Shared ownership has become a popular route onto the property ladder, particularly in high-cost areas like London. But owning a share of a property is just the beginning. Over time, many homeowners consider increasing their equity through a process called staircasing. This article explains what staircasing is, how it works, and the benefits and challenges involved — especially for buyers and investors navigating the London property market.
Staircasing is the process by which shared ownership buyers purchase additional shares in their property. This allows them to gradually increase their ownership from the initial share — typically between 25% and 75% — up to full ownership in many cases.
The key features of staircasing include:
Incremental ownership: Buyers can purchase more shares as their financial circumstances improve.
Reduced rent: As your ownership stake increases, the rent paid on the remaining share decreases.
Potential for full ownership: In most cases, buyers can eventually staircase to 100% ownership.
The staircasing process typically follows these steps:
Valuation: A RICS-certified valuation is required to determine the current market value of the property.
Share Calculation: Based on the new valuation, the cost of the additional share is calculated.
Mortgage or Savings: Buyers can use savings or remortgage to fund the purchase of the new share.
Legal Process: A solicitor is required to manage the legal side of the transaction.
Completion: Once finalised, ownership documents are updated, and the rent payable is adjusted.
Note: Some schemes allow buyers to staircase in as little as 10% increments, while others may require a minimum of 25%.
London's property market is known for its high entry costs, making shared ownership an attractive initial step. Staircasing provides a strategic way to build equity without the need for a large upfront investment.
Key benefits of staircasing in London include:
Increased asset value: As London property prices grow, your equity becomes more valuable.
Greater financial control: Less rent means reduced long-term housing costs.
Improved resale potential: The more you own, the more you gain from property value appreciation.
While staircasing has clear benefits, there are practical and financial factors to consider:
Costs: Staircasing involves valuation, legal fees, and potential stamp duty if buying over certain thresholds.
Market conditions: If property values increase rapidly, additional shares become more expensive.
Restrictions: Not all shared ownership leases allow for full staircasing, and some limit how often you can staircase.
Consulting with a knowledgeable property adviser is essential to evaluate whether staircasing aligns with your long-term goals.
At Fraser Bond, we specialise in helping buyers and investors navigate the complexities of the London real estate market, including shared ownership and staircasing. Our team provides:
Expert advice on the staircasing process and lease terms
Access to experienced solicitors and RICS-certified valuers
Guidance on financing options and mortgage restructuring
Support with shared ownership resales and full ownership transitions
Whether you’re considering your first staircasing step or aiming for full ownership, Fraser Bond is here to help you make informed, strategic decisions.
Shared ownership staircasing offers a pathway to full property ownership — particularly valuable in London’s competitive market. While the process can be complex, the long-term benefits of increased equity and reduced rent make it a worthwhile consideration for many buyers. With the right guidance and support, staircasing can be a powerful step toward financial independence and property security.
