Taking steps towards outright ownership

Shared Ownership offers a route onto the property ladder. Once you’ve taken that all-important first step, your next goal may be moving on to the next level: increasing your share. This is called ‘staircasing’. 

In this guide, you’ll find key information about staircasing your Shared Ownership home with Newlon Living.

What is staircasing a Shared Ownership home?

Buying additional shares in your Shared Ownership home is known as ‘staircasing’. The more shares you own, the less rent you’ll pay. 

  • Interim staircasing: The process of buying additional shares. You’ll pay less rent, but the amount will remain subject to an annual review.
  • Final staircasing: The process of buying additional shares to a total of 100%. You’ll no longer pay rent but may have to pay an annual ground rent in accordance with the terms of your lease. 

The benefits of staircasing your Shared Ownership home

Interim staircasing benefits

  • You’ll own more of your home
  • You’ll pay less rent

Final staircasing benefits

  • You’ll have more choice of mortgages
  • You’ll have more freedom when selling

Staircasing your Shared Ownership home with Newlon Living

If you wish to purchase more shares in your Shared Ownership home, you’ll need to complete our ‘staircasing instruction form’. You can get this by emailing staircasing@newlon.org.uk. We’ll also send you a list of valuers accredited by the Royal Institute of Chartered Surveyors (RICS) for you to choose from.

Your home valuation

Your home’s value will fluctuate depending on housing market conditions. Therefore, the value of your home at the time you want to staircase is likely to be different to when you bought your initial share. The additional equity you wish to purchase will be sold at your home’s current market value. 

The staircasing process

The staircasing process begins once we’ve received your completed staircasing instruction form, you’ve chosen a surveyor and paid the correct fee. 

We’ll instruct your chosen surveyor to contact you to arrange for a valuation within three working days of receiving your completed application form. The valuation determines the price you’ll pay for the additional equity you wish to purchase. 

If you want to include someone on the title document and mortgage, you must provide details as requested on the instruction form. 

Staircasing FAQs

Do I have to staircase my Shared Ownership home?

The decision to staircase is entirely up to you – there’s no obligation to buy more shares in your home.

How much can I staircase?

Most of our leases allow staircasing up to 100%. We recommend checking the terms of your lease in the first instance.

You can typically staircase three times after the initial purchase, with a minimum purchase of 10% each time. When you make your final allowed staircasing transaction, you can only purchase the remaining share, so you own 100% of your home.

How do I request to staircase?

If you wish to staircase your Shared Ownership home, contact Resident Sales by calling 020 7613 7480 or emailing staircasing@newlon.org.uk.

What happens to my rent payments when I staircase?

Increasing your share reduces the amount of rent you pay.

If you staircase to less than 100%, the rent will be recalculated, and you’ll pay a reduced amount. You’ll be advised of the revised amount on completion of the staircasing transaction.

If you staircase to 100%, you’ll no longer pay rent. However, you may have to start paying ground rent from the date of final staircasing, depending on when your lease was granted.

The Leasehold Reform (Ground Rent) Act 2022 became law on 30 June 2022. This Act abolished ground rents on all new leases in England and Wales. If your lease was granted before this date, this does not apply to you, and you may have to pay ground rent in accordance with your lease terms.

Check your lease to see how much ground rent is payable each year. This may be collected pro rata from completion.

What are the costs associated with staircasing?

– Any rent or service charge arrears must be cleared before completion
– Property valuation
– Our administrative charges
– Cost of the share
– Cost of adding or removing someone from the lease/mortgage (if applicable)
– Cost of requesting a deed of variation
– Mortgage arrangement fees to your lender (if applicable)
– Penalty fees (if applicable when changing lenders)
– Your solicitor’s fees (you are not responsible for Newlon’s legal fees for staircasing)
– Notice of charge
– Notice of transfer (if any)

Do I have to pay Stamp Duty Land Tax (SDLT) when I staircase?

We recommend discussing any SDLT that may be payable with your solicitor, as we’re not able to confirm any SDLT owing on staircasing or SDLT paid at initial purchase. 

If you buy further shares in your home, you may be liable to pay SDLT and be required to notify HM Revenue and Customs (HMRC) if the purchase takes you over 80% equity. This is the case whether or not you paid any SDLT on the initial equity you purchased. 

For further information on SDLT please visit www.gov.uk/stamp-duty-land-tax.