Staircasing is the term given to buying extra shares in your shared ownership property. All shared ownership leases include provisions for portioned percentage staircasing.

Some leases also include provision for additional percentage value (1%) staircasing within a prescribed time period. Please check your lease for details applying to your specific lease agreement.

Where your lease includes both types of provision, these are separate processes and you should consider which is more suitable for your circumstances when making any decision about staircasing.

What will staircasing change?

Partial staircasing:

Where you buy more shares of your home - but still do not own 100% of your property:

• Specified Rent paid to WDC will decrease by the percentage of the property purchased during staircasing
• Buildings insurance paid to WDC will increase by the percentage of the property purchased during staircasing
• Any applicable ground rent or service charges will remain the same

Final Staircasing:

Where you buy all of the remaining shares of your home and at completion own 100% of the property.

Not all shared ownership leases allow you to purchase 100% of the shares in your home. Please check your lease.

If the property is in a shared building - such as a flat or maisonette:

• It will become a leasehold property
• you will still be required to pay applicable ground rent, estate management charges and service charges to WDC
• you will still be required to pay for buildings insurance, although there may be an option to arrange a suitable insurance policy with an alternative provider with permission from WDC - for more information see leaseholder insurance.
• you will not need to pay specified rent to WDC 

If the property is self-contained - such as a terraced house, and you have requested and been granted the freehold of the property on completion:

• you will become responsible for the payment of any applicable estate management charges to the estate management company
• you will become responsible for arranging your own buildings insurance policy
• you will not need to pay specified rent to WDC

How does additional percentage value (1%) staircasing work?

Additional percentage value staircasing - where included in your lease agreement - makes provision for purchasing 1% of your property each year for a specific number of years to increase the share of the property you own in a more affordable way.

As a small percentage is being purchased, shared owners are more likely to be able to purchase more of their home through savings. The process follows a prescribed formula to calculate the price to pay for the additional percentage, so a new valuation report is not needed, reducing the cost incurred by instructing a valuer, and potentially reducing legal fees.

Once the value of the additional percentage is calculated by WDC, it will remain valid for completion of the purchase of the 1% for 3 months.

If your lease includes this provision, and you would like to request an additional percentage value notice from WDC

• you have not received one in the last 3 months,
• and expect to be able to complete the purchase within the next 3 months,

please select this option on our online shared ownership form below.

Due to the index linked elements of the formula used we are unable to give unofficial estimates of this cost - but the cost at the point of taking out the lease is listed in the lease, and annual notices, valid for 3 months, will be sent out with rent review information.

How does portioned percentage staircasing work?

Most leases allow you to buy extra shares after you have owned your initial shares for three months. You will need to check your lease to confirm staircasing multiples and percentage allowed.

You will submit an intention to staircase form and an eligible valuation to WDC (see guidance below) we will provide confirmation of the capital cost to pay for the requested share. This cost is valid for completion within 3 months of the date of the valuation report.

After 3 months, a new valuation or extension will be required - your valuer is likely to charge additional fees for this - and the capital cost of your requested share will change if the valuation changes.

How much will I pay for extra shares?

The shares will be sold at the current market value, disregarding any improvements to your home that we have consented to in writing. The assessment of the current market value will be made by a Royal Institute of Chartered Surveyors (RICS) qualified valuer, by way of an open market valuation of the property.

Which valuer can I use?

You are responsible for obtaining your own valuation; the report should be submitted to Warwick District Council, with the intention to staircase form.

Before instructing your chosen valuer, you must ensure they are RICS qualified and current members; failure to do so will mean that Warwick District Council is unable to agree to your chosen valuer. You can locate a valuer and check they are qualified through the RICS website.

We recommend you obtain several quotes and query if the valuer will charge you for extensions should they be required.

We recommend that the valuation report be prepared after you have agreed financial arrangements in principle - due to the 3 month completion deadline. 

The valuer will complete the valuation on the following terms in line with their RICS guidance:

The open market valuation will value the property as 100% leasehold or freehold with vacant possession and will assume the shared ownership lease had not been granted. Improvements with written consent and/or failure to keep the property in good repair will be disregarded.

Please note that an estate agent’s valuation is not acceptable; under the terms of the lease, the valuation must be carried out by a RICS qualified surveyor. Whichever valuer you choose, you are responsible for their fee.

How long is the valuation valid for?

The valuation is valid for three months. If completion has not occurred within three months, then either a revaluation or an extension will be required. Your valuer may charge for this.

What happens if I am not happy with the valuation figure?

If you dispute the value provided by your RICS valuer, you can challenge this by providing a written reason for your concerns directly with your chosen valuer. You should provide evidence of the sale prices of at least three similar properties in your area. You may then request that your valuer reconsiders their opinion.

If you are still not satisfied with the outcome, you may instruct another RICS qualified valuer to revalue the property at your expense. Warwick District Council will not be involved in this process and should only be forwarded the report once you are happy to proceed.

Why are improvements disregarded?

If you have made improvements to your home (such as fitted double glazing, for example) and we have consented in writing to these improvements, you may ask the valuer to disregard the value the improvements have added to the open market value of your home.

The improvements are disregarded because they do not form part of our share. For example, if your home is valued at £150,000 with the double glazing but would have been valued at £148,000 if the double glazing had not been fitted, then the value of £148,000 will be the figure used to work out the value of the extra shares. We will check our files to make sure that the improvements have received our written consent.

The difference in valuation figures will not usually be the same as the figure paid for works to the property.

How do I start the staircasing process?

• You must submit the full valuation report, including notes, to us with the online intention to staircase form (below).
• We will provide you with written confirmation of how much the additional shares will cost.
• this written confirmation can be provided to your mortgage lender
• Once we have confirmed to you the price, you need to let us know if you wish to proceed.
• You will need to instruct a solicitor and confirm their details to us.
• if final staircasing and self contained - request the freehold be transferred
• if partially staircasing we will require a copy of any applicable mortgage offer

Is there anything else I will have to pay?

You will be responsible for administration fees, the valuation fee, your solicitor’s fee and (if applicable) your mortgage arrangement and redemption fees.

Application

Shared ownership resale, staircasing or remortgaging application