2.75%.

Every year, the amount you pay for rent will be reviewed on 1st April and is usually in line with the year-on-year change to the Retail Price Index (RPI) plus 0.5% in the preceding 12 months. These terms are clearly outlined in your lease before you sign anything, and our sales teams are always available to explain the entire Home Stepper process, should you need them to.

You'll have several other payments to make in addition to the rent you pay to Sage Homes. This includes, any household bills, including council tax and utility bills, as well as any maintenance fees and estate charges that apply to your chosen home. You will be expected to pay 100% of these costs.

Sage Homes charge an annual leasehold management fee, along with a service charge, which you will need to pay directly to them. The leasehold management fee costs £195 per annum and increases each year with inflation, all other costs are clearly set out in your lease.

“Shared Ownership” means you will be acquiring a percentage share of the home, with Sage Homes owning the remaining percentage of the unacquired share. You can absolutely live in the home as if you owned it outright (subject to the terms of the lease). While it's possible to purchase a Linden Home with another person, this is not a requirement of the Home Stepper shared ownership scheme. If you do decide to purchase the property with another person then your combined household income shouldn't total more than £80,000 (£90,000 in London).

Buildings insurance will be provided by Sage Homes as standard, and payment for this will be included in the service charges. Your IFA will inform you of these costs. However, you will need to arrange your own contents insurance separately.

You're welcome to sell your home at any time. If you decide to move out, you will need to notify Sage Homes that you wish to sell the property. Sage Homes will then arrange an independent RICS valuation to value your home. The new purchaser(s) will need to meet the Home Stepper eligibility criteria in order to proceed with the sale. Sage Homes then have four weeks from receipt of your intention to sell notice to nominate a purchaser(s) so that other people can use the scheme.

Sage Homes are unable to find a buyer for your home, or if one is found but fails to exchange contracts with you within 12 weeks of your solicitor issuing the draft sale contract (and related sale documentation), you can then put the property up for sale on the open market. If you manage to sell the property this way, on completion of the sale you must repay to Sage Homes the market value of the unacquired percentage share (the percentage share that Sage Homes owned before the sale).

You will be required to pay any fees incurred duringt this process, including the valuation, Sage Homes's fee of 1% of the full market price (to advertise the property for sale), as well as legal and admin fees.

Yes, stamp duty is required when using the Home Stepper scheme. This will be reflective of the percentage share of the home you are purchasing, subject to any allowances which may be offset against the Stamp Duty payable. Please speak with your solicitor who will be able to calculate this for you.

All shared ownership customers who purchase a Linden Home under the Home Stepper scheme will have the responsibility of completing and/or paying for repair works that are not covered by the Linden Homes two-year customer service warranty or the NHBC’s 10-year building warranty.

Any white goods such as a fridge and washing machine sold with your home will each be covered by an individual guarantee which you will receive on legal completion.

Of course - you're more than welcome to decorate your new home as you wish. However, if you wish to make any significant alterations to your home, such as an extension, you will need to seek permission from Sage Homes/Linden Homes and obtain any relevant planning permission. The exact terms of what alterations you can and cannot make to your home will be outlined in your documentation.

As the provider of the Home Stepper scheme, you will need to contact Sage Homes directly for permission to keep pets at the property.

The majority of shared ownership leases do not allow you to fully sublet your home. However, Sage Homes will consider granting permission for you to take a lodger on a case-by-case basis, and you will need to contact them directly.

Yes, you can expect additional admin fees during the Home Stepper Process.

It is common for landlords of leasehold properties to be notified of your mortgage lender as the lender will register a legal charge on the title to the property. Sage Homes will need to approve your mortgage offer, in which this process costs £50 (+VAT).

On legal completion, Sage Homes will need to be served a notice of charge (notice of your mortgage lender) in line with the terms set out in the shared ownership lease. The notice of charge fee is £75 (+VAT). The solicitor acting on your behalf will include these fees in your completion statement and these will be payable on the day of completion. If you are buying your share without a mortgage then these fees won't apply.

Shared ownership properties are not covered under the Consumer Code or NHQC (New Homes Quality Code).