1% Staircasing - what does it mean?

What is staircasing? 

'Staircasing' is the term used for buying more shares in your home, after you buy your initial share. The more shares you buy, the more of your home you own, and the less rent you pay to us, as our share gets smaller. This also means that you get a bigger share of any equity if you decide to sell your home. 

All shared owners can staircase in the ‘traditional’ way (read more HERE), but under the new Shared Ownership model lease you’re also eligible for a 1% annual staircasing transaction without any legal, valuation or admin fees*:

1. Once a year we’ll send you the valuation of an additional 1% share based on the UK House Price Index.  If the timing isn't right for you to buy an additional 1%, you can contact us for an updated 1% valuation at any point in the year.  These valuations last for 3 months.
2. You can accept this valuation or instruct your own valuation (*you’ll need to pay for a RICS valuation if you want to challenge our valuation).
3. If you do want to purchase an additional 1% for that year, then you must tell us - the easiest to do this is to log onto MySovereign.
4. We'll do some checks, get things ready, and be in touch with the next steps.
5. You bank-transfer the cost of the 1% share to us.
6. We send you a statement confirming the share you now own and reduced rent payment.
7. Land Registry is informed of the new share of the property that you own.

Please note:

• You will not be able to 'roll over' any 1% staircasing transactions from year to year. I.e. you can only do 1% per year this way. For example:
  • If you opt not to complete a 1% purchase in year 4 you cannot buy 2% in year 5
  • Nor would that year’s allowance be added to the end of the 15 year period
• Some leases contain restrictions to the maximum amount of shares that can be purchased. These will be explained to you as part of your initial purchase
• Stamp duty will be payable if your staircasing transaction take the shares you own to 80% or more