Staircasing
What is staircasing?
Shared owners are entitled to increase their ownership in a property by purchasing additional shares; this process is known as ‘staircasing’.
Usually the minimum percentage you can staircase by is 10%, but please confirm this with your registered provider.
Unless there is a restriction in your lease you can staircase until you own 100% of your property.
Am I eligible to staircase?
You can staircase providing you meet the following criteria:
- Your rent account is up to date (and this must stay up-to date throughout the process)
- You have owned your initial share in your property for the minimum length of time required by your registered provider, often 12 months (please note some allow staircasing immediately)
What are the benefits of staircasing?
- As you purchase more shares your rent will be reduced
- Once you own 100% of the property, you will no longer be required to pay rent (although you may still need to pay services charges for some types of property)
- The larger the share of the property you own, the more you will benefit if the property increases in value
How much will it cost me to staircase?
The price you pay will depend on the percentage of the property you wish to purchase and the value of your home at the time you wish to buy.
Before you decide to staircase you should ensure you are able to afford to pay the following:
- Any increase to your monthly mortgage payments and associated fees (if applicable). We advise you speak to an independent financial advisor
- Valuation fees (approximately £100-200)
- Solicitor's fees – you will need to appoint a solicitor to act on your behalf
Details of valuers*, solicitors and independent financial advisors can be downloaded here:
Independent Financial Advisors list
*Some registered providers may appoint a valuer on your behalf, with the fee payable up front.
How will I know how much I will pay for the share I wish to purchase?
The amount you pay will depend on the value of the property at the time you want to buy the additional share. Therefore you will be required to pay for a valuation report. For example, if your property is valued at £100,000 and you wish to purchase 10% you will pay £10,000.
How long is the valuation valid for?
Generally, the valuation report is only valid for 12 weeks from the date it was written. If the exchange of contracts takes longer than 12 weeks, you will need to obtain an updated valuation report. There may be an additional charge for this.
What will happen if the updated valuation report values the property differently to the original valuation?
If the valuation changes, the purchase price will be recalculated regardless of whether the valuation has gone up or down.
Click here to download a pdf document about staircasing.
If you have any queries about staircasing please contact the Time2Buy team on 0845 6042942 (or email enquiries@time2buy.org.uk).
Alternatively you can get in touch with your registered provider directly.
