Staircasing Your Shared Ownership Home - A Complete Guide
A plain English guide for shared ownership leaseholders in England
1. What is Staircasing?
When you bought your shared ownership home, you purchased a share of the property, perhaps 25%, 40%, or 50%. You pay a mortgage on the share you own, and you pay rent to your housing association on the share you do not yet own.
Staircasing is the process of buying additional shares in your home over time. Each time you buy more shares, you own more of your home, your rent goes down, and you build more equity.
Ultimately, if you buy enough shares to reach 100%, you own your home outright and your rent stops altogether (in most cases).
Think of it like climbing a staircase: each step you take brings you closer to full ownership.
2. How Does Staircasing Work?
The Basics
Your lease sets out the rules for staircasing. Every shared ownership lease is different, so the first step is always to read your lease or ask your housing association for a copy.
When you staircase, you are buying an additional percentage of the property from your housing association. The price you pay is based on the current open market value of your home at the time you staircase, not what you originally paid for it.
- If your home has gone up in value, you will pay more per share than you did originally.
- If your home has gone down in value, you may pay less.
What is a Tranche?
Each time you buy additional shares, that purchase is called a tranche. Most leases allow staircasing in tranches of at least 10% at a time, though some older leases may set different minimums.
Two Types of Staircasing
| Type |
What it means |
| Intermediate staircasing |
Buying additional shares but not yet reaching 100%. |
| Final staircasing |
Buying the final shares to reach 100% full ownership. |
Both follow largely the same process, but reaching 100% has additional considerations.
3. Am I Eligible to Staircase?
1. Check Your Lease
- The minimum tranche size you can buy
- Any restrictions on staircasing
- Notice requirements for your housing association
2. Are You Up to Date With Payments?
Most housing associations will not allow staircasing if you are in arrears with rent or service charge. Clearing arrears before you begin usually avoids delays.
3. Designated Protected Areas
Important note: If your home is in a Designated Protected Area (sometimes called a rural exception area), your lease may include restrictions that affect sales and in some cases staircasing. Check with your housing association if unsure.
4. Lease Vintage - Older vs Newer Leases
Leases granted on or after 1 April 2021 (under the Affordable Homes Programme) may allow more flexible staircasing, including smaller increments in some cases. Older leases usually follow minimum 10% tranches.
If you are unsure which lease type you have, ask your housing association or your solicitor.
4. The Step-by-Step Process
Step 1: Check your lease and speak to your housing association. They will confirm eligibility, process, timescales, and forms.
Step 2: Get an independent RICS valuation. This sets the current market value and therefore the share price.
Key point: A valuation is usually valid for three months. If the transaction does not complete in time, a new valuation and fee may be required.
Step 3: Agree the share price. Example: £300,000 value x 25% share = £75,000.
Step 4: Arrange finance. Re-mortgage, cash, or a mix of both.
Step 5: Instruct a solicitor. Your solicitor handles legal documents, lender liaison, and Land Registry updates.
Step 6: Exchange and complete. You pay for the new share, your ownership rises, and rent reduces accordingly.
5. What Will It Cost Me?
- RICS valuation fee: typically £300 to £600.
- Your solicitor's fees: usually £500 to £1,500 plus VAT.
- Housing association legal fees: often £300 to £600 plus VAT.
- Housing association administration fee: varies by provider.
- SDLT: depends on your original election and cumulative ownership.
- Mortgage arrangement fees: may apply on re-mortgage.
SDLT is complex: if you elected to pay SDLT on full market value at the outset, further SDLT is generally not due on staircasing. If you elected to pay on the initial share only, SDLT may become payable when cumulative ownership reaches or exceeds 80%.
6. What Happens to My Rent After Staircasing?
Each time you buy more shares, your rent reduces proportionately.
Example: If you own 40% and buy another 25%, your ownership becomes 65%, and rent is then charged on the remaining 35%.
Service charge and any applicable ground rent are separate from shared ownership rent and generally continue.
Ground rent note: for leases granted on or after 30 June 2022, ground rent is generally capped at zero under the Leasehold Reform (Ground Rent) Act 2022.
7. Staircasing to 100% - What You Need to Know
Will You Own the Freehold?
For most flats, reaching 100% means owning 100% of the leasehold, not the freehold.
How Long Is Your Lease?
Critical check: a lease with fewer than 80 years remaining can be significantly harder and more expensive to extend.
Once you own 100%, you may have statutory lease extension rights (subject to qualifying conditions), but costs can be high if the lease is already short.
Your Rent Stops (in Most Cases)
When unowned share reaches zero, shared ownership rent generally ceases.
Can You Buy the Freehold?
Houses may allow freehold acquisition after 100%. Flats cannot usually buy freehold individually, but collective enfranchisement with other leaseholders may be possible.
8. Common Pitfalls to Watch Out For
- Valuation window expiry: delays can mean paying for a fresh valuation.
- Rising property values: shares may cost more than expected.
- Short lease term: can impact remortgage options and future value.
- Lender consent: may be required and can add time.
- Subletting restrictions: often tighter below 100% ownership.
- Under-budgeting: include valuation, legal, SDLT, and lender costs.
9. Frequently Asked Questions
Can I staircase more than once?
Yes. Most leases allow multiple staircasing transactions until you reach 100%.
What if my home has gone up a lot in value?
You pay more per share, but you are also buying more of an asset that has appreciated. Consider taking financial advice.
Do I need a solicitor?
Yes. Staircasing is a formal legal transaction and should be handled by an experienced solicitor.
How long does the process take?
Typically 6 to 12 weeks, depending on lender, housing association, and legal progress.
What if I disagree with the valuation?
You can instruct your own RICS surveyor and discuss options with your solicitor.
Can I staircase in negative equity?
It is usually difficult or impractical. Take financial advice if this applies.
10. Your Next Steps
If you are thinking about staircasing, this is a practical route map:
- Read your lease, especially the staircasing provisions.
- Contact your housing association for their process guide and fee schedule, then request their offer route.
- Instruct a solicitor once the share price is agreed.
- Speak to a mortgage broker early if remortgaging is required.