Reverse staircasing for shared owners
Find out more about what reverse staircasing is and how it works.
We understand that circumstances can change. If you are experiencing serious financial difficulties, building safety issues are preventing you from selling, or your home is no longer suitable because of a significant medical need, reverse staircasing may be an option.
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What is reverse staircasing?
Reverse staircasing allows you to sell some or all of your share in your shared ownership home back to Stonewater.
There are two types of reverse staircasing:
Partial reverse staircasing: Stonewater buys part of your share, reducing the percentage of the home that you own.
Full reverse staircasing or buyback: Stonewater buys your entire share.
If Stonewater buys part of your share, the percentage owned by Stonewater will increase. This means the rent you pay on Stonewater’s share is also likely to increase.
Reverse staircasing is only considered in exceptional circumstances and after other reasonable options have been explored. It is not an automatic right, and submitting an application does not guarantee that it will be approved.
When may Stonewater consider reverse staircasing?
Stonewater may consider an application in the following circumstances:
Financial difficulty
You are experiencing serious financial difficulties and are at risk of losing your home. (Homes England guidance will be considered).
Building safety or remedial work
Building safety or remedial work is preventing you from selling or re-mortgaging your home through the usual routes.
Significant medical impact
Your home is no longer suitable because of a significant medical condition or change in your needs, and remaining in the home is having a serious impact on you.
We will consider each application individually. We will also need to consider any restrictions in your lease, funding conditions, planning requirements or section 106 agreement that may affect what we can offer.
What options must be considered first?
Reverse staircasing is a last-resort option. Before we consider an application, we will work with you to understand whether there are other reasonable ways to address your circumstances.
Depending on your situation, these may include:
selling your share through the usual shared ownership resale process
discussing alternative arrangements with your mortgage lender
re-mortgaging or changing the terms of your mortgage
obtaining independent debt, benefits or financial advice
moving to a more affordable or suitable home
entering into a short term flexible payment plan with Stonewater
considering adaptations to your home where this may meet your needs
exploring whether subletting is possible, where permitted and approved.
Full reverse staircasing will only be considered after all other reasonable and practical options have been explored.
If Stonewater cannot support your application, we will explain the reasons for the decision. Where possible, we will also help you understand the other options available and direct you to appropriate sources of advice and support.
Criteria we will consider
The criteria below will help us assess your application. Meeting one or more of the criteria does not guarantee approval.
We will consider:
your individual circumstances
the evidence you provide
whether other reasonable options have been explored
the terms of your lease
any legal, planning or funding restrictions
the financial implications for you and Stonewater; and
the funding available.
We will consider applications fairly and consistently while recognising that every customer’s circumstances are different.
Financial difficulty
Stonewater may consider partial or full reverse staircasing where:
you are experiencing serious financial difficulties
you are having difficulty maintaining your mortgage payments
there is a risk that your mortgage lender may repossess your home; and
you have explored other reasonable options for avoiding repossession.
We may ask you to show that you have considered options such as:
speaking to your mortgage lender about changing or rescheduling your mortgage payments
speaking to your mortgage lender around extending the term of your loan
obtaining independent debt or financial advice
selling your shared ownership home; or
moving to a more affordable home within a reasonable distance of your current home.
You will need to provide evidence of your financial circumstances and the options you have already explored. The information required will depend on your individual situation.
Reverse staircasing will not be approved solely to release money from your home so that you can refinance or consolidate other debts.
Building Safety & Remedial Works
Stonewater may consider reverse staircasing where building safety or remedial work is preventing you from selling or re-mortgaging your home.
This may include circumstances where:
the home has received a £0 or “nil” valuation because of the required work, meaning that it cannot currently be sold or mortgaged in the usual way
the work is not expected to start or be completed within the next six months; or
the home has been marketed for more than 12 months but there has been no proceedable sale because of the outstanding work.
We may ask for information such as a valuation, correspondence from your mortgage lender, details of how long the home has been marketed and evidence of any offers received.
Significant medical impact
Stonewater may consider a full buyback where:
your home is no longer suitable because of a significant medical condition or change in your needs
remaining in the home is having a serious impact on you; and
other reasonable options, such as adaptations or moving to a more suitable home, have been explored and exhausted.
There are no fixed criteria because each customer’s medical circumstances are different.
You will need to provide supporting information from an appropriate healthcare professional. This should explain how your home or living arrangements affect your medical or accessibility needs.
The healthcare professional will provide evidence of the impact on you. Stonewater will make the decision about whether reverse staircasing can be approved.
What happens if my application is approved?
If your application is approved:
A valuation of your home will be required
Stonewater will instruct its solicitor
You will need to appoint your own solicitor
Your mortgage lender will normally need to be involved
The solicitors will complete the necessary legal work
We will confirm any changes to your ownership share, rent and other charges.
Approval to proceed does not mean that the legal transaction has been completed. The transaction will only take effect when all legal requirements have been met.
Costs
If your application is approved, you will normally be responsible for:
your own legal fees
Stonewater’s administration fee; and
the cost of a market valuation carried out by a surveyor registered with the Royal Institution of Chartered Surveyors.
We will explain the expected costs before the legal transaction begins.
You should obtain independent legal and financial advice so that you understand how reverse staircasing could affect your mortgage, rent, service charges, benefits and overall financial position.
How long will the process take?
The time required will depend on the complexity of your circumstances and how quickly we receive the necessary information.
We cannot submit your application for approval until we have received all the supporting evidence. The process to gain approval once all documentation and evidence has been received can take up to 6 weeks.
If approval is given, the legal stage usually takes around 12 to 16 weeks. It may take longer if there are complex legal, mortgage, planning, funding or valuation matters to resolve.
We will keep you updated as your application progresses.
Frequently Asked Questions
Can I sell only part of my share back to Stonewater?
Possibly. Stonewater can consider applications for both partial and full reverse staircasing.
A partial reverse staircasing application must meet the relevant criteria and go through Stonewater’s internal approval process. If Stonewater buys part of your share, the percentage you own will reduce and the rent payable on Stonewater’s share is likely to increase.
Is reverse staircasing guaranteed if I meet the criteria?
No. Reverse staircasing is discretionary and is considered only in exceptional circumstances.
Meeting the criteria does not guarantee approval. Each application must be assessed individually and may be affected by legal, planning, funding or property-related restrictions.
Why do I need to explore selling and other options first?
Stonewater is a charitable organisation and must use its funding responsibly and in line with the requirements that apply to social housing providers. Reverse staircasing is therefore considered only where there is a significant need and other reasonable options have been exhausted.
Can reverse staircasing be used to consolidate my debts?
Reverse staircasing will not be approved solely to release money from your home so that you can refinance or consolidate other debts. If you are experiencing financial difficulties, we encourage you to obtain independent debt and financial advice.
If Stonewater buys my full share, can I remain in the home as a rented customer?
This is unlikely. A full buyback does not automatically mean that you can remain in the home as a rented customer.
Stonewater will need to consider:
the terms of the lease
the funding conditions applying to the home
planning requirements
any section 106 agreement; and
the permitted future use of the property.
Stonewater may need to sell the home to another shared owner.
If it is legally possible to use the property as rented accommodation, Stonewater will also need to assess whether you qualify under its Access to Housing Policy. We will explain the possible outcomes before you decide whether to proceed.
Will I need a solicitor?
Yes. Partial and full reverse staircasing are legal property transactions.
Stonewater will appoint its own solicitor, and you will need to appoint an independent solicitor to represent you.
What happens if Stonewater cannot approve my application?
We will explain why your application has not been approved.
Where possible, we will help you understand the other options available and direct you to relevant organisations that may be able to offer advice or support.
More information and support
If you think reverse staircasing may be appropriate for your circumstances, please contact us via commercialservices@stonewater.org before arranging a valuation or instructing a solicitor.
