Staircasing

Buying more shares in your Shared Ownership home

As a leaseholder of a Shared Ownership property bought either new, as a resale or via Social HomeBuy, you can buy further shares of your property. This process is known as “Staircasing”, enabling you to own a greater proportion of your home. The greater the share you buy of your home, the less rent you pay to Peabody. If you Staircase to 100% you become an outright owner and pay no rent.

The price you pay for any extra share is based on the market value of your home at the time you wish to buy, which could go up or down. The value will be set by an independent RICS-qualified valuer. There will be some costs involved in Staircasing such as a valuation fee and solicitor’s fees, although it shouldn’t cost as much as buying your first share.

Buying additional shares of the property is known as 'Interim Staircasing'. However, if you staircase to 100% (either in one transaction or after one or more interim Staircasings) the share that takes you to 100% ownership is known as 'Final Staircasing'. When this occurs, you own the property outright and are no longer a shared owner. In this case you will not pay rent to Peabody but you will still pay the service charge and may have to pay an annual ground rent.

Download our Guide to Staircasing
Staircasing Guide

What are the benefits to Staircasing?

Most people aspire to own their own property and you made the step towards this when you bought your affordable home, even if you do not own outright.

Buying a greater proportion of your home has a number of benefits:

  1. You reduce the amount of rent you are paying to Peabody.
  2. If you decide to sell your home, the greater percentage you own the more profit you will make if the value of your home has increased. 
  3. If you own your property outright (become a 100% owner) you can sell your property on the open market using an Estate Agent of your choice. 

How do I Staircase and buy more shares?

The first step to Staircasing and buying more shares in your home is to complete the Staircasing Enquiry Form. 

Once you have completed the form, you will receive an email detailing the next steps you need to complete including contacting an Independent Mortgage Advisor (IMA) and contacting a Surveyor to get a property valuation. 

Complete the Staircasing Enquiry Form

 

Find out more from Peabody:

Selling your home

Selling your Shared Ownership home is a straightforward process and is known as a resale. You can sell your Shared Ownership home at any time.

Lease and lease extensions

When purchasing a property, you will sign a lease which states your rights and responsibilities as a leaseholder. You can also request to extend your lease.

Remortgaging

Remortgaging occurs when you move from your existing mortgage lender to another lender. We can help guide you through remortgaging your home.

Selling your home if you live in a block of flats

Some leaseholders may experience issues securing mortgages for homes which are in blocks of flats as a result of changes in building safety advice. Please seek advice directly from your lender or mortgage broker before applying so that you do not incur any unnecessary valuation or solicitors' costs.