'Staircasing' is the process of purchasing a property in segments with the end goal of owning it completely.However, until it is owned completely, we would be subjected to discounted rent.With staircasing, it is possible to purchase a fraction (1/4th usually) of the properties full market value.(Full market value usually being estimated at a pre-recession market price).A real example of this is a 125 year lease on a one bedroom apartment new build property for double occupancy in North West London going at the full rate of
£142,500.With staircasing however it is possible to purchase to a fraction of this apartment at £35,625 or 1/4th of the full price exactly.Why is this
relevant?Because we can use this figure to determine our absolute minimum deposit figure & mortgage expenditure.Add that to an estimate of water rates,council tax estimates & the subsidised rent and we get a clearer picture of our own affordability before we package the application to the lender.

Now 10% of £35,625 is £3562 and 50pence.An opportunity to build wealth on the property ladder and own a house for under £4000.An incredible option I believe you will agree.If you followed the instructions in our 'How To Raise A Deposit' article you should well be on your way to aquiring this small deposit if you have not already done so! However,with any property purchase the more cash you can deliver upfront the better in the long run, as this means more home equity,more mortgaging options available to you,better credibility to lenders and cheaper mortgage rates.Lets now say you decided that in a further short amount of time you raised an extra 5% bringing your total deposit £5343.75 to the penny(15% of £35,625 - the price for one segment of the property).You would also need additional finance to cover the mortgage arrangment fee(around £1000) & solicitor legal fees estimated at around £500 (However we would not have to pay any Stamp Duty Land Taxes - SDLT - to the crown because the total value of the property is considerably lower than the SDLT threshold.)

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