Staircasing
Quick links
- Staircasing
- The benefits of Staircasing
- How Staircasing works
- Valuing your home
- Funding the cost of buying additional shares
- The cost of Staircasing
- Staircasing to 100 percent ownership
- Restricted leases
- Instructing solicitors
- Starting the process
- Frequently Asked Questions
Staircasing
As a Shared Owner, you can buy additional shares in your home through a process called Staircasing. The more shares you own, the less rent you'll pay to Longhurst Group.
Subject to your lease, you may be able to staircase up to 100 percent and own your home outright.
Staircasing allows you to increase your home ownership at your own pace, making it an affordable option. Our experienced Asset Sales Team will guide you through each step of the process.
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The benefits of Staircasing
Staircasing increases the share you own, reducing your rent payments and building more equity in your home.
You may be able to use existing equity to purchase more shares, which often makes this an affordable option as the additional mortgage payment could be less than your monthly rent.
Staircasing to 100 percent ownership offers many advantages. You'll no longer pay rent to Longhurst Group and have the freedom to make improvements to your home. When you're ready to sell, you can sell your home outright on the open market and benefit from the full sale profits.
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How Staircasing works
The first step in the Staircasing process is to contact us. We will check your lease and confirm the maximum share you can buy. Most leases allow Staircasing to 100 percent ownership, depending on the property and location. The minimum share you can staircase is 10 percent.
You can either buy an additional share (‘part staircase’) or the remaining shares in your home (‘100 percent Staircasing’).
Some leases limit Staircasing to three times. If this applies to you, we recommend buying larger shares or the remaining shares to minimise transaction costs.
The share cost is based on the current open market value of your property, determined by a Royal Institute of Chartered Surveyors (RICS) Open Market Valuation report.
For example, if your property is valued at £200,000 and you own a 50 percent share.
| Additional Share | Cost | Your new share | You'll pay rent on |
|---|---|---|---|
| 10% | £20,000.00 | 60% | 40% |
| 25% | £50,000.00 | 75% | 25% |
| 50% | £100,000.00 | 100% | *0% |
*service charges may be payable.
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Valuing your home
The cost of purchasing additional shares is based on your home's current market value when you apply to staircase. We can assist in arranging a valuation by a RICS Chartered Surveyor, with the cost of the report being your responsibility as stipulated in the lease.
The Open Market Valuation report remains valid for three months and must be current at the time of purchase completion. If the sale extends beyond this period, you'll need an extension letter from the original surveyor or a new valuation report, potentially affecting costs if your property appreciates. Please note, we don’t accept market appraisals from estate agents.
The valuation must include:
- Your current ownership percentage.
- The property's market value including any authorised improvements.
The purchase cost for the additional share will be calculated using the lower value excluding improvements.
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Funding the cost of buying additional shares
You can fund the cost of buying additional shares either by buying outright, ie, if you have adequate savings to cover the cost of the share, or by adding the cost of the share onto your existing mortgage.
The ideal time to do this would be at the point of renewing your mortgage deal. You'd need to contact your mortgage lender to discuss if this is an option for you. This is known as a ‘further advance’, or if you were moving your mortgage to a new mortgage lender to benefit from a better interest rate, this is called ‘remortgaging’.
You'll need to speak to your suitably qualified and regulated mortgage advisor or financial advisor before committing to Staircasing. You can check the valuation of your home, prior to proceeding with the RICS valuation report, using a number of different sites such as rightmove.com or zoopla.co.uk
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The cost of Staircasing
Along with the price you pay for the additional share, you'll also need to cover the cost of the Open Market Valuation report and your own legal and mortgage arrangement costs.
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Staircasing to 100 percent ownership
If you own a house and staircase to 100 percent ownership, you become the freeholder and own the home outright. You won’t need to pay rent but may still have to cover a service charge for communal areas. As the freeholder, you can sell your home on the open market and keep the full sale proceeds. You're also responsible for both buildings and contents insurance.
If you own an apartment and staircase to 100 percent ownership, you purchase the full leasehold interest. Shared Ownership terms no longer apply. You're still liable for a service charge for communal areas. We'll also arrange buildings insurance, but you need to handle contents insurance.
If you live in a rural area with a Designated Protected Area lease, you can buy the 100 percent leasehold interest but not the freehold. A ‘Buy Back Clause’ means that if you own over 80 percent and wish to sell, we must repurchase the property.
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Restricted leases
Some leases cap ownership at 75 or 80 percent, preventing 100 percent Staircasing. These limits, set by the local authority, help preserve affordable housing, particularly in rural areas or for specific groups like the over-55s. Such properties need to remain affordable.
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Instructing solicitors
Staircasing is a legal process that requires a solicitor to handle the Memorandum of Staircasing and legal documents confirming your increased share. Your solicitor will also register your new ownership with the Land Registry.
If you’re part Staircasing with a mortgage, your lender will need a solicitor, and we must approve the new mortgage offer. We will also arrange our own solicitor and cover our legal fees.
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Starting the process
Start the process
Email staircasing@longhurst-group.org.uk and a colleague will contact you with more information.
Talk to us
We can talk you through any queries you may have and explain the Terms and Conditions and the benefits of Staircasing to you.
Apply
When you’re ready, we’ll give you an application form to complete.
Independent financial advice
Speak to an IFA about your personal circumstances.
RICS Open Market Valuation report
We'll help you arrange an RICS Open Market Valuation report.
Cost of additional share
We'll then confirm the current value of your home and costs of additional shares so you can make a decision on how to proceed.
Accept the offer
Complete a simple form to accept our staircasing offer. Get IFA and Mortgage Approval (if required) prior to acceptance.
Solicitors
Solicitors can be instructed to take care of the legal requirements. This process usually takes between eight and ten weeks.
Enjoy
Enjoy the benefits of owning your home, whether that be outright or with an increased share.
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Frequently Asked Questions
Everything to know about Staircasing
The option to staircase is at your discretion as and when you're in a position to do so. However, Staircasing has many benefits for Shared Ownership customers who aspire to eventually own their own home.
The valuation is valid for three months. If the process has not been completed within this period, then either a revaluation or an extension will be required.
If you've made improvements to your home, such as an extension and we've consented to these improvements, the cost of the additional share will be determined using the lower value ‘without improvements’ figure of the Open Market Valuation report.
For example: If your home is valued at £250,000 with the extension, but would be valued at £200,000 without, then the lower figure will be used to work out the value of the extra share.
If you don't agree with the value provided by the RICS valuer, you have the opportunity to challenge this by providing written reasons directly to the chosen valuer. This must be based on current market conditions and recent comparable sales.
You should provide evidence of the sales prices of at least three similar properties in your area. You may then ask the valuer to reconsider their valuation.
If you're still not satisfied with the outcome, you may instruct another RICS qualified valuer to revalue the property at your expense.
You're free to use a solicitor of your choice, however, if required, we'll be happy to recommend solicitors that regularly act for Longhurst Group shared owners when staircasing and who have extensive knowledge on the legal requirements involved in the process.
This depends on the type of property and what is contained in the lease.
If you live in a flat, the property will remain leasehold. If you live in a house, it's likely that the freehold will transfer to you on completion, unless we don't own the freehold or your lease doesn't allow us to transfer the freehold, for example, your lease is a ‘Designated Protected Area lease’.
This depends on if you paid any Stamp Duty when you first bought your home and this'll also be subject to the current Stamp Duty thresholds. Your solicitors will be able to confirm this to you.
If you're 'part Staircasing' and would like to add someone onto the lease and mortgage, they'd need to be approved by us that they meet the criteria for Shared Ownership. Their income would also need to be taken into consideration for the purpose of ongoing affordability and also for confirming what additional share is affordable for Staircasing.
If you're buying the 100 percent ownership in the property and becoming the freeholder, then you'd need to confirm the full name/s of any additional buyers to us and your solicitor so they can be included on the legal papers and registered on the Title Deeds at Land Registry once the sale completes.
For removing an existing leaseholder from the property, we'd require written authority from both leaseholders. This is to be provided by your own acting solicitors.
If you buy your home outright, you’re free to do whatever you choose with it. However, if there’s an ongoing service charge, you’d still be liable to pay this and your name would remain on our systems.
If your home is an apartment and you buy the 100 percent leasehold interest, you can rent out your home but you'll still remain the ‘responsible person’ on our system for paying the ongoing service charge. We'd also ask for contact details of your tenants in case of any emergencies (ie, fire, theft or flooding).
If you purchase an additional share and your home is still owned on a Shared Ownership basis, you’ll be unable to sub-let as this isn’t permitted under the terms of the Shared Ownership lease.
The Open Market Valuation report is valid for three months, so the process is normally completed within a three month period. This can sometimes be longer if there are any unforeseen issues arising, such as delays with your mortgage offer, however we to aim to complete all Staircasing sales within three months.
You'll be required to clear any rent or service charge arrears on your account when you complete your Staircasing purchase. Any arrears will be collected on the completion statement along with the cost of the additional/final share.
- Contact us on staircasing@longhurst-group.org.uk and we'll provide you with further help and information.
- Do your own research on the potential current value of your home and speak to your mortgage lender and an Independent Financial Advisor (IFA).
- Advise us that you'd like to proceed. We'll help arrange for a RICS valuation to be undertaken on the property to determine the property’s current open market value. The valuation will be valid for three months.
- Once the valuation has been undertaken, we'll provide you with confirmation of the property’s value along with the costs of additional shares and the rent/service charge amount that you'd be required to pay after your Staircasing purchase, if applicable.
- Complete and return the signed Notice to Proceed form, confirming the amount of shares you'd like to purchase and provide your solicitor's full contact details.
- We'll then instruct our solicitor. The solicitors will work together to produce the legal paperwork which'll be signed by both parties and a date set for completion.
- Keep in regular contact with your solicitor and respond to any requests for information quickly.
- The sale completes and we'll update your rent account and direct debit amount to reflect the new rent payable (if you've purchased an additional share) or close your account (if you've staircased to be the outright owner and no on-going service charges are payable). Any overpayment in rent will be returned to you via our Homeownership/ Leasehold Services Team after completion.
- If you've staircased to 100 percent and own your home outright, remember to:
- Cancel your rent direct debit.
- Arrange your own buildings insurance.