100% Shared Ownership: Your Guide to Final Staircasing
Reaching 100% ownership of your property is the goal for any shared ownership homeowner. When you staircase to 100%, you become the full owner of the property and your monthly rent payments to the Housing Association cease.
Legally, your solicitor will finalise a Final Memorandum of Staircasing and, if you own a house, they will often handle the 'Freehold Reversion,' where the freehold title is transferred into your name, and the leasehold is merged or cancelled. From this point forward, you are free to sell the property on the open market without the restrictions or 'right of first refusal' typically held by the Housing Association.
The final staircasing to 100% is a significant legal milestone that requires precision, especially regarding payments to HMRC and updating the title at the Land Registry. We offer guidance on the key stages below and can help you understand the nuances of freehold reversion and SDLT elections.
What changes when you own 100%?
The final staircasing to 100% is more than just an increase; it triggers several major milestones in your property rights:
Rent Payments Cease:
This is the most immediate change. You stop paying "specified rent" to the Housing Association. You will likely still pay service charges and ground rent (if applicable), but the monthly rental element is permanently removed.The Right of First Refusal Ends:
In most standard leases, if you own less than 100%, you must offer the property back to the Housing Association for a set period (usually 8 weeks) before selling. Once you hit 100%, you can usually sell on the open market immediately through any estate agent.Full Equity Appreciation:
Any future increase in the property’s value belongs entirely to you. You are no longer "sharing" the growth in the housing market with a landlord.Freedom to Sublet:
Most shared-ownership leases strictly prohibit subletting. Once you own 100%, these restrictions typically fall away, allowing you to rent out the entire property (subject to your mortgage lender's consent).Control Over Improvements:
For houses, you no longer need a landlord’s Consent for structural changes or major renovations, though you must still adhere to standard planning permissions and building regulations. If your property is a flat, then you may still need to obtain consent.
100% Staircasing: Technical Structure
Feature | Shared Ownership (<100%) | Full Ownership (100%) |
Monthly Rent | Paid on the share you don't own. | £0 Rent (but you may have ground rent). |
Selling Method | The Housing Association have the right of first refusal for a number of weeks. | Open Market via any Estate Agent. |
Stamp Duty | May be deferred or paid in stages. | Final assessment and payment due. |
Ownership Status | Leasehold tenant. | Freeholder (Houses) / 100% Leaseholder (Flats). |
Houses vs. Flats: Does my property become freehold?
Houses: The Freehold Reversion | Flats: The 100% Leasehold Rule |
In most cases, if you own a house, you will become the freeholder once you staircase to 100%.
It is very common to have an Estate Management Fee, which means that when you sell, you will have additional work and legal fees to pay. | If you own a flat, your property remains a leasehold, even at 100% ownership.
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Updating the Land Registry: Removing the Shared Ownership Label
Updating the Land Registry is the final, essential step in your staircasing journey. While you may have paid the money and signed the deed, your property is not fully yours in the eyes of the law until the Title Register is amended to remove the shared ownership markers. The process is different for houses and flats:
- For Houses (Freehold Reversion): Your solicitor submits a Transfer Deed (Form TR1). This document officially transfers the freehold from the Housing Association to you. Once registered, the old leasehold title is "closed," and a new freehold title is opened in your name—completely removing any mention of shared ownership.
- For Flats (Leasehold): Since flats remain leasehold, the leasehold title isn't removed. Instead, your solicitor submits the Final Memorandum of Staircasing. The Land Registry then adds a note to the register stating that the shared ownership provisions in the lease no longer apply.
How is the restriction removed?
Almost all shared ownership titles contain a Form L Restriction in the Proprietorship Register that stops the sale or change to the title without something happening first.
"No disposition of the registered estate (other than a charge) by the proprietor of the registered estate is to be registered without a certificate signed by [Housing Association Name] of [Address] that the provisions of clause [Number] of the Lease dated [Date] have been complied with."
Source: Land Registry Form L Restriction
To remove this, your solicitor must:
- Obtain a Certificate of Compliance: This is a letter from the Housing Association confirming you have paid all sums due (the 100% price, rent arrears, and admin fees).
- Submit Form RX3: This is the formal Land Registry application to cancel a restriction. By providing the Certificate of Compliance, your solicitor proves the restriction is now "spent" and should be deleted from your title.
Summary of Land Registry Submissions for 100% Ownership
- Form AP1 The main application to change the register.
- Form TR1/TP1 The Transfer of the Freehold (for houses).
- Form RX3 The application to cancel the Housing Association's restriction.
- Certificate of Complaince The main application to change the register.
- HMRC SDLT5 Receipt Proof that the final Stamp Duty has been paid or reported to HMRC.
Expert Tip: The Land Registry "Backlog" Warning
Because 100% staircasing involves changing the "class of title" (especially for houses), the Land Registry may take 12 to 18 months to complete the update. If you plan to sell the property immediately after staircasing, your solicitor must expedite the application to ensure the buyer's mortgage lender is satisfied.
Andrew Boast FMAAT
CEO of SAM Conveyancing
Can I sell my home on the open market after 100% staircasing?
Yes. Once you own 100% and the Land Registry has updated your title to remove the Shared Ownership label, you can sell your property through any estate agent of your choice. You are no longer bound by the Housing Association’s Right of First Refusal or nomination period.
Expert Tip: Simultaneous Staircasing and Sale
If your Housing Association doesn't exercise the right of first refusal, or takes longer than the set time frame to sell, you can staircase and sell simultaneously. This allows you to market the property on the open market.
If you do this, you can sell the property for any price above the RICS valuation and keep the difference between the valuation and the actual sale price. For example, if the RICS valuation values the property at £300,000, and you sell it on the open market for £320,000, then you can retain the £20,000. The Housing Association can only get the amount up to the RICS valuation.
The downside is that if you sell for less than the RICS valuation, you still need to pay the Housing Association the difference. Plus, you have to pay the additional costs to bring the property up to 100%. Your solicitor will charge additional legal fees for handling the work to staircase the file, including drafting the AP1, obtaining the Certificate of Compliance, and reviewing and sealing the Final Memorandum of Staircasing.
Andrew Boast FMAAT
CEO of SAM Conveyancing
The Final Staircasing "Day One" Checklist
Once your solicitor confirms that completion has taken place, use this list to tidy up the loose ends and secure your full equity.
Financial Adjustments
- Cancel Your Rent Standing Order: Ensure you only pay for the days leading up to completion. Your Housing Association should provide a "completion statement" showing a zero-rent balance.
- Confirm Service Charge Payments: While rent stops, service charges (and potentially ground rent) usually continue. Ensure your payment method is updated to reflect only these costs.
- Check for Overpayments: If a Direct Debit was taken just before completion, request a formal refund from the Housing Association’s finance team.
- Building Insurance: (houses only) Check your insurance is updated to confirm you are covered as the 100% owner of the property.
The Legal "Paper Trail"
- Receive the Final Memorandum of Staircasing: Your "receipt" for 100% ownership. Ensure it is signed, dated, and has the Housing Association’s official seal.
- Freehold Transfer (Houses only): If you are acquiring the freehold, ensure you receive a copy of the Form TR1 (Transfer of Whole) or TP1 (Transfer of Part).
- SDLT5 Certificate: Even if you paid £0 in tax, ensure your solicitor provides the HMRC submission receipt for your records.
Land Registry & Future Proofing
- Confirm the Application is Lodged: Ask your solicitor for the "Land Registry Portal" reference number for your AP1 application.
- Request a "Notice of Discharge": If you paid off your old mortgage to start a new one, ensure the Land Registry is notified that the old "charge" has been removed.
- Calendar a Reminder: Set a reminder 12 months from completion to check your Official Copies. The Shared Ownership restriction (the Form L Restriction) must be deleted.
Frequently Asked Questions
Andrew started his career in 2000 working within conveyancing solicitor firms and grew hands-on knowledge of a wide variety of conveyancing challenges and solutions. After helping in excess of 50,000 clients in his career, he uses all this experience within his article writing for SAM, mainstream media and his self published book How to Buy a House Without Killing Anyone.
Caragh has written extensively for SAM with expertise on sale and purchase conveyancing, the Help to Buy redemption process, equity transfers and deeds, leasehold reform, RICS home surveys, shared ownership, and independent legal advice for specialist mortgage products and ownership structures.
