The Ultimate Guide to Shared Ownership Staircasing

Gradually increasing ownership through staircasing is a beneficial choice for first-time buyers looking to step onto the property ladder or for those seeking to build equity in their homes over time. Shared ownership, a common method for gaining home ownership, involves purchasing a portion of a property and paying rent on the remaining share to a Housing Association. Staircasing allows shared owners to steadily increase their ownership stake in the property.

After becoming a shared owner, staircasing provides the opportunity to acquire additional shares in your home, leading to a decrease in rent and an increase in ownership. This can be achieved through either interim or final staircasing. Interim staircasing involves a gradual rise in the ownership percentage, while final staircasing allows the shared owner to attain complete ownership without any ongoing rental payments.

Shared ownership staircasing offers numerous advantages. By owning more of your home, you can lower rental costs, access cheaper mortgages, and benefit from potential market value increases. Whilst owning 100% of the property provides more selling flexibility, consulting a specialist to assess your situation and make a well-informed decision will be beneficial.

Staircasing in shared ownership comes with a range of expenses, such as survey and valuation fees, administration charges, legal costs, mortgage fees, and Stamp Duty Land Tax. The total cost will vary depending on factors like the property’s location and value. These costs are incurred each time you purchase additional shares, and they can influence your decision to pursue interim staircasing.

When deciding between interim and final staircasing in shared ownership, several factors must be considered. These include financing options, fluctuating share prices, implications of Stamp Duty, changes in mortgage arrangements, limitations on how often you can staircase, and potential restrictions on property ownership.

For guidance on shared ownership staircasing, it’s important to seek legal advice to make informed decisions about how, when, and even if, to undertake the process. The residential property team at Thursfields has expertise in this area and can offer bespoke solutions tailored to unique circumstances. Contact the team today on 0345 207 3728 or email on info@thursfields.co.uk or for more information, visit The Ultimate Guide to Shared Ownership Staircasing | Thursfields Law Firm.