Everyone wants to own a home of their own one day, and Shared Ownership is an excellent starting point. However, the journey doesn’t stop there! Once you have owned your Shared Ownership home for a certain amount of time, you will then be given the opportunity to buy more equity in your home by ‘staircasing’.

Wondering how Shared Ownership can transition into full home ownership? Check out our step-by-step guide to staircasing:

What is staircasing?

Staircasing is a process where you buy more shares in your Shared Ownership home on a step-by-step basis - hence the term staircasing. For example, if you own 20% of your Shared Ownership property, you can then buy another 20% share, taking your ownership up to 40%. In some cases, you may have to own your home for up to 1-2 years before you have the option to staircase your property. If you do wish to staircase your home, you will have to buy a share that is at least 10% of the value of your home.

Benefits of staircasing:

Giving you the chance to increase your stake in your property, staircasing is an attractive option for many reasons. Here are some of the key perks of staircasing your Shared Ownership home:

You’ll pay less rent

The biggest advantage of staircasing is that you reduce the amount of rent you pay in the long-run. Buy more shares in your property, and your monthly rent bill will start looking a lot lighter, depending on what percentage you own. You can expect to pay no more than 3% of the share owned by the housing association you bought with.

You can sell a greater value of your home

Should you one day wish to move home, staircasing makes the selling process much smoother. After all - the more of the property you own, the more money you can get from selling. If you own a share of your home, you can only sell on to buyers who pass the eligibility requirements of Shared Ownership. However, once you own 100% of your home, you will have full freedom to sell it on the open market!

You’ll be one step closer to full home ownership

While Shared Ownership gives you an affordable route to the property ladder, staircasing brings you closer to your dream of full home-ownership. Free from your obligations as a tenant, you’ll be granted greater security, while reaping the benefits of your property’s rising value.

Bedroom in Shared Ownership home at The Scene, Lewisham

How to staircase in Shared Ownership

Before you can enjoy the benefits of your new shares, you have to inform your housing provider of your intentions. You’ll need to consult an Independent Surveyor, who can give you an up-to-date valuation of your property, and give you an idea of what share you can afford. With your finances all in order, you then need to complete a Staircasing Enquiry Form for your housing provider to review.

How much does it cost to staircase in Shared Ownership?

Usually, it costs around £2,000 to buy an additional share of your property. However, there are also plenty of other costs that you should consider before you commit to buying more shares. This could include paying for surveys, legal fees, mortgage fees and even stamp duty (depending on the value of your share!). Whatever you do, don’t go through the staircasing process without assessing your finances!

Is staircasing worth it?

If your financial circumstances allow it, staircasing your Shared Ownership home is a no brainer. As well as bringing yourself closer to 100% ownership, you’ll pay less rent, and make it easier to sell your property in the future. As long as you are aware of the various costs, staircasing is a logical next step to full home ownership. However, you also don’t need to feel obligated to buy more shares - the choice is yours.