As a Shared Owner, you may wish to increase the shares you own in you home. This is known as staircasing.
Every lease is different, and some are restricted in terms of the level of ownership, so it is important to check your lease with us before committing to buying further shares.
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Who is eligible?
Most Shared Owners have the right to staircase.
Your lease will outline if and how you are able to staircase. Most leases will allow you to staircase to 100%, but if you hold a restricted lease and can only staircase to 80%, you won't be eligible to buy the remaining shares and will reman be a Shared Ownership leaseholder.
Why staircase?
The level of rent you pay relates to the share that we own. The higher the share you own, the less rent you pay to Stonewater. Your rent will go down in proportion to the share you buy and you’ll pay less rent each time you staircase further.
If you are able to staircase to 100%, you will no longer pay us rent, but there may still be ongoing service and estate charges.
We recommend you staircase in large increments, if possible, to avoid the associated costs each time.
What to do before applying
First, we recommend that you estimate the current value of your home. This will give you an idea of how much you’ll pay for the extra share. Local estate agents or online sites such as Zoopla and Rightmove can help you do this.
Any staircasing transaction will need a RICS (Royal Institute of Chartered Surveyors) valuation, but we recommend just assessing the likely cost before committing to a formal valuation.
We also recommend checking with your mortgage lender to see if you can increase your mortgage to allow you to buy the extra share, or whether you can get a new mortgage with a different lender.
It is also worth checking with a financial or mortgage advisor to see what is affordable for you.
We can arrange for you to speak to an independent mortgage advisor for a quick, free chat. Get in touch with us on commercialservices@stonewater.org for more information.
Ready to staircase? Apply now
See the full steps to staircasing and find the application form in this guide. Please submit your completed guide to commercialservices@stonewater.org
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FAQs
Are there costs associated with staircasing?
Staircasing does come with associated costs.
We've outlined the main costs below:
- The value of the extra share you are buying - known as the staircasing premium
- RICS Valuation - you must pay the valuer, even if you decide not to buy the extra share
- Your solicitor’s fees
- Our administration fee
- Stamp Duty (where applicable)
- Mortgage costs and associated fees
- Any arrears or rent/service charge due on completion
- Where there is a third party management structure on the scheme, the management company may have specific charges and requirements that your solicitor will need to advise you on.
These are the main costs, and there may be further fees, particularly if there is a management company involved.
Please check with your solicitor at the start of the process what these may be.
What happens upon completion?
We’ll reduce your rent from the day you buy the extra shares.
You only pay rent on the part of your home that we own.
If you buy all the remaining shares, up to 100%, and become an outright owner of your home (whether leasehold or freehold), you’ll no longer pay rent but may still need to pay ground rent and service/estate charges.
What is 1% staircasing?
Certain leases allow customers to buy an additional 1% each year for the first 15 years. This means you can gradually increase your ownership in affordable chunks.
If you are eligible for 1% staircasing, each year we'll provide you with an additional percentage value notice on the review date of your lease.
This outlines the cost of purchasing an additional 1% and the rent you would pay if the 1% was purchased. This notice is based on Land Registry HPI data, as outlined in the lease.
This notice is valid for 3 months, so it is important to contact us within this timeframe if you wish to purchase the additional 1%. The cost of this can change after the notice expires.
If you have received a notice and would like to purchase the additional 1%, please return the acceptance included with the notice, along with proof of how you intend to fund your purchase and certified ID for all parties to the lease, to commercialservices@stonewater.org
If you would like to purchase an additional 1% after the notice has expired, we can produce a new notice - just contact commercialservices@stonewater.org
For more information, including how often you can staircase and how to get a RICS Valuation, check out our guide.
Here you'll also find the application form, which can be completed and sent to commercialservices@stonewater.org