A Guide to Staircasing in Shared Ownership

Buying a home through a shared ownership scheme can be a great way to get on the property ladder when buying outright feels out of reach. But what many people don’t realise is that shared ownership isn’t necessarily the end of the journey — you can increase your share in the property over time through a process called staircasing.

If you’re thinking about taking this next step, it’s worth understanding exactly how staircasing works, the benefits, the costs, and the practical steps involved. This guide will walk you through everything you need to know, whether you’re a first-time buyer or already part of a shared ownership scheme.

What Is Staircasing?

In shared ownership, you initially buy a percentage of a property — usually between 25% and 75% — and pay rent to a housing association or landlord on the remaining share.

Staircasing is the process of buying additional shares in your home. You can do this in stages, gradually increasing your ownership, or in one go if you’re in a position to do so. Eventually, you could own 100% of the property, meaning you no longer pay rent on any share.

How Staircasing Works

When you decide to staircase, the first step is to contact your housing association to let them know you want to buy a larger share. They’ll arrange for an independent valuation of your home to determine its current market value.

Your new share is calculated based on this valuation. For example, if your home is valued at £240,000 and you want to buy an additional 25%, the cost would be £60,000 (25% of £240,000), plus associated fees.

You can usually staircase in increments of 10% or more, although some schemes have flexibility for smaller increases.

Why People Choose to Staircase

There are several reasons why staircasing appeals to shared ownership buyers:

• Reduced Rent Payments – The more of your home you own, the less rent you pay.
• Full Ownership – Reaching 100% ownership gives you complete control over your home.
• Freedom to Sell on the Open Market – Once you own the property outright, you can sell without restrictions from the housing association.
• Potential Investment Growth – If property values rise, owning a larger share could mean more equity in the long term. Local property experts, such as estate agents in Chelmsford, often point out that staircasing can be particularly beneficial in areas where values are on the rise, as it locks in more equity for the future.

Costs to Consider

While the idea of owning more of your home is appealing, staircasing does involve costs beyond the price of the additional share. These can include:

• Valuation Fees – For the independent survey to assess market value.
• Legal Fees – For the conveyancing work to update ownership details.
• Stamp Duty – Depending on the share you’re buying and your previous payments.
• Mortgage Fees – If you’re increasing your mortgage to fund the purchase.
• Administration Charges – Some housing associations charge for processing the staircasing transaction.

Factoring in these costs is essential so you have a clear picture of the total outlay before committing.

When Is the Right Time to Staircase?

Timing your staircasing can make a difference financially. Here are a few situations where it might be worth acting:

• When Property Values Are Stable or Falling – You’ll pay less for the additional share if the valuation is lower.
• When Your Income Has Increased – A pay rise or change in financial circumstances may make it easier to afford.
• Before Interest Rates Rise – If you need to adjust your mortgage, securing a lower rate can save money.

Talking to financial advisers and local estate agents in Chelmsford can help you decide on the best time, as they’ll have insight into market conditions and future trends.

The Step-by-Step Process

To give you a clearer idea of what’s involved, here’s a typical staircasing process:

1. Check Your Lease – Confirm that your shared ownership agreement allows staircasing and note any restrictions.

2. Contact Your Housing Association – Let them know you’re interested in buying a bigger share.

3. Arrange a Valuation – The housing association will appoint a RICS-certified surveyor.

4. Secure Financing – Speak to your lender or a mortgage broker to arrange funds.

5. Instruct a Solicitor – They’ll handle the legal aspects of the transaction.

6. Complete the Purchase – Once contracts are signed and funds transferred, your ownership share will be updated.

Tips for a Smooth Staircasing Experience

• Plan Ahead – Research your options and know how much you can realistically afford.
• Compare Mortgage Deals – Even a small rate difference can save thousands over time.
• Use Professionals Who Understand Shared Ownership – Some solicitors and brokers specialise in these transactions.
• Keep Communication Open – Respond quickly to any requests from your solicitor or housing association to avoid delays.

Common Myths About Staircasing

There are a few misunderstandings that can put people off staircasing:

· “It’s Too Complicated” – While it involves a few steps, working with the right professionals makes the process straightforward.

· “You Have to Buy the Rest in One Go” – Not true — most schemes allow gradual increases.

· “It’s Not Worth It Financially” – In many cases, it reduces rent significantly and increases equity, especially in growing markets like Chelmsford.

Selling After Staircasing

If you decide to sell after staircasing, your options will depend on how much you own.

• If You Own 100% – You can sell on the open market just like any other property.
• If You Own a Share – You may have to offer it to the housing association first (this is called “first refusal”) before marketing it more widely.

Here’s where estate agents in Chelmsford can be especially valuable — they can help you navigate the sale process, ensure your property is marketed effectively, and advise on pricing to attract buyers.

Conclusion

Staircasing can be a smart way to move from partial ownership to full ownership, giving you greater control, reducing rent, and potentially increasing your equity. While there are costs and processes to consider, the benefits often outweigh the drawbacks, particularly in areas with a healthy property market.

By understanding how staircasing works and planning carefully, you can make the transition smoothly and at the right time for your finances. And if you’re unsure where to start, local experts — including experienced estate agents in Chelmsford — can guide you through the options and help you make an informed decision.