Frequently Asked Questions

General

What is StrideUp

For many people buying a home is a dream that seems far out of reach. We started StrideUp with a mission to provide a more accessible and affordable way for people to fulfil their homeownership dream.

With StrideUp you find a home and buy a portion of it today. As you save money you gradually increase your ownership and reduce your monthly payments. When you're ready, you can buy out the whole property and own outright.

StrideUp can help even if you're not ready to buy yet. Saving for a deposit can feel like an uphill task, especially when house price grow faster than wages. By using StrideUp to invest, your savings grow with property prices, giving you a more predicatable route to buying your own home.

StrideUp is available to many people who cannot get a mortgage large enough to purchase the property they want. Mortgage providers typically lend a maximum of 4.5 times your income - the problem often is that prices are much higher than this.

StrideUp doesn't lend you money, rather we purchase the property you want alongside you. Let's say you've saved 10% of the value of the property; you'll start by owning 10% and we'll own 90%. As you save you buy back from the 90% and work towards full ownership. All the while you get to enjoy the benefits of living in your own home.

Buying and Investing

1. Find out what you could afford with StrideUp
Our model is more affordable than a mortgage so even if you thought you couldn't buy yet, try out our calculator to see what's possible.

2. Submit an application
Tell us about your finances and other details and we'll prepare an indicative offer for you.

3. Find a property
View properties within the budget we provided and once you find something to want to proceed with, submit the details to us.

4. Make an offer
We'll review the property to make sure it's a decent purchase and the price is right.

5. Go through the buying process
Once the offer is accepted there's a few steps that need to be completed to purchase a property. We'll guide you through this to make it as stress free as possible.

6. Complete the purchase and move in
At exchange of documents, you'll sign the papers, put down your deposit and agree a date for move in.

1. Create an investors account
Before we can show you investments, we need to verify your details and eligibility to invest.

2. Fund your StrideUp account
Your money will be secure - it is held (deposited at the end of each business day) in a segregated client account at Barclays.

3. Make an investment
Choose a fund in which to invest and put your money to work.

4. Receive dividend payouts
As the fund earns rental income, this will be paid out to investors as dividends (after costs and corporation tax). You can choose to reinvest your dividends, or have it paid back into your bank account as profit.

Availability

StrideUp is currently available in the Greater London area.

Want to buy in a different area? We are growing quickly and will be expanding soon. Sign up on our homepage and tell us where you want to buy - we will be sure to update you when we launch in your area.

Making an offer

Getting started

On our website there's a calculator to give you an estimate of what you might be able to afford. This is just a guide and depends on many factors; if you're interested it would be best to sign up and fill out a (no commitment) application.

After using our website to get a rough idea of what you could afford, the next step is to sign up and complete an application for an indicative offer. You'll need to submit some information about your employment, earnings and expenditure and we'll assess it. Our goal is to respond to you within 48 hours, either with an indicative offer, or with details of the further information we need to make an assessment.

Your indicative offer will be valid for 90 days. If you find a property after this period, you can always re-submit an updated application, and we'll send you a new indicative offer.

No, we will not run a hard credit check.

Finding a property

You can start searching the market whenever you want, but it will be most useful to get an indicative offer first. The indicative offer will tell you what you can afford with StrideUp, so you'll have a better idea of budget.

We're working on making our product available to everyone. For the moment we'll consider properties that meet the following criteria

  • Single family properties that are in a liveable state without renovation
  • Homes that are site-built (not mobile homes, house boats or pre-fabricated)
  • Homes that are located in our availability areas (check our calculator to see which areas we're currently in)
  • Maximum property price of £500,000, minimum value of £75,000.
  • If a leasehold property, with a lease term remaining of 100 years or more
  • Homes that will be sold vacant (not with a tenant in place)

In addition the following properties are likely to be subjected to extra scrutiny:

  • New build developments
  • High rise towers
  • Ex-local authority properties
  • Prime properties (e.g. premium Central London properties)

The StrideUp product replicates some of the features of shared ownership insofar as you're buying a portion of your home today, and gradually increasing your ownership over time. Therefore it cannot be combined with housing association shared ownership schemes.

At the moment we are not offering this with Help to Buy equity loan properties.

Unfortunately for the time being you will incur the government withdrawal charge if you use your Lifetime ISA to purchase a home with StrideUp. This is because the government rules currently require you get a mortgage. We're are working on getting this fixed - please let us know if you would like to be notified once this is resolved.

Great, submit the property details via the homebuyer application portal. Our goal is to respond to you within 24 hours. If the property meets our criteria, we'll give you a price up to which you can offer on the property.

If you think the property is worth more than our valuation, please speak to our team about why you think so. If we agree, we'll increase the maximum offer price.

How it works

Completing the purchase

Yes we have a panel of solicitor that can advise you. We receive no financial incentive from you choosing a firm on our panel, rather these are just firms that have previously worked on and familiarised themselves with StrideUp's product.

Yes you can use your own solicitor. If you choose to do so your solicitor will need to provide us a certificate that you have been appropriately advised - we suggest you ensure they will be willing to do this (in the exact form specified), prior to engaging them.

Yes we have a panel of firms offering RICS qualified chartered surveyors. We receive no financial incentive from you choosing a firm on our panel.

Yes, but there will be additional fees to do so if we determine that we will not rely on your choosen firm's assessment, and will conduct our own valuation.

If the survey uncovers problems with the property we will have to assess the impact before proceeding further. If it is something that can easily be rectified by the vendor (or the price reduced to reflect the cost of repair), we should be fine to proceed. If it is a more serious and / or lasting problem, it is likely we will not be willing to proceed with the purchase.

Even if there are no major problems identified, if the surveyor's valuation comes in under the agreed offer price, we will not be willing to proceed (unless the price can be re-negotiated to match the valuation price).

Eligibility

Yes - we will want to understand the situation around the CCJ, but in no means does it preclude you.

Yes but we will want to see some history of earnings to establish what your regular income level is.

You can certainly apply, but please note the application is likely to be stronger if the debt is cleared before you purchase your home.

Security and trust

StrideUp is a young and ambitious company founded in February 2016. It is backed by some of Europe's most successful entrepreneurs and investors.

Once the valuation report for the property is received, we'll give you a formal binding offer.

The title of the property will be held in the name of trustees. You will be a beneficiary of the trust in the proportion to your share. This arrangement is to protect the joint owners of a property.

Yes. Your protection in the transaction comes from the advice you'll receive from your solicitor. They will explain to you the details of the arrangement from a legal perspective.

No. Your property is never held by StrideUp, so regardless of what happens to StrideUp, your share is secure.

Yes, if you have the funds to buyout 100% of the property at market price (for example by securing a traditional mortgage, or from an inheritence), you always have the right to do so.

Increasing ownership

It's as simple a logging into your homebuyer portal, checking the current price of your home (based on our calculation) and making payment for the amount you wish to purchase. You don't need to spend money getting a survey done (although of course you can do if you disagree with our price, following which the survey price will apply).

Pricing and costs

Buying costs

Stamp duty can be a significant additional expense in buying a property. To make things easier for homebuyers, we split the initial stamp duty in proportion to the ownership shares. However, as you increase your ownership, you'll need to pay us back for the part of the stamp duty we initially paid.

You pay your solicitor fees.

We split the cost of the survey in proportion to our initial ownership shares. You'll need to arrange the appointment with the surveyor and pay for it initially, but we'll settle the difference once the purchase completes.

On-going costs

As part of your offer we'll set your rental payment rate based on an assessment of the fair market rent for the property. This is an amount that you pay monthly based on the portion of the property you do not own.

There are two options for resetting the rental payment rate. One is to link it to inflation, the other is to reset it based on market rents. You'll need to make a choice at the beginning as to which option you prefer.

Depending on the type of home you buy, there may be other costs such as a building service charge, contributions to a sinking fund, ground rent payments etc. In the process of buying, these costs will be identified and verified.

The monthly rental payments do not contribute to increasing your ownership. Any payments above the rental amount will go to buying more of the property. You can setup a regular payment so that your ownership is gradually increasing.

Increasing ownership

When you buy more of the property we will be selling our share of the property to you, and so it will be at the market price at that point in time.

There are no additional fees imposed by StrideUp, however there is an acquisition cost. The acquisition cost adjusts the market price to include the costs related to the initial purchase of the property (primarily stamp duty and survey costs).

Exit

You can always terminate the arrangement early if, for example, you want to move to another home or buyout with a mortgage. The charge to do this before the end of 5 years is 1% of the property value not owned by you. (This is in addition to paying back the initial costs of purchase (primarily stamp duty and survey cost)).

There are no additional fees imposed by StrideUp if you terminate at the end of the term.

However please keep in mind if you buyout with a mortgage, your new mortgage lender may charge an arrangement fee. Alternatively If you decide to sell the property the estate agent will also likely charge a fee.