Staircasing

Buying more shares in your home

As a leaseholder of a shared ownership property, you can buy further shares in your home. This process, known as ‘staircasing’, enables you to own a higher proportion of your home. The larger the share you buy of your home, the less the proportion of rent you pay to us. If you staircase to 100% you become an outright owner and pay no rent.

The price you pay for any extra shares is based on the market value of your home at the time you wish to buy more shares, which could increase or decrease. The value will be set by an independent RICS (Royal Institute of Chartered Surveyors) qualified valuer. As the leaseholder, you are responsible for arranging and paying for this.

Things to consider before starting the process

Can you buy more shares?

• Some leases do not allow you to own 100% of your home. We advise that you check your lease agreement to confirm this. If you are still unsure you can email us via homeownership@dover.gov.uk. 

Can you afford to buy more shares?

• As well as the cost of the extra shares, there are also legal costs, valuation costs, mortgage fees and administrative fees.

Home improvements and the value of your home

• Some home improvements can affect the value of your home. As a rule, only structural improvements will affect the market value of your home, such as extensions (i.e., an extension to your living area) or conservatories, but not when you have replaced the bathroom, kitchen, or flooring, unless structural work as also been carried out as part of this.
• Any home improvements you have carried out must be included on the valuation form, with evidence of the approval you obtained from us. The valuer will consider the value added, not the cost of the works.
• Your lease and our Shared Ownership Policy state that you must ask permission before you conduct any works on your property. If you did not obtain approval, then the valuer will have to disregard these from the final valuation figure.

The cost of staircasing

There are several costs associated with staircasing that you must consider prior to proceeding with a staircasing application.

Valuation fee

• Valuation fees can cost anywhere between £250 - £450 with a RICS-qualified surveyor. It may be helpful for you to obtain at least 3 quotes from three local valuers to help you decide who to proceed with. 

Legal fees

• Staircasing involves changes to your lease agreement. This means you will need the services of a solicitor. Costs can vary, so you may also wish to obtain at least three quotes from local solicitors.

Mortgage fees

• There may be charges from your mortgage company if there are changes to your current mortgage. You should check your mortgage documents to see if these are applicable. Your mortgage broker and the lender will be able to advise you if these apply.

Stamp duty

• Stamp duty may apply to your purchase. Stamp duty is a tax that is paid when a property is sold and bought. Your solicitor will be able to advise you if this will apply.

What is the process for staircasing?

The staircasing journey can seem daunting, especially if you are new to shared ownership. However, the process can be broken down into manageable steps.

1. Get an idea of how much your property is worth

• It is a good idea to have a better understanding of how much your property is worth since the value of your property is likely to have changed from when you first purchased it, however this can increase or decrease.

• To get an idea of your home’s value, before the formal valuation, you may wish to look at the local market. You can do this a couple of ways: (1) conducting research yourself by looking on property websites (e.g., Right Move and Zoopla) to see how much comparable properties have or are being sold for, and (2) asking a local estate agent to value your property (this is usually for free; however we advise that you check with the estate agent before proceeding).

2. Evaluate what you can afford

• Before starting, ensure you’ve calculated your budget accurately. This includes the cost to buy the extra share, solicitors fees, valuation costs, mortgage fees, and administrative fees. You may wish to consult with a Mortgage Broker for professional advice, or use the Staircasing Calculator on the Shared to Buy website.

3. Get a property valuation

• You must have an independent RICS-qualified surveyor to value your property. The cost of the new share will be dependent on this valuation. You are responsible for arranging and paying for this. The valuation lasts for 3 months – if you do decide to proceed with the purchase it must be completed within this period.
• You can find a local RICS-qualified surveyor by using the RICS website: RICS Find a Surveyor (ricsfirms.com).

4. Check the valuation

• It is important that you check through your valuation report. If you have any questions or concerns about the valuation, you should speak with your valuer directly to resolve them before you submit a staircasing application.

5. Complete a staircasing application

• When you are happy with the valuation report and still wish to proceed with the purchase, you must complete an Intention to Staircase Form and submit this along with a copy of your valuation report to homeownership@dover.gov.uk. We must agree to and approve the valuation before the purchase proceeds. We advise that you wait until we have responded before proceeding (we aim to have responded within 10 working days).

6. Valuation and application approved

• We will confirm to you in writing via email that we have approved your application and the valuation. Once in receipt of this your application can progress to the end stage. We will also send to you a copy of the IFA Declaration Form which you must ask your mortgage broker to complete and sign. This must be sent to homeownership@dover.gov.uk within 7 working days from the approval date.

7. Conduct a full financial assessment and submit your mortgage application

• Ask your mortgage broker to conduct a full financial assessment on affordability, complete and return the IFA Declaration form and submit your mortgage application. You must send us a copy of your mortgage offer once it has been offered. This must be sent to homeownership@dover.gov.uk.

8. Appoint a solicitor

• Instruct a solicitor who will undertake the legal work on your behalf. Your lender and solicitor should act quickly to achieve completion prior to the expiry of the valuation to prevent you incurring additional costs.
• If you or your solicitor believe the purchase is unlikely to compete before the valuation expires, you will need to get an updated valuation report. Valuations last for 3 months. If you contact the surveyor, they may be able to provide you with a valuation extension. In such cases you must submit a copy of this to us.

9. Completion

• Congratulations! Once your solicitor has completed all the necessary legal work, you will own a greater share of your home.

Contact us

If you have any questions about the staircasing process, please contact us by emailing homeownership@dover.gov.uk.