A guide to Staircasing
As a leaseholder of a Shared Ownership property bought either new, or as a resale, you can buy further shares in your property. This process is known as staircasing.
An introduction to staircasing
What is staircasing?
As a leaseholder of a Shared Ownership property bought either new, or as a resale, you can buy further shares in your property. This process is known as staircasing.
Staircasing is the process of gradually increasing your ownership share in a shared ownership property. As a shared owner, you begin by purchasing a percentage of the property and can later choose to buy additional shares, eventually reaching 100% ownership (lease dependant). This step-by-step approach allows you to increase your share at a pace that suits your financial circumstances.
Complete our staircasing form using the link below
Is there any reason I wouldn’t be able to staircase?
You wouldn’t be able to staircase if:
- You have arrears on your rent & service charge account.
- There are restrictions on staircasing in your Lease. Some homes have been issued with restricted leases and there may be a cap on the maximum share you are able to own, usually around 80%. This restriction is more often found in rural areas and is because we agreed with your local authority when building the property that your home would always remain as affordable housing. This ensures the continued supply of shared ownership homes within the area for local people
- Your request to staircase is not signed and agreed by all leaseholders named on the lease.
- If you are unable to provide a valid mortgage offer or proof of savings to cover the additional share being purchased.
- Your lease restricts you from fully staircasing.
What is a Leaseholder & Freeholder?
As a leaseholder you own the property but not the land on which it is built – that is owned by the freeholder. Ownership of your property is also for a set period, which can be a number of years, decades or centuries, depending on the length of your lease.
What is the minimum share I can purchase of my property?
Your lease will determine how many times you can staircase. Different rules apply depending on when the lease was drawn up and when you have bought your home. Your lease will stipulate the minimum share you must purchase in a single transaction, which is usually 10% of the market value of your home, but can be as low as 5% on some newer leases.
There might also be a restriction on the maximum share you can purchase, if your home has been issued with a restricted lease.
For example, some leases state that you can only staircase up to three times, with the third time taking you to 100% ownership of your property. Please check your lease for more information.
Most of our leases allow staircasing to 100% ownership; however, we have also granted leases with restrictions to a maximum of 80%. It is important that you refer to the Staircasing Provisions in your lease for a confirmation of any restrictions before proceeding.
You must purchase the additional shares at a price that is equivalent to the current market value, so you will need to instruct a RICS accredited surveyor to value your property.
Do I have to staircase?
There is no obligation for you to staircase. A lot of shared owners choose to staircase to reduce their rent and eventually own the property outright at a time that works for them.
| Existing SO For leases granted before 1st April 2021 - minimum 10% share |
“New” Shared Ownership For leases granted after 1st April 2021 |
||
|---|---|---|---|
| Minimum Staircasing | Purchasing 10% with no admin fees (Legal fees apply) |
Minimum Staircasing 1% per year For the first 15 years of the lease (Fee-free) |
5% minimum (Costs apply – please see the costs section) |
There are some variations in leases, and we recommend you review this before applying as it may differ from what is above. Please note Some properties sold after the 1st April 2021 will use leases grated before 2021 as this was created when the properties were in development.
If you do decide to staircase to 100% you become an outright owner and pay no rent to us. If you do become the outright owner, you may still have to continue to pay service charges and an annual ground rent.
If you have purchased a property in 2022 onwards, you may have the new shared ownership lease which enables you to purchase 1% every year for the first 15 years of your home purchase.
If you have the new lease, you can staircase from 1% based on the House Price Index value that is provided to you annually. The benefit of using the 1% option is that it will not be necessary to instruct a solicitor, and we do not charge any admin fees. The 1% premium is all you pay.
The Benefits of Staircasing
Pay less rent
By increasing the percentage of the property that you own, you will pay less rent to us. If for example if you decide staircase to 100% ownership, you will no longer pay the rent. It is important to remember that service charges as well as ground rent (if applicable) will still have to be paid and mortgage repayments also (if any).
Full benefit from home improvements
Becoming the outright owner allows you to maximise the profit from any major home improvements. Once you own 100% you will get back the full amount of any profit on the current market value when you come to sell your home
Increase in house prices
When you decide to sell your home, the greater percentage you own, the more profit you will make, if the value of your home has increased.
More mortgage choices
If you decide to staircase to 100% of your home, you’ll be able to get a standard mortgage at a lower interest rate, rather than a shared ownership mortgage. This means that the additional monthly mortgage repayment could be less than the amount of rent you were paying originally
Freedom to make alterations
Subject to planning permission/restrictions you will be able to apply to alter your property.
Renting the property
Only once you have become the 100% owner, and not before. Subletting is not permitted under the shared ownership lease.
The Staircasing Process
The staircasing process at a glance
Step 1 Getting Ready to Staircase
Step 2 Apply to Staircase
Step 3 Let the Legal Work Begin
Step 4 Completion Day
Celebrating Full Homeownership
Download our pre-staircasing checklist
Staircasing in more detail...
Step 1
Step 1 Preparation
Financial Preparation
Know Where You Stand Financially
Before you do anything else, take a good look at your finances. Ask yourself:
- How much do I have saved?
- Can I borrow more on my current mortgage, or do I need a new deal?
- What are the extra costs I need to plan for – valuation, solicitor fees, stamp duty (in some cases) Some lenders include free or discounted legal fees as part of their staircasing mortgage deals – ask your broker what’s available.
- Does your lease allow staircasing to 100%? Check your lease, it will confirm the minimum and maximum % amount that can be purchased and in some cases how many times you are permitted to staircase.
Before embarking on the staircasing journey, assess your financial readiness. Evaluate your budget, consider potential mortgage options, and factor in associated costs such as legal fees and valuation expenses. A clear understanding of your financial landscape is crucial for a successful staircasing experience.
Before you make a formal application to staircase, it is a good idea to check your finances first, as securing the funds to purchase further share is often the lengthiest part of the staircasing process. You can do this by contacting your current or new lender to confirm they are willing to lend you the extra funds if you require further finance.
You may also wish to contact an Independent Financial Adviser (IFA) or a mortgage broker, who will assess your financial circumstances before searching across several lenders who specialise in shared ownership.
Check the market
To get an idea of how much your home might be worth in the current market, check the property portals such as Zoopla and Rightmove to see how much similar properties in your area have sold for recently. You can also contact few local estate agents to provide you with free estimate value of your home.*
*Please note, we will not accept an estate agent’s market appraisal in place of a valuation. Only a RICS evaluation will be permitted. See more on the cost of staircasing under the Costs section.
Valuations
The value of your home may change over time, affecting the cost of purchasing additional shares. Understanding how property valuations are conducted and anticipating potential fluctuations is essential for effective financial planning.
The value of an additional equity purchased will be based on the current market value of the property at the time of application to staircase. The value of your home will be determined by an independent RICS-qualified valuer.
To staircase, you’ll need a formal valuation from a surveyor registered with RICS (Royal Institution of Chartered Surveyors). This is essential – estate agent estimates won’t be accepted.
Here’s what your valuation must include:
- An in-person inspection by a RICS-registered surveyor
- At least 3 comparable sales from the past 6 months
- Consideration of any approved improvements you’ve made if you are planning on buying the remaining shares to final staircase
Valuations are valid for 3 months. Try to complete your staircasing within that time to avoid extra costs.
Professional Guidance
Engage with professionals experienced in shared ownership and staircasing. Solicitors, mortgage advisors, and housing associations like Love Living Homes can provide valuable insights and ensure that you navigate the process smoothly. Their expertise will be especially beneficial in understanding legal aspects, mortgage agreements, highlight potential challenges and speed up the process.
Made some home improvements?
Home improvements can affect the value of your home. General maintenance, repair and redecoration are not treated as improvements, but any structural improvements, additions or alterations will.
Not all improvements positively affect the value of your home, please inform the valuer at the time of instruction, so they can take these into account.
The valuation report must signify both the current price and price before works. Please note that you will only see the full benefit of all improvements if you staircase to 100% ownership.
As per conditions of your lease, all improvements must be approved with written approval from us before carrying out any major improvements to your home. You will have had to provide us with estimates, quotations, plans and any required local authority planning approval for the permission to be granted.
If you did not obtain approval from us for any home improvements, the valuer will need to disregard these from the final valuation figure.
Mortgage Availability
Check with mortgage providers about the availability of financing for staircasing. Some lenders may have specific products designed for shared ownership, and exploring these options can help you make informed decisions about your mortgage arrangement.
If you are re-mortgaging, this would also be a good time to consider staircasing. Mortgages can only be used for more funding towards the property and must not be used for decoration/debt consolidation.
You may be offered a mortgage product that provides free or reduced legal fees, please discuss this with your financial adviser / mortgage broker prior to instructing an independent solicitor.
Please note that your solicitor instructed must appear on your lenders panel of approved solicitors.
How long does the staircasing process take?
The average staircasing transaction takes approximately 2-3 months. You should aim to complete on your staircasing transaction withing the validity period of your valuation, which is 3 months from the date of issue, to avoid further costs in obtaining extension to the valuation.
We would advise you to select your solicitor before instructing us and have finances in place, so that you are ready to act promptly when you receive the valuation and approval from us. You will need to make your solicitor aware of the timescales for your staircasing transaction to complete.
Do I need a solicitor to act on my behalf?
Yes. Staircasing is a legal process, and you will need to appoint a solicitor to act on your behalf. It can be helpful to ensure you appoint a solicitor with previous experience in completing on Shared Ownership transactions.
You may decide to use the same solicitors that acted on your behalf when you purchased your home or instruct a different firm. You should make sure you get a quotation of the likely costs before you appoint a solicitor, and we recommend doing this early in the process. You can find a solicitor near to you that is qualified to offer conveyancing, on The Law Society’s website www.lawsociety.org.uk/public/for-public-visitors/ using-a-solicitor/law-society-accreditations
What happens if I want to add or remove another person to/from the property ownership at the same time as staircasing?
If you wish to add or remove another person to/from the property ownership, you will need to advise us of this at the time of your enquiry to staircase so we can add these details to our instruction to our solicitors. This transaction will include a Transfer of Equity and there will be additional legal cost for our solicitor’s fees that you will need to cover.
If you are interim staircasing (i.e. not to 100% ownership) then the person being added will need to register, and may need to undertake an affordability assessment to confirm their eligibility for the shared ownership scheme.
Step 2
Step 2 Initial Enquiry to staircase
Once you have your valuation, checked your lease, got your finances and lender (if applicable) in order, you’re ready to formally apply to staircase. Get in touch with us to register your interest in staircasing. We’ll review your lease, confirm that you’re eligible, and advise you on the minimum or maximum number of shares you can purchase based on your agreement.
This early step is important for setting expectations and planning your next move.
You’ll need to send us:
- The RICS valuation report
- A completed staircasing application form
- Full contact details for your solicitor
- Copies of your ID. You will be required to complete an anti money laundering ID check
After reviewing your application, and conducting any required checks (such as a anti-money laundering check), we’ll issue a Memorandum of Sale. This document outlines:
- The cost of the additional shares (known as the staircasing premium)
- The new rent you’ll pay
- Any applicable service charges or ground rent
This forms the official basis for your staircasing transaction.
You can register your interest for staircasing here
Step 3
Step 3 Let the Legal Work Begin
With the Memorandum of Sale in hand, your solicitor will now take over the legal process. They will:
- Liaise with our legal team to complete the paperwork
- Coordinate with your mortgage lender (if applicable)
- Work with you to agree on a completion date
This is also the time to:
- Finalise your mortgage offer (if you're borrowing more)
- Make sure all your funds are ready for completion
Step 4
Step 4 Completion Day
On completion date, your solicitor will arrange for the payment of your staircasing premium to be paid to us along with any arrears that are outstanding on your rent and service charge account at the time of staircasing. It is important that you keep your account up to date. Please note we require 5 working days’ notice to arrange the completion of your staircasing transaction. Your solicitor will contact our solicitor to arrange this. This will allow us time to provide accurate figures and arrange for the completion statement to be finalised ahead of completion.
Following completion your solicitor is responsible for contacting the Land Registry* and making any necessary amendments to the legal documents held there.
- Your solicitor will register your updated share of ownership with HM Land Registry
- If you now own 100%, you may need to pay ground rent – this depends on the terms of your lease as some apartments may need to start paying ground rent from 100% ownership. Service charges will continue to apply to apartments and houses may still need to pay towards estate costs on a monthly basis, this will be noted on the Memorandum of Sale and communicated throughout the conveyancing process.
Land Registry*
If you're buying or selling property in the UK, the change of ownership must be registered at the Land Registry, a government department that records ownership of land and property in England and Wales. Land Registry provides property owners with a land title guaranteed by the government, as well as with a title plan that indicates the property boundaries. Once a property is entered into the register, the Land Registry records any ownership changes, mortgages or leases affecting it.
Congratulations! Your staircasing has completed.
What is a Memorandum of Sale?*
Memorandum of Sale (MOS) is a document recording the prospective buyer’s interest in purchasing the property and the seller’s terms of the sale. It relates to the ‘sale agreed’ step when purchasing a property. While it’s not a legally binding contract, it acts as written confirmation that a price has been agreed and declares the intention of both parties to complete the sale. The document will include any special conditions or remarks that deviate from the standard conditions of sale
You can either buy additional shares in tranches known as Interim Staircasing or you may decide to purchase the remaining shares in one transaction to take you straight up to 100% (Final Staircasing).
Other Things to Know
Other Things to Know
Adding or Removing Owners
If you’re planning to change the names on the lease – such as adding a partner or removing a co-owner – let us know as early as possible.
Here’s what to expect:
Extra legal work may be needed
Additional fees might apply
If you’re not staircasing to 100%, eligibility checks may be required for the new party to ensure that they are eligible for the Shared Ownership Scheme
How Long Will It Take?
Every staircasing case is different, but on average, the process takes 2 to 3 months from start to finish.
To help keep things on track:
- Book your valuation as soon as possible
- Choose an experienced solicitor
- Respond to emails and requests promptly
- Always aim to complete your staircasing within the 3-month validity
- period of your valuation to avoid needing (and paying for) a new one.
Costs Involved
The cost of staircasing
Every time you staircase, you will have expenses to pay. As well as the initial valuation costs you will also be responsible for meeting:
- Valuation costs (and any other costs incurred in connection with the staircasing transaction)
- Your legal fees
- Mortgage arrangements fees
- Stamp duty may apply
- and additional valuations (if required).
It is important to consider all the costs involved before deciding if staircasing is right for you at the beginning of the staircasing process. It is advisable to staircase in one tranche if you can afford to, so you keep these costs to a minimum. We highly recommend seeking professional financial advice before undertaking any staircasing decisions.
These costs are outlined in more details below:
| Cost | Fee |
|---|---|
| Independent Valuation | Variable between £240-£420 plus VAT. Extension letters (after 3 months) from £90 to £150. /td> |
| Your appointed solicitor fees | Varies depending on the solicitors used. Your appointed solicitors will provide you with an exact quotation. |
| Mortgage Administration fees | Varies depending on the lender. |
| Independent Financial Advisor fees | Varies depending on the IFA used. When looking for the best mortgage broker fees, make sure brokers are not asking for a fee that is higher than 1% of your mortgage. |
| Monthly mortgage payments. Mortgage costs, interest charges, interest rates and conditions will be outlined in your mortgage quote. It is important to read this carefully. |
Refer to your lender for confirmation on any fees payable. |
| Stamp Duty | You may need to pay a stamp duty. Please discuss this with your solicitor. |
Prices are reviewed annually however they are subject to change. Please speak to the Resales teams for actual costs before proceeding. Please ensure you have savings or access to funds to cover these costs
Instructing the valuation
Panel of registered surveyors
Below is a list of surveyors who are qualified and registered with Royal Institution of Chartered Surveyors (RICS). The surveyors are independent, and we have no influence over the valuation figure provided by them. The surveyors listed are familiar with shared ownership schemes.
If you decide to choose a surveyor not listed on our panel, they must appear on the RICS Surveyors website. You can search for a surveyor using the RICS website RICS Find a Surveyor LINK .
Your valuation is valid for 3 months from the date of issue. It is your responsibility to ensure you have a valid valuation throughout the process until completion date.
| Company | Contact Details | Valuation cost (prices include VAT) | Extension cost (after 3 months) (prices include VAT) |
|
|---|---|---|---|---|
| Extension Letter no change in Value | Extension Letter Change in Value | |||
| Jenner Jones | 01892 726585 / 01892 726581 | £390.00 | No fee | £114.00 |
| Copeland & Yussuf | 0203 0058660 | £264.00 | 1 extension free | £120.00** |
| Rapleys | 0370 7776292 | £900.00 | £360.00 | £360.00 |
* No fee if Memorandum of Sale (MoS) has been issued matching the original valuation. MoS will need to be presented.
** £120 (inc VAT) for a desktop valuation (extension to original) in which the property would be revalued but not reinspected and would provide a further 3-month validity.
Celebrating Full Homeownership
Celebrating Full Homeownership
Reaching 100% Ownership
The culmination of your staircasing journey is reaching 100% ownership. Celebrate this achievement as you officially become the sole owner of your home. Enjoy the benefits of full homeownership, including complete control over your property. You will still have to pay the service charge and may have to pay an annual ground rent depending on your lease/property.
Future Planning
With full homeownership achieved, consider your future plans. Whether it’s staying in your beloved home or exploring new opportunities. Having complete control over your property allows you to shape your future according to your aspirations.
What happens to my rent and service charges after completion?
We will adjust your account to show the increased share you own in your home. We will refund any monies owed to you, send confirmation of your new charges and/or close your account if your staircasing transaction requires us to do so. Please note that rent reviews occur in April, you can find out more on our rent review page.
What you need to know for your building insurance after completion
If you become the 100% owner of a house, you will no longer be covered under our block buildings insurance policy from the date your staircasing transaction is completed. You must ensure that you have a building insurance policy in place at completion.
If, however, you become a 100% owner of a flat, you will still be covered under our block insurance policy and contribute towards this with your monthly service charge. If we do not own the freehold of the block, you will then be covered under the freeholder’s block building insurance policy.
