What Is Staircasing? A Guide for Shared Ownership Homeowners

Staircasing is the process of buying additional shares in your Shared Ownership home.

When you first purchase a Shared Ownership property, you buy a percentage of the home and usually pay rent to your housing provider on the remaining share with the option to purchase additional shares over time.

How does staircasing work?

The exact process can vary depending on your property and lease, but it will generally involve a few key stages.

First, you should contact your housing provider to let them know you’re interested in staircasing and to understand the requirements that apply to your home.

Your property will then usually need to be valued by an appropriately qualified independent surveyor. This valuation helps establish the current market value of the property and, in turn, the cost of the additional share you want to purchase.

You’ll also need to decide how you’ll fund the purchase. This might involve savings, changes to your mortgage or a combination of the two. If you need additional borrowing, speaking to a mortgage adviser can help you understand the options available.

A solicitor will normally be required to complete the legal side of the transaction.

How much does staircasing cost?

The price you pay for additional shares is generally based on the current market value of your home, rather than the amount it was worth when you originally bought your share.

As a simple example, imagine your home is valued at £200,000 and you want to purchase an additional 10% share. That share would be worth £20,000, subject to the applicable valuation and terms.

There can also be other costs involved, such as valuation fees, legal fees, mortgage-related costs and potentially tax. It’s important to understand the full cost before going ahead.

What are the benefits of staircasing?

One of the main benefits is that you’ll own a larger proportion of your home. As your ownership share increases, the rent you pay on the remaining share will generally reduce.

If you are able to staircase to 100%, you may no longer have Shared Ownership rent to pay, although other property-related charges may still apply.

Increasing your ownership can also mean that you benefit from a greater proportion of any increase in the property’s value if you later decide to sell. However, property values can fall as well as rise.

Do I have to staircase?

No. Staircasing is an option rather than an obligation for most Shared Ownership homeowners.

You might choose to increase your share when your financial circumstances allow, or you may decide that keeping your existing share works better for you.

Before making a decision, it’s worth considering your household finances, mortgage costs and the fees associated with staircasing.

Thinking about staircasing with Auxesia Homes?

Staircasing can be an important next step in your homeownership journey, giving you the opportunity to own a greater share of the place you call home.

Every homeowner’s circumstances are different, and the rules and costs can vary between properties. If you own a Shared Ownership home with Auxesia Homes and are considering staircasing, get in touch with our team to find out more about the process and the options available for your home.