We partnered with Gary Whitehead, Director at Town & County Mortgage Services and Joel Taylor from Owen Paulo to host a special online event designed to demystify the staircasing process for our residents. Our session covered everything, from a back-to-basics explanation of what staircasing is and how it works, through to a step-by-step breakdown of everything you need to do to increase the share you own in your home.
Here, we’ve provided an overview of everything you need to know to start your staircasing journey.
What is staircasing?
Staircasing is the process of gradually buying more shares in your shared ownership home. When you first move in, you typically own a percentage of the property (e.g., 25% or 50%) and pay rent on the remainder. Over time, you can buy additional shares — up to 100% — meaning you eventually own your home outright if you choose.
The staircasing process in 5 easy steps
- Line up a solicitor: You’ll need a solicitor to represent you throughout the staircasing process and handle all legal matters related to increasing your ownership share.
- Complete the application form: The application form is available here. If you need help or have questions, the Gateway Housing sales team is just an email away at sales@gatewayhousing.org.uk.
- Independent valuation. Gateway Housing will arrange for an independent surveyor to value your property. This ensures a fair price for your additional shares.
- Seek financial advice: Before proceeding, it’s important to understand your financial position. Speak with a financial advisor who can help you assess whether staircasing fits your budget and goals.
- Make the purchase decision. Once you have the valuation and financial advice, you can decide if you want to go ahead with buying more shares in your home.
The legal side to staircasing
When staircasing, you will need to instruct a solicitor to handle the legal side of your staircasing journey.
The legal process typically takes around 10 to 12 weeks, although this can vary depending on your individual circumstances. This timeline will align with your property valuation as much as possible, which is usually valid for three months. If the process takes longer, you may need to request an extension or commission a new valuation.
In terms of cost, you should budget approximately £1,500 to £2,200 to cover solicitor fees and related expenses. Using a solicitor who specialises in shared ownership is advisable, as solicitors that don’t focus on shared ownership may charge higher costs.
Here’s a breakdown of the typical legal steps involved, as explained by our panellist Joel:
- Obtain Land Registry documents: Your solicitor will obtain copies of the title documents for your property.
- Raise enquiries: Any necessary enquiries or clarifications will be addressed.
- Draft Memorandum of Staircasing: Your housing association drafts this document for approval by all parties.
- Mortgage review: If you’re using a mortgage, your lender will review the draft memorandum.
- Conduct searches: Any required searches related to the property or area will be undertaken.
- Compliance and identity checks: Standard checks will be completed to ensure compliance and verify your identity.
- Completion: The goal is to complete the process within the valuation’s validity period.
Mortgages
When lenders calculate how much you can borrow, they look beyond income. Factors such as your loan-to-value ratio, credit score, salary and mortgage term all play a role. A mortgage broker can guide you through this assessment and help find the best product for your situation.
Brokers are especially helpful when staircasing. They can review your current mortgage, renegotiate with your lender or find a better deal on the market, ensuring you get the best value, whether staying with your current provider or switching.
As for deposits, it depends on your equity. If you have enough, you can usually staircase without needing additional funds. If not, a top-up deposit may be required to complete the purchase.
How can Gateway help?
We’re here to guide you every step of the way, making the staircasing process as straightforward and stress-free as possible. To support your staircasing journey, we’re currently offering some great incentives:
- Valuation fee reimbursement: When you complete your staircasing, we’ll reimburse your valuation fee.
- Legal fees covered: Use one of our panel solicitors, and we’ll cover Gateway’s legal fees. You’ll only pay your own solicitor’s costs.
- No-obligation mortgage consultation: You can explore your options, receive expert guidance and potentially find a better mortgage deal without any commitment.
Got questions? Reach out, we’re happy to explain anything in more detail.
Want to learn more?
Our webinar covered these points in detail along with many great questions from attendees. To watch the full webinar or get more information, email us at Sales@gatewayhousing.org.uk.
Ready to take the next step? Contact Gateway Housing today and start staircasing towards full home ownership!