Staircasing Your Shared Ownership Property

Helping you secure more shares of your property

As a Shared Ownership home owner, you can purchase more shares in your property. This is known as staircasing. Purchasing more shares after your initial purchase is completely up to you; it’s not something that you have to do. However, you can staircase if you’d like to reduce the rent you’re paying on the other share of your property.


Purchasing Additional Shares


If you are interested in purchasing additional shares of your property, you will need to speak to your Housing Association to get started. You will also need to get your property valued to find out the current market value. You are responsible for the cost of the valuation and it is important to bear in mind that a valuation only last three months. If you do not purchase additional shares within three months of your valuation, you will need to get your property re-valued.

Once you have purchased your additional shares, the rent you pay on the remaining shares owned by your Housing Association will reduce to cover the new share amount.

You may find that your lease sets restrictions on the number of times you can staircase, along with the minimum share you can purchase. This is usually 10% or 20%, unless it is the final share to reach 100%.


How Much Does Staircasing Cost?


When you purchase more shares in your home, you can also expect to incur additional costs, including:

  • Valuation fees
  • Legal fees
  • Mortgage arrangement fees
  • Stamp Duty Land Tax (if you own an 80-100% share of your property)

Changes to Your Mortgage


When you staircase, you will be purchasing at least 10% of your property which may include you getting additional money from your mortgage lender.

Receiving an additional amount from your lender is known as a further advance. Alternatively, you may move to a new lender which is known as remortgaging.


The Process – Simplified


  1. Speak to your Housing Association about purchasing additional shares.
  2. Choose a surveyor to value your home to find out the current market value.
  3. Receive your valuation – it is only valid for three months.
  4. Instruct New Homes Law to assist in the purchase of your additional shares.
  5. Arrange a mortgage with your current, or new, lender.
  6. Once the mortgage offer is received, it will need to be sent tp your Housing Association for approval (if staircasing to 100% it does not need to be approved).
  7. Purchase additional shares within three months of your valuation.
  8. Your rent will be adjusted to the new share amount.

 


Things to Know


  • Check your lease as there may be a limit to the number of times you can staircase
  • All shared ownership properties are leasehold, when you staircase to 100% you may be able to transfer to a freehold if you own a house
  • Valuations are required prior to any purchase of additional shares
  • Valuations only last three months

 

The Process in Detail

Purchasing Additional Shares of Your Property


STEP 1


  • Speak to your Housing Association about purchasing additional shares.
  • Get a valuation of your home from a surveyor to find out the current market value.

STEP 2


  • Instruct New Homes Law to assist in the purchase of your additional shares.
  • Arrange a mortgage with your current, or new, lender.

STEP 3


  • Receive memorandum of staircasing to sign.

STEP 4


  • When your mortgage offer has been received, we will send it to your Housing Association conveyancer for approval (if below 100%).

STEP 5


  • When your mortgage offer is approved and your signed memorandum is received by us, we can arrange to complete your purchase.

Congratulations! You have purchased additional shares of your property. 

 

Your questions answered…

Staircasing

  • Is there a limit on how many times I can Staircase?

    Normally, you are permitted to staircase up to three times, and the third time will take you up to 100% ownership. The minimum shares you can buy is specified in your lease but will generally be around 10% or 20%, unless it is the final share which may be less than the minimum share to bring you up to 100%.

  • Are there any additional costs involved in staircasing I should know about?

    Yes, there are a few additional costs that the you will be expected to pay. You will need to cover the cost of having your home valued. Also, this valuation will expire after three months, so you must complete the staircasing in this period or risk having to start again.

    There will also be legal fees to consider, such as typical conveyancing fees as well as any additional legal and mortgage fees.

    In certain circumstances, you will also need to consider Stamp Duty. The rules surrounding Stamp Duty on Shared Ownership properties are complex, but can be easily navigated by your conveyancer.

  • What are the funding options available to help me staircase my property?

    You can buy extra shares using either savings or with the help of a mortgage. If you decide upon a mortgage, then generally two options are open to you: a further advance or re-mortgaging.

What our customers say

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  • As a first-time buyer I'd had no experience before; I didn't know the difference between solicitors and conveyancers. But dealing with New Homes Law was easy, convenient and seamless.

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