staircasing

Staircasing is a process used in shared ownership or co‑ownership arrangements where a leaseholder increases their equity in a property by purchasing additional shares from the landlord or housing association. This typically allows a purchaser to move from an initial minority stake toward full ownership, often in predefined increments such as 10% or larger, though the exact terms depend on the lease.

The amount paid for extra shares is based on the current market value of the property at the time of purchase. The price for the additional shares is proportional to the portion being bought, and buyers may need to obtain a professional valuation. In most cases, purchasers must cover costs such as legal fees, a valuation, and, in some jurisdictions, stamp duty or other transfer taxes. Mortgage lenders may also require re‑financing or additional assurances when increasing ownership.

The process generally involves checking the lease terms, requesting a valuation, negotiating the price with the landlord or housing association, paying for the new shares, and updating the title deeds or lease to reflect the higher stake. Depending on the lease, staircasing can proceed in steps toward 100% ownership, after which rent payments on the unowned portion cease and the buyer becomes the sole owner.

Considerations include ongoing charges associated with the remaining share (such as rent and service charges), potential changes to insurance or management arrangements, and the impact on eligibility for future assistance or mortgages. Staircasing offers a path to greater control and eventual full ownership, but it requires careful assessment of costs and terms. Related concepts include enfranchisement and other forms of shared ownership.