Staircasing FAQs
More questions about staircasing? Here's all of our most frequently asked questions.
Taking the next step as a shared owner?
Looking to buy more shares in your home? We also call this ‘staircasing’. Here’s a breakdown of our most frequently asked questions. We’ll be covering:
• valuations – working out how much your home’s worth
• your mortgage – how buying more shares can impact your rate
• payments – the costs involved in staircasing
• ways to pay – staircasing, remortgaging and leases
• adding or removing an owner.
Need some more information to get you started? Check out our Staircasing page.
Getting started
I want to buy more shares, where do I start?
It’s a good idea to check what your home is worth before starting the staircasing process. You can take a look at similar homes in your area on websites such as Rightmove or Zoopla.
The price of your new shares depend on the value of your home now (rather than what it was when you first bought shares). So, if you decide to go ahead, you’ll need to get a RICS Survey to confirm the value of your home. This will take into consideration any qualifying improvements you may have made to your home (but make sure you’ve asked our permission to make them).
You can staircase whenever you like, so just let us know when you’re ready to get started. Also, if you’re looking to remortgage, you may have the opportunity to buy more shares at the same time.
Do I need a mortgage advisor, and how do I find one?
A Mortgage Advisor (MA) can check your affordability and credit history before you start staircasing. This means you’ll know if you can afford to buy more shares before paying for a Solicitor or RICS valuation.
You can use any MA you like, but here are the ones who we know specialise in Shared Ownership and staircasing.
What are the costs involved?
Every shared owner is different. But here’s a few costs to consider if you’re thinking about staircasing:
- deposit: usually 5% of the new amount you’re looking to buy*
- valuation costs: usually around £250
- legal fees: each Solicitor is different, so ask about fees before you get started
- mortgage fees: each MA is different, so ask about fees before you get started
- Abri processing fee: you’ll need to pay £180 on completion.
These fees should be less than when you bought your first shares. Get multiple quotes for everything to make sure you’re getting the best deal. You’ll need to pay these fees every time you staircase, so it may be better to buy bigger chunks at a time.
To help you get started with finding a Solicitor, we've pulled together a list of companies who specialise in Shared Ownership and staircasing.
Solicitors specialising in Shared Ownership
If you’re staircasing to own 75% of your property or higher, you will need to also consider Stamp Duty Land Tax. Not sure what you need to pay? Head on over to our Stamp Duty page.
*Not required for remortgaging.
How can I pay for more shares, or make changes to my current lease/mortgage?
Staircasing
When staircasing, there are many ways to pay. If you’re looking to pay for your new shares in cash, we’ll just have to carry out a few additional checks.
If you have extra funds available, you can use this to increase your deposit amount*, which will reduce the lending amount needed to buy your new shares.
Lease extensions
Coming to the end of your lease? We have a team dedicated to helping you. They’ll be able to guide you through applying for a lease extension.
Remortgaging and Further Borrowing
We often get questions about additional borrowing. Your MA can look at this for you. The rates will be running alongside each other as separate terms (almost like two mortgages). So, you’ll need to stay organised as they’ll end at different times.
If you’re remortgaging, we’ll need to approve the new lender you’re moving to. Have a read of our Remortgaging and Further Borrowing Guide for more information.
Remortgaging and Further Borrowing Guide
If you pay off your mortgage, you’ll still need to continue your rent payments to us. But, you can continue to buy more shares until you own 100%. Then, we’ll no longer be your landlord, so you can stop paying rent!
*Not required for remortgaging.
Can I add or remove an owner when staircasing?
You can add or remove owners from the deed of your home, this is called ‘Transfer of Equity’. We’ve pulled together a handy guide on the processes involved.
If you’re doing this while staircasing to 100% ownership, it’s best to wait until the staircasing transaction is complete to make the transfer.
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