Fact vs fiction: Shared Ownership staircasing

Thinking about buying a Shared Ownership home? In that case, you’ll want to know more about staircasing to help you decide whether the scheme is right for you. 

Staircasing is the process of increasing your owned share. It’s actually much more flexible than you may think, and it gives you control over how much of the home you own. 

If you’d like to understand the nuances of the process with clarity and confidence, we’re here to help. Let’s demystify Shared Ownership staircasing by separating fact from fiction. 

Fiction: You don’t have a choice when it comes to staircasing 

Fact: Staircasing is completely optional 

There’s no obligation to staircase your Shared Ownership home; whether you do is entirely your choice. You can buy your initial share and only consider staircasing if, or when, your finances allow. 

If you want to achieve full ownership, you can staircase over time. Most Shared Ownership homes allow staircasing to 100%, but some are capped at 80% due to planning permissions. You should always check if there are any staircasing restrictions on the property before buying it.  

Fiction: You’ll always be paying rent 

Fact: Rent reduces as your share increases 

When you buy a Shared Ownership home, you’ll pay below-market rent on the share you don’t own to your housing provider. The higher your share, the lower the rent will be. If you staircase to 100%, you’ll stop paying rent to your housing provider as you’ll become the outright owner. 

Fiction: You can only sell if you staircase to 100% 

Fact: You can sell your Shared Ownership home whenever you like 

Life happens and circumstances change, and sometimes this requires you to move on. With Shared Ownership, you’re not tied down because you have a mortgage. Just like traditional homeownership, you can sell your Shared Ownership home whenever you like, regardless of your share value.  

In most cases, your housing association will have a nomination period to find a suitable buyer. If they don’t find a buyer during this time, it’s likely that you’ll be able to sell the property privately or with your choice of estate agent. 

Rest assured, you don’t need to staircase to 100% before selling – unless you want to, of course. In this case, you can sell on the open market or explore back-to-back staircasing, which would enable you to do this.  

Fiction: Staircasing is overly complex 

Fact: Staircasing is a clear process with fixed steps 

The introduction of the new Shared Ownership model in April 2021 brought changes to the staircasing process. If your lease falls under this model, you have the option of ‘gradual staircasing’ by 1% each year for 15 years from the date of purchase, usually without needing an independent valuation and with significantly reduced fees, though some legal costs may apply. The minimum amount that you can staircase in the traditional way (above but not including the 1%) is 5%. This also applies to Shared Ownership resale properties, whereby the existing lease is transferred to a new owner. 

You can usually buy additional shares at any time if you’re increasing your share by 5% or more. This is called ‘standard staircasing’. Here’s a brief rundown of the standard staircasing process: 

1. Let your housing provider know you want to staircase. 

2. Arrange a property valuation with a surveyor who’s registered with the Royal Institute of Chartered Surveyors (RICS). 

3. Arrange finances for buying the additional share. 

4. Instruct a solicitor to handle the legal work. 

5. Complete the purchase of the additional share. 

Fiction: There are too many hidden costs 

Fact: Shared Ownership staircasing costs are disclosed upfront 

Alongside the purchase price of the additional share, each time you staircase, you will incur costs. As a ballpark figure, we recommend having around £2,000 saved for the process, but this will vary on a case-by-case basis. Staircasing costs you may need to budget for include: 

• Surveyor fees.

• Administration fees.  

• Legal fees. 

• Mortgage fees. 

• Stamp duty (if applicable). 

Fiction: You’ll always need a mortgage to buy additional shares 

Fact: You can buy additional shares outright or with a mortgage 

When gradually staircasing, it’s expected that the additional 1% share will be funded through savings, as a share of this size is unlikely to be a large monetary value.  

When staircasing via the standard method, the additional share can be paid for with savings or a mortgage, giving you flexibility based on your financial circumstances. Most of the time, staircasing involves extending your existing mortgage or remortgaging altogether. 

In either case, your lender or specialist broker with staircasing expertise will be able to advise you further. 

Fiction: You can’t decorate or have pets until you own 100% 

Fact: You can decorate and have pets if the lease allows 

Shared Ownership is still homeownership, so you’ll have more agency over your home than you would have as a renter. From paint colours to pictures on the walls, you can decorate your home as you wish. Just make sure to check your lease terms for any restrictions, as some alterations or structural changes may require consent from the housing association.  

In some cases, pets are permitted with the housing provider’s consent, regardless of your share value. If having a pet is important to you, check the housing provider’s pet policy and the terms of the lease before committing to the property purchase. 

Find Shared Ownership homes in your area 

Now that you have a better understanding of the staircasing process, you can pursue Shared Ownership with confidence. Use our property portal to find available Shared Ownership homes in your area and create an account to save your search, register for alerts and enquire about properties.