Shared ownership schemes are designed to make homeownership more accessible by allowing buyers to purchase a percentage of a property while paying rent on the remaining share. Over time, many homeowners may wish to increase their share, a process known as staircasing. Increasing your share can reduce rental payments, build equity, and eventually lead to full ownership.
Understanding the process, costs, and common misconceptions is crucial for anyone considering staircasing. This guide explores practical advice, debunks common myths, and helps shared owners make informed decisions.
Myth 1: You Can Only Staircase After a Set Period
A common misconception is that shared owners must wait a fixed number of years before increasing their share. While many leases include a minimum period before the first staircasing opportunity—often 6 or 12 months—there is generally no strict long-term limit.
After the initial period, homeowners can typically purchase additional shares as frequently as the lease allows, subject to lender approval and valuation. Planning ahead and understanding your lease terms ensures that you can take advantage of staircasing opportunities without unnecessary delays.
Key takeaway: While an initial waiting period may apply, you can usually increase your share multiple times over the course of ownership.
Myth 2: Staircasing Always Requires Full Market Value Payment
Many shared owners assume that buying more of their property requires paying the full market value of the share. In reality, the amount you pay is based on a professional valuation of your property at the time of purchase. This means the share you buy may be more affordable than expected if the property’s value has changed since your initial purchase.
It’s important to engage a qualified surveyor for an accurate valuation, as this forms the basis for the staircasing calculation and ensures transparency.
Key takeaway: Payment is based on a professional valuation, not necessarily the current market listing price.
Myth 3: Legal and Administrative Processes Are Simple and Quick
Some homeowners assume that increasing their share is a straightforward process. While the concept is simple, the legal and administrative steps can take several weeks or months. Key steps typically include:
- Obtaining a property valuation
- Securing mortgage approval for the additional share
- Completing legal conveyancing and lease updates
- Paying any associated fees, such as valuation, solicitor, or administration costs
Working with professionals, including solicitors familiar with shared ownership and estate agents in Plymouth, helps ensure the process runs smoothly and avoids delays.
Key takeaway: Staircasing involves several legal and administrative steps; planning and professional support are essential.
Myth 4: Increasing Your Share Eliminates All Rental Payments
While staircasing reduces the rent proportionally to the share you own, you will continue paying rent on the portion you do not yet own. For example, owning 75% of a property means you still pay rent on the remaining 25%.
Full ownership—when you own 100%—is the only scenario where rental payments stop entirely. Many shared owners choose to staircase gradually, balancing upfront costs with reduced rent over time.
Key takeaway: Rent decreases with each additional share purchased but stops only when full ownership is achieved.
Myth 5: Mortgage Options Are Limited for Staircasing
Some shared owners assume that mortgages for additional shares are difficult to obtain. In practice, most lenders provide products specifically for shared ownership staircasing, though approval depends on income, credit score, and affordability.
It’s advisable to research lenders early, compare interest rates, and consider remortgaging if it benefits your overall financial position. Estate agents in Plymouth can often provide guidance on lenders experienced with shared ownership transactions.
Key takeaway: Mortgage options exist for staircasing, but planning and lender research are essential.
Practical Steps to Increase Your Share
1. Review Your Lease Agreement
Understand the terms of your shared ownership lease, including minimum periods for staircasing, permitted share increments, and any restrictions.
2. Obtain a Professional Valuation
Hire a qualified surveyor to determine the current market value of your property. This ensures transparency and accuracy in calculating the cost of your additional share.
3. Arrange Financing
Speak to mortgage lenders or financial advisors to secure funding for your staircased share. Compare rates and consider the impact on your overall financial position.
4. Engage Solicitors
A conveyancing solicitor experienced in shared ownership will handle the legal aspects, update your lease, and register changes with the Land Registry.
5. Budget for Fees and Costs
Factor in additional costs such as valuation fees, solicitor fees, and any administrative charges. Proper budgeting ensures there are no surprises during the process.
Benefits of Staircasing Your Shared Ownership Property
- Reduced Rental Costs: Each additional share purchased decreases the rent payable on the remaining portion.
- Increased Equity: Staircasing builds ownership equity, enhancing your financial security.
- Greater Control: Owning a larger share gives you more control over decisions affecting the property.
- Path to Full Ownership: Incremental staircasing allows homeowners to eventually own 100% of their property, eliminating rent entirely.
By approaching staircasing strategically, homeowners can balance costs, financial planning, and long-term benefits effectively.
Conclusion: Staircasing Is a Strategic Step Toward Full Ownership
Increasing your share in a shared ownership property is a valuable opportunity to reduce rent, build equity, and move closer to full ownership. Understanding the process, debunking common myths, and preparing financially and legally are essential to success.
Professional support—from surveyors, solicitors, and trusted estate agents in Plymouth—ensures that staircasing proceeds smoothly and that your interests are protected. By planning carefully, shared owners can make informed decisions, enjoy reduced rental payments, and ultimately secure complete ownership of their home.
Whether you are a first-time shared owner or looking to increase your stake over time, understanding the practical steps, costs, and benefits of staircasing empowers you to take control of your property journey with confidence.
