Staircasing: The Path to Owning 100% of Your Shared Ownership Home
Please note this information relates to shared ownership in England only.What is Staircasing?
If you purchased your home using the Shared Ownership scheme, you can buy additional shares, usually in increments of 10%, until you own the majority or all of your home.
Some older leases set the minimum amount for shares at 25%, and newer ones may allow you to buy as little as 5% at a time. There are some instances where you may be able to buy 1% shares.
Why is it called Staircasing?
This process is called staircasing because it allows you to own more of your home in steps or stages as you earn more money or can afford a bigger mortgage. Picture a set of stairs and each step you take is a share or shares. Once you reach the top, you own your home outright.
Please note that in some instances, where a home is in a designated protected area, you’ll only be able to own up to 80% of your home. Check with your landlord before you buy.
How are the value of new shares calculated?
Each time you wish to purchase more shares, these will be based on the value of the home at the time of buying the shares, and not the value of your home when you first bought it.
You will need to pay for a professional valuation of your property to determine the value of the shares before you can buy them.
What funds can be used to buy additional shares?
You can fund the purchase of additional shares through:- Extending your existing mortgage
- Remortgaging
- Paying for the share(s) in full using savings
What are the benefits of buying more shares?
- Buying more shares in your home will mean paying less rent to the housing association or local authority that owns the other portion of your home.
- The larger your share, the more equity you will have to use against your next home purchase.
- Eventually you could own 100% of your home, so you will not have to pay any rent to a landlord.
Are there any downsides to buying more shares?
- If you purchase your new shares against your mortgage, your mortgage payments will increase.
- You’ll have to pay Stamp Duty when you own 80% of your home.
- You may need to wait for a certain amount of time after initially buying your home before you can buy additional shares.
- You’ll need to factor in the cost of a professional valuation each time you wish to buy more shares.
- There may be an administration fee applicable when buying more shares, payable to your landlord.
- You may need to pay for legal advice during the transaction process.
Other considerations
Buying 1% shares
For newer purchases (after 1 April 2021) you may be able to buy shares of 1% each year for the first 15 years. The value of these shares will be based on the value of the home when you first bought it. There’s no administration fee on purchases of 1% shares.
Improving the property
If you gained written permission to make improvements to your home from your landlord, the value of the share will be based on the home’s value without the improvements. If you did not have written permission, your share prices will be based on the value with the improvements, which is likely to be higher.
More on Shared Ownership
This article is for informational purposes only. Please speak to a mortgage advisor, Housing Association or a mortgage lender for further information.
Date posted April 16th, 2025
