Staircasing

Through the staircasing process you can buy a higher share in your home and pay less rent.

Staircasing is where the part-owner of a Shared Ownership property decides to purchase further shares of that property from a housing association.

As you buy more shares, you start paying less rent on the remaining share that we own. 

Remember that each instance of staircasing comes with its own valuation and legal fees, meaning it’s generally advised for buyers to purchase the largest share they can afford at the time.

There are generally two forms of staircasing for buyers - interim staircasing and final staircasing.

*Staircasing to 100% will depend on the terms of your lease. 

What is Interim Staircasing?

Interim staircasing is the process of purchasing property shares that increases the amount owned by the buyer, excluding achieving 100% ownership. For example, staircasing from 25% to 50% ownership. After an instance of interim staircasing, the buyer remains a shared owner. 

Prior to an instance of interim staircasing, a valuation is carried out and the value of the share is based on the valuation. Once the share is purchased, there is a simultaneous reduction in the amount of rent that the shared owner pays to the housing association, since you only pay rent on the share you don’t own.

This is the most common form of staircasing and you can build up your overall percentage of ownership as much or as little as you want.

What is Final Staircasing?

Final staircasing is the process of buying the final segment of shares that takes you to full ownership.

Once you become the full owner - if the property is a house and the previous owner is a housing association - the freehold or the leasehold interest will be transferred to you.

If the property is an apartment, the property remains a leasehold. The payable rent, however, is still reduced to zero. Certain elements of the lease also change to ensure it’s no longer considered a Shared Ownership lease. Subject to the terms of the lease or transfer, service charges may remain payable.

The amount that you pay - similar to interim staircasing - is based on the market value of the property which is determined by the valuation.

How do I pay for staircasing?

A shared owner can purchase an additional share with either savings or through the use of a mortgage.

If you pay for the share with a mortgage, this may be an advance from your mortgage lender or a new loan through the remortgage process with another lender.

In interim staircasing, the association has to approve the mortgage offer and the amount you borrow can’t be more than the amount you’re paying for the additional share.

In the case of final staircasing, the mortgage does not have to be approved by the housing association and there’s no limit on the amount you can borrow.

Frequently Asked Staircasing Questions