Remortgaging, transfer of ownership and lease extensions

There are some transactions that we need to involved with. Find out more below and download the application form.

Completed applications forms should be sent to commercialservices@stonewater.org

Remortgaging - This is when you obtain a new mortgage with another lender. It is different from further borrowing (see below). If you wish to remortgage, Stonewater will need to provide consent. Where you intend to borrow over your redemption figure by more than £1000, Stonewater will need to see confirmation of why you are obtaining this amount.

There is a charge of £100 including VAT for a remortgage, plus £100 including VAT for the signed notice. We will require a completed application form, certified ID and confirmation of your new mortgage.

Product transfer – This is when you simply move to another product with the same lender. As you are not further borrowing, Stonewater does not need to provide any consent. There is no charge to you for a product transfer, but we will still require a completed application form, certified ID and confirmation of your new mortgage.

Further borrowing – This is when you obtain a new mortgage and borrow above your original mortgage amount. Stonewater will need to provide consent. We will require a completed application form, certified ID and confirmation of your new mortgage.

You must also obtain a RICS Red Book Valuation in order for Stonewater to determine the maximum you can further borrow. Shared Owners can only further borrow for the following reasons: 

• Further borrowing to purchase additional shares (staircasing)
• Further borrowings to comply with the leaseholder’s covenants in the Shared Ownership lease, such as essential repairs
• Further borrowing to allow one leaseholder to buy out another leaseholder’s interest (in the same property)

If you are not further borrowing for one of the above reasons, we won't be able to process your application. There is a charge of £100 including VAT for a remortgage, plus £100 including VAT for the signed notice with further borrowing.

As a leaseholder, we do not need to approve any remortgage, further borrowing or product transfer.

However, we will need to sign something called a “Notice of Charge” which is a document sent to us to notify us of the remortgage. 

 We charge a fee of £100 + VAT for completing this.

As the freeholder of your home, Stonewater does not need to be involved if you chose to remortgage or further borrow.

Removing a party

If you are removing a party from your Shared Ownership lease, we will need to ensure that the remaining party can afford to maintain the rent and service charge obligations on their own. We will also need consent from the outgoing party to prove that they agree to be removed.

You will need to provide certified ID for all parties to the lease, an income and expenditure form for the remaining party, and 3 months' pay slips and bank statements, as well as any mortgage offer to allow us to assess affordability.  

We will need to check that the remaining party was originally on the lease and that removing a party will not leave someone who was not originally a purchaser of the home.

We charge an administration fee of £120 including VAT for processing the transaction, as well as £100 including VAT for the Notice of Transfer on completion.

Please be aware, you are liable for your own legal fees for a transfer of equity, as well as any other additional fees.

Adding a party

If you are thinking of adding a party to the lease, we will need to ensure that the new ownership arrangements meet the requirements of the Shared Ownership scheme and both parties are eligible.

We will also need written confirmation from the incoming party that they wish to join the lease, Certified ID from all applicants, and confirmation of any change of mortgage and a RICS (Royal Institute of Chartered Surveyors) Valuation.

We charge an administration fee of £120 including VAT for processing the transaction, as well as £100 including VAT for the Notice of Transfer on completion.

Please be aware, you are liable for your own legal fees for a transfer of equity, as well as any other additional fees.

If you are thinking of changing the ownership details of your home by adding or removing a party, please let us know as soon as possible, at commercialservices@stonewater.org

We'll need details of the outgoing/incoming party in order to update our records.

We will arrange for a Deed of Covenant to be completed, as well as sign a Notice of Charge. There is a charge of £100 including VAT for each of these documents.

If you are thinking of changing the ownership details of your home by adding or removing a party, please let us know as soon as possible, at commercialservices@stonewater.org

We'll need details of the outgoing/incoming party in order to update our records.

We will arrange for a Deed of Covenant to be completed, as well as sign a Notice of Charge. There is a charge of £100 including VAT for each of these documents.

This guidance relates to Stonewater’s voluntary lease extension process.

As Shared Owner, you currently have the option to extend your lease by up to 90 years for a flat, and 50 years for a house, under our voluntary lease extension process.

We suggest using this lease calculator to see what you may need to pay to extend your lease. Please note that this is only a guide, and the specialist valuation may be quite different.

For more information on extending your Shared Ownership lease, please download the relevant guide and application:

• Guide to extending your lease – Shared Ownership flat
• Guide to extending your lease – Shared Ownership house
  
  

Important advice: If you live in a house, we recommend first looking to see whether you are able to purchase the remaining shares in your home and own 100%, as well as the freehold. Purchasing 100% and acquiring the freehold of your house means your lease falls away and an extension is not required.

Lease extensions normally only take place for houses that are restricted to 80% ownership, as they are not able to acquire the freehold.

If 100% staircasing and freehold purchase is an option for you under the terms of your lease, please contact us at commercialservices@stonewater.org before deciding on whether to proceed with a lease extension or not. 

If you are unsure whether you are able to buy 100% and the freehold of your home, please contact commercialservices@stonewater.org

This guidance relates to Stonewater’s voluntary lease extension process. If you wish to proceed with a statutory lease extension, we recommend you contact your solicitor for advice on how best to proceed or visit The Leasehold Advisory Service.

As a leaseholder, you currently have the option to extend your lease by up to 90 years under our voluntary lease extension process. This is the standard lease extension term for a flat and in line with the current statutory guidance.

We suggest using this lease calculator to see what you may need to pay to extend your lease. Please note that this is only a guide, and the specialist valuation may be quite different.

For more information on extending your lease, please download our guide and application.

As a freeholder, you do not have a lease on your home, and therefore are not required to undertake a lease extension.