Happy children going upstairs, family with boxes moving in house Happy children going upstairs, family with boxes moving in house

How does the Shared Ownership staircasing process work?

One of the biggest advantages of Shared Ownership is that your homeownership journey doesn’t have to stop once you’ve bought your first share.

As your financial circumstances change, you have the option to purchase additional shares in your home over time – a process known as staircasing. Whether you’re hoping to own more of your home gradually or staircase to full ownership in one go, understanding how the process works can help you plan your next steps with confidence.

What is staircasing?

Staircasing allows Shared Owners to buy additional shares in their home after they’ve moved in. With L&Q, you can usually purchase extra shares in multiples of 5% or 10%, depending on the terms of your lease.

If you’re buying additional shares but not taking ownership to 100%, this is known as interim staircasing. Most Shared Owners can staircase up to three times before reaching full ownership, although it’s important to check your lease, as some homes are subject to different arrangements.

Some Shared Ownership homes are offered under the government’s new Shared Ownership model, which provides even greater flexibility for buyers. Depending on the terms of the lease, homeowners may be able to staircase by as little as 1% each year for the first 15 years, alongside the option to purchase larger shares of 5% or more. The new model also includes an initial 10-year repair period, during which the landlord supports the cost of certain essential repairs, helping to reduce the costs of homeownership in the early years.

Discover Bold Street Pavilion, where you can buy a home through the new Shared Ownership model with an initial share from just 10%.

New Homes in Trafford

How does the staircasing process work?

Before buying more shares, you’ll need to make sure you can comfortably afford the purchase, along with any legal or mortgage costs involved. Your rent account will also need to be up to date before your application can progress.

You’ll need to arrange for your home to be valued by a surveyor registered with the Royal Institution of Chartered Surveyors (RICS). You can use one of our recommended independent surveyors at discounted rates or choose your own surveyor, if they meet our criteria. This independent valuation establishes the current market value of your home, which is then used to calculate the cost of the additional shares you’d like to purchase.

Via email, share your full valuation report, your Home Improvements form (if relevant), a short note confirming your intent to buy more shares and your contact details and property address.

To manage the legal work and, if you’re using a mortgage to fund the purchase, make the necessary arrangements with your lender before completion.

We’ll issue a Memorandum of Staircasing to record that you have bought more shares – this document needs to be signed by you and us. If you reach 100% of ownership and currently pay a service charge, your solicitor will let you know if you need to continue paying us or the third-party agent directly after completion. If you don’t pay a service charge, you no longer need to pay us rent or have further communication with us.

WM Staircase

How much does staircasing cost?

The cost of staircasing will vary depending on how many additional shares you’re buying, the value of your home and your individual circumstances.

Alongside paying the current market value for the additional share, there are a number of other costs to consider. These typically include a RICS valuation, solicitor’s fees, mortgage fees (where applicable), L&Q’s administration fee and, in some cases, Stamp Duty Land Tax. Your solicitor will be able to advise whether stamp duty applies to your purchase.

It’s also worth remembering that your RICS valuation is only valid for a limited time. Under the terms of your lease, your staircasing transaction must usually be completed within three months of the valuation date. If the transaction takes longer, you may need to pay for an updated valuation.

 

Marta & Monika enjoying a drink

When is the right time to staircase?

There isn’t really a single answer to this question. The right time to staircase depends entirely on your personal circumstances. Some buyers choose to increase their share after receiving a pay rise, building up savings or securing a new mortgage deal. Others are happy remaining at their original share for many years.

One common misconception is that Shared Owners have to staircase to 100% ownership. In reality, staircasing is completely optional. Many people choose to purchase additional shares gradually over time, while others decide not to staircase at all. The flexibility to make that decision when the time feels right is one of the key benefits of Shared Ownership.

Thinking about buying more shares?

If you’re considering staircasing, your lease is the best place to start, as it contains the full details of how staircasing works for your home, including whether any restrictions apply.

The L&Q team is also on hand to guide you through the process and answer any questions you may have, helping you understand your options and plan your next steps with confidence.

Find out more about Shared Ownership and staircasing by visiting https://www.lqgroup.org.uk/your-home/homeowners/staircasing.