What is Staircasing in Conveyancing?

Buying a shared ownership property can be an effective way to get onto the property ladder. However, many homeowners are unsure what happens after their initial purchase, particularly when it comes to increasing their ownership share.

This guide explains what staircasing in conveyancing involves, how the staircasing process works, the costs you may face, and whether it is worth staircasing to full ownership.

Please note that this article is provided for general information only and does not constitute legal advice.

What is staircasing?

Staircasing is the process of purchasing additional shares in a shared ownership property.

When you first buy a shared ownership home, you typically purchase a percentage of the property and pay rent on the remaining share owned by a housing association.

Over time, you can increase your ownership by buying further shares. This is known as shared ownership staircasing.

In many cases, you can continue staircasing until you reach 100% ownership, although this depends on the terms of your lease.

Understanding staircasing in conveyancing is important because each increase in ownership is treated as a legal transaction.

This means additional conveyancing work is required every time you staircase.

How does staircasing work?

The staircasing process begins when you decide to purchase a larger share of your home.
You will need to contact your housing association to confirm that you are eligible to staircase.

A key part of how staircasing works is the property valuation.

An independent RICS-qualified surveyor will assess the current market value of your home, and this valuation is used to calculate the cost of the share you want to purchase.

For example, if your property has increased in value since you first bought it, the price of additional shares will also increase.

Once you have received the valuation, you can decide how much of an additional share to buy.

This can be funded through savings or by taking out a staircasing mortgage.

After your decision is made, the legal process begins to formalise the purchase and update your ownership.

The conveyancing process for staircasing

1. Contacting your housing association

You notify your housing association of your intention to staircase and request permission to proceed.

2. Obtaining a valuation

An independent valuation determines the current market value of your property.

3. Confirming your finances

You decide how the additional share will be funded, whether through savings or a staircasing mortgage.

4. Instructing staircasing solicitors

A conveyancing solicitor will manage the legal aspects of the transaction.

5. Reviewing legal documents

Your solicitor will review your lease and liaise with the housing association.

6. Issuing the memorandum of staircasing

The housing association provides a formal document confirming your increased share.

7. Completion and registration

Funds are transferred and your updated ownership is registered with the Land Registry.

Refer to our Stages of Conveyancing guide for more information on the wider process.

Staircasing costs and fees

Staircasing costs can vary depending on the value of your property and the share you are purchasing.

Common costs include:

Valuation fees
Legal fees for staircasing solicitors
Mortgage arrangement fees (if applicable)
Housing association administration fees
Land Registry fees

You will also need to pay for the additional share itself, which is based on the current market value of the property.

It is important to budget carefully, as staircasing costs can increase over time, particularly if property values rise.

Understanding staircasing costs in advance can help you plan more effectively.

Stamp duty and staircasing

Stamp Duty Land Tax (SDLT) can apply when staircasing, depending on how it was handled when you first purchased the property.

Some buyers choose to pay SDLT on the full market value at the outset, while others opt to pay in stages.

If you chose the staged approach, you may need to pay additional SDLT when your ownership exceeds a certain threshold, often around 80%.

The rules can be complex, and the amount payable will depend on your individual circumstances.

Seeking advice can help ensure you understand any potential tax liability before proceeding.

Staircasing to 100% and acquiring the freehold

Many shared ownership homeowners aim for final staircasing to 100% ownership.

Once you reach full ownership, you will no longer pay rent to the housing association, which can significantly reduce your monthly costs.

In some cases, particularly with houses, you may also be able to acquire the freehold. This is often referred to as shared ownership staircasing to 100 freehold.

However, not all properties qualify for freehold transfer. Flats usually remain leasehold, even after reaching 100% ownership.

Checking the terms of your lease is essential before planning final staircasing.

Is staircasing worth it?

Whether it is worth staircasing shared ownership depends on your financial situation and long-term goals.

There are several advantages:

Increasing your equity in the property
Reducing or eliminating rent payments
Gaining greater control over your home

However, there are also important considerations:

Property values may rise, increasing the cost of shares
Legal and administrative costs apply each time you staircase
Mortgage repayments may increase if borrowing more

Carefully weighing these factors can help you decide whether staircasing is the right option.

How long does staircasing take?

The staircasing process typically takes between 6 and 12 weeks.

However, this can vary depending on several factors, including how quickly the valuation is completed, whether mortgage approval is required, and how long the housing association takes to process the application.

Delays can occur if documentation is incomplete or additional checks are needed.

Preparing in advance can help keep the process on track.

Do I need a solicitor for staircasing?

Although it may be possible to handle some aspects yourself, it is strongly recommended to instruct a conveyancing solicitor.

Staircasing involves legal documentation and changes to your lease, which must be handled correctly.

A solicitor will ensure that all requirements are met, liaise with the housing association, and register your updated ownership.

Using experienced staircasing solicitors can help avoid delays and ensure the process runs smoothly.

Can I staircase without a mortgage?

Yes, you can staircase without a mortgage if you have sufficient savings to fund the purchase.

This can be a cost-effective option, as it avoids additional borrowing and interest payments.

However, many homeowners choose to use a staircasing mortgage or remortgage to make the purchase more manageable.

The right option will depend on your financial circumstances.

How many times can I staircase?

In most cases, you can staircase multiple times until you reach full ownership.

The minimum share you can purchase at each stage is usually set by the housing association, often around 10%.

There is generally no strict limit on how many times you can staircase, provided you meet the relevant criteria.

What is a memorandum of staircasing?

A memorandum of staircasing is a legal document issued by the housing association.

It confirms the increase in your ownership share and forms part of your lease documentation.

This document is important because it provides formal evidence of your updated ownership and is used when registering the change with the Land Registry.

Can I staircase if my property has decreased in value?

Yes, you can still staircase if your property has decreased in value.

In some cases, this may allow you to purchase additional shares at a lower cost.

However, if you are using a mortgage, lenders may reassess affordability before approving further borrowing.

Seeking advice before proceeding can help you understand your options.

How a conveyancing solicitor helps with staircasing

A conveyancing solicitor plays an important role in the staircasing process.

They will review your lease, prepare and check legal documents, liaise with the housing association, and handle the transfer of funds. They can also help with transfer of equity, should you require it.

They ensure that your updated ownership is correctly registered with the Land Registry.

Professional support can help reduce stress and ensure the process is completed accurately and efficiently.

Contact Lyons Law for staircasing advice

At Lyons Law, our experienced conveyancing team can guide you through every stage of the staircasing process, helping you make informed decisions along the way.

If you are considering staircasing your shared ownership property and would like tailored advice, please get in touch with our team in Chew Magna, Kingswood or Westbury-on-Trym today.