Buying more shares in your home
If you are a Shared Owner and want to buy further shares in your home, learn how you can ‘staircase’ and increase your ownership.
As a Shared Owner, you may wish to increase the shares you own in you home. This is known as staircasing.
Every lease is different, and some are restricted in terms of the level of ownership, so it is important to check your lease with us before committing to buying further shares.
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Ready to apply? You'll find the application form at the bottom of this page.
Who is eligible?
Most Shared Owners have the right to staircase.
Your lease will outline if and how you are able to staircase. Most leases will allow you to staircase to 100%, but if you hold a restricted lease and can only staircase to 80%, you won't be eligible to buy the remaining shares and will reman be a Shared Ownership leaseholder.
Why staircase?
The level of rent you pay relates to the share that we own. The higher the share you own, the less rent you pay to Stonewater. Your rent will go down in proportion to the share you buy and you’ll pay less rent each time you staircase further.
If you are able to staircase to 100%, you will no longer pay us rent, but there may still be ongoing service and estate charges.
We recommend you staircase in large increments, if possible, to avoid the associated costs each time.
What to do before applying
First, we recommend that you estimate the current value of your home. This will give you an idea of how much you’ll pay for the extra share. Local estate agents or online sites such as Zoopla and Rightmove can help you do this.
Any staircasing transaction will need a RICS valuation (Royal Institute of Chartered Surveyors), but we recommend just assessing the likely cost before committing to a formal valuation.
Our staircasing guide contains more information on how to get a RICS valuation.
We also recommend checking with your mortgage lender to see if you can increase your mortgage to allow you to buy the extra share, or whether you can get a new mortgage with a different lender.
It is also worth checking with a financial or mortgage advisor to see what is affordable for you.
We can arrange for you to speak to an independent mortgage advisor for a quick, free chat. Get in touch with us on commercialservices@stonewater.org for more information.
If you're ready to apply, you'll find the application form at the bottom of this page.
Ongoing rent
Even after purchasing the maximum share permitted under your lease, you may still be required to pay rent on the remaining share retained by Stonewater. This will depend on the terms of your lease.
Future staircasing
Once you have purchased the maximum share permitted under your lease, you will not be able to staircase any further unless the terms of your lease change.
Service charges
Your responsibility for service charges will generally remain unchanged, regardless of the percentage share you own.
Future resale
Your property will remain a shared ownership home, which means certain requirements may apply when you decide to sell.
Resale considerations
Selling a shared ownership property does not necessarily make the process more difficult, but there are some additional factors that may influence how the property is marketed and who can purchase it.
Buyer eligibility
The property must usually be sold to someone who is eligible for shared ownership. Eligibility requirements are set by the relevant scheme and may include:
Meeting the applicable household income limits
Not owning another property at the time of purchase (unless an exception applies)
Intending to use the property as their only or principal home
As with any shared ownership property, prospective buyers will need to meet the relevant eligibility criteria before they can proceed with a purchase.
Affordability assessment
Prospective buyers will normally need to pass an affordability assessment to demonstrate that they can afford both the purchase and ongoing housing costs.
Local connection criteria
Some shared ownership properties are subject to local connection requirements, meaning priority may be given to buyers with a connection to that particular area. We can confirm whether this applies to your home.
Ownership restrictions
Some prospective purchasers may prefer properties where they have the opportunity to acquire 100% ownership or, where applicable, the freehold in the future. Where your lease caps the maximum share that can be owned, prospective buyers should be aware that the property will remain a shared ownership home.
Nomination period
When you decide to sell, your lease will usually include a nomination period during which Stonewater may have the opportunity to nominate an eligible purchaser. Only after this period has expired (or in accordance with the lease terms) may the property be marketed more widely. We can confirm the requirements that apply by reviewing your lease.
Property valuation
The sale price will normally be based on an independent RICS valuation, in accordance with the terms of your lease.
Before you decide
This information is not intended to discourage you from staircasing to the maximum share permitted by your lease. Our aim is simply to ensure you understand the implications of doing so before making your decision.
We strongly recommend that you seek independent financial and legal advice before proceeding with any staircasing transaction.
FAQs
Are there costs associated with staircasing?
Staircasing does come with associated costs.
We've outlined the main costs below:
- The value of the extra share you are buying - known as the staircasing premium
- RICS Valuation - you must pay the valuer, even if you decide not to buy the extra share
- Your solicitor’s fees
- Our administration fee
- Stamp Duty (where applicable)
- Mortgage costs and associated fees
- Any arrears or rent/service charge due on completion
- Where there is a third party management structure on the scheme, the management company may have specific charges and requirements that your solicitor will need to advise you on.
These are the main costs, and there may be further fees, particularly if there is a management company involved.
Please check with your solicitor at the start of the process what these may be.
What happens upon completion?
We’ll reduce your rent from the day you buy the extra shares.
You only pay rent on the part of your home that we own.
If you buy all the remaining shares, up to 100%, and become an outright owner of your home (whether leasehold or freehold), you’ll no longer pay rent but may still need to pay ground rent and service/estate charges.
What is 1% staircasing?
Certain leases allow customers to buy an additional 1% each year for the first 15 years. This means you can gradually increase your ownership in affordable chunks.
If you are eligible for 1% staircasing, each year we'll provide you with an additional percentage value notice on the review date of your lease.
This outlines the cost of purchasing an additional 1% and the rent you would pay if the 1% was purchased. This notice is based on Land Registry HPI data, as outlined in the lease.
This notice is valid for 3 months, so it is important to contact us within this timeframe if you wish to purchase the additional 1%. The cost of this can change after the notice expires.
If you have received a notice and would like to purchase the additional 1%, please return the acceptance included with the notice, along with proof of how you intend to fund your purchase and certified ID for all parties to the lease, to commercialservices@stonewater.org
If you would like to purchase an additional 1% after the notice has expired, we can produce a new notice - just contact commercialservices@stonewater.org
Watch our staircasing webinar
Many shared owners tell us they'd like to staircase, but aren't sure what the process involves. We hosted a webinar to explain how it works, answer questions, and help you understand your options.
Guide to staircasing
For more information and to understand the process step-by-step, read our staircasing guide.
