Shared Ownership Staircasing: The Complete Conveyancing Process
Staircasing is the process of purchasing additional shares in your shared ownership property, allowing you to reduce your rent and increase your equity. While the concept is straightforward, the legal journey involves specific conveyancing hurdles, such as satisfying Land Registry restrictions and executing a deed of covenant.
Whether you are staircasing in the lowest increment of 10% (or even 5%), or staircasing to own 100% of your home, understanding the timeline and your solicitor's role is vital to ensure your ownership is recorded correctly, without unexpected delays or costs.
Key staircasing requirements and processes:
- Minimum Share Size: While historically 10%*, many providers now allow minimum staircasing increments of 5%. Some newer models allow for 1% per year for the first 15 years.
- RICS Valuation: You must pay for an independent Royal Institution of Chartered Surveyors (RICS) Staircasing Valuation to determine the current market value of your home, as the shares are bought at current prices, not the original price.
- Valid Valuation: Valuations expire in three months, so you must complete the transaction within this timeframe.
- Formal Request: You must inform your housing association in writing of your intent to buy more shares.
- Professional Fees: You will need to instruct a specialist solicitor or conveyancer to handle the legal transaction.
- Financial Assessment: You must demonstrate you can afford the additional shares and the associated legal/valuation fees.
- Limitations: Some leases have restrictions on how many times you can staircase, often capping it at three times, which encourages buying large percentages at once.
*Note: For new-build Shared Ownership under the 2016-2021 programme, the minimum is 10%. The "1% per year" rule applies to newer leases to encourage gradual staircasing without needing a formal valuation or expensive legal fees.
What is the new 1% staircasing rule?
If you have a New Model Lease (drafted since 2021-2026), the scheme gives you the right to purchase 1% additional shares every year for 15 years from when you first bought.
This scheme doesn't require a full RICS valuation. Instead, the price is based on the House Price Index (HPI). This is a huge "value-add" for modern shared ownership homeowners and prevents you from spending money on a valuation.
How to Staircase: The 8-Step Conveyancing Process
The shared ownership staircasing process has 8 critical stages that require a variety of professionals: a RICS surveyor, a solicitor, a mortgage lender, a housing association, and any additional freeholders.
- 1
Get a RICS Valuation
To work out the amount you need to pay for staircasing your share, the housing association requires a RICS valuation. The valuation is for the current market value of your property and is based on recently sold properties in the area. A RICS valuation isn't the same as an estate agent's valuation, and it must be delivered in accordance with the updated Global Standards (the ‘Red Book’), effective from 31 January 2025.
We have a national network of local RICS surveyors, so get in contact if you need a valuation.
- 2
Instruct a solicitor
You need a specialist Shared Ownership Solicitor to handle your staircasing conveyancing. You need to provide the name of your solicitor to your housing association when you apply.
We have a specialist shared ownership solicitor, so get in contact if you need help with your staircasing.
- 3
Apply to your housing association
Once you have your valuation and your solicitor's details, you must submit an application to your housing association, stating your intent to purchase a bigger share.
- 4
Organise your funding
Mortgages for shared ownership are specialist products and can take upwards of 4 weeks to issue a mortgage offer, so do not delay in applying. If you are funding the staircasing without taking a larger mortgage, you'll need to pass source-of-funds checks with your solicitor.
- 5
Memorandum of Staircasing
The Memorandum confirms the housing association accepts your offer and sets out the share you are purchasing and the shared ownership premium. The memo should be accompanied by a contract pack that includes a management pack (service charge & ground rent accounts).
- 6
The legal work
Your solicitor raises legal enquiries with the housing association and drafts the Land Registry AP1 Form. The enquiries include addressing any issues with the lease, memo, service charge/ground rent accounts, deed of covenant/certificate of compliance, and completion requirements.
- 7
Completion takes place
There is no exchange of contracts with staircasing, so once your solicitor has your funding in place and satisfied enquiries, they can progress to completion.
- 8
Post Completion
Your solicitor files your Stamp Duty return, receives the SDLT5 Certificate (receipt), obtains a notice to complete from the housing association, and then submits all the requisite documents to the Land Registry to update the title. The Land Registry can take over 6 months to update your title.
What documents are submitted to the Land Registry?
Form AP1 (Application to Change the Register)
This is the master application form. It serves as a cover sheet for the Land Registry, listing the title number, the names of the owners, and all accompanying documents. Your solicitor will use this to officially "request" that the Registry notes your increased share.Certified Copy of the Memorandum of Staircasing
This is the most important piece of evidence. The memorandum is the legal "receipt" signed by both you and the housing association. It confirms the transaction date, the premium (price) you paid for the extra shares, and your new total ownership percentage (e.g., moving from 25% to 50%).Certificate of Compliance
Shared ownership titles have a "Restriction" that prevents the property from being transferred unless the process is followed. This restriction prevents any changes to the register unless the housing association confirms that the lease rules have been followed. The Certificate of Compliance is the housing association’s way of telling the Land Registry: "We have received the money and the paperwork; you are now clear to update the title".SDLT5 Certificate (Stamp Duty Receipt)
Even if you didn't have to pay any Stamp Duty (SDLT) on this specific transaction, your solicitor must often still file a return with HMRC if your total ownership now exceeds 80%. The Land Registry requires the SDLT5 electronic receipt as proof that the tax office is aware of the change in equity.Mortgage Deed
If you took out a new mortgage or increased your existing one to fund the staircasing, your solicitor will submit a new Mortgage Deed. This ensures the lender’s "Charge" is correctly registered against your updated share of the property.
Expert Tip - Get a valuation as late as possible
The valuation expires after 3 months, and your solicitor will need as much time as possible to finalise the staircasing legal work. You should instruct your solicitor and apply to the housing association as soon as you get your valuation back from your RICS surveyor.
Focus on getting your mortgage after you have started the legal process with your solicitor. You should also ask your surveyor to confirm their fee for extending the valuation if it expires. You can save money by knowing this because some surveyors will agree to a reduced fee for extending the valuation.
You can also reduce the value of your property and the amount you pay to staircase, if you've made material upgrades. The RICS valuer should "disregard" value added by the owner's improvements (e.g., a new conservatory), provided the owner has written consent from the housing association for the works.
Andrew Boast FMAAT
CEO of SAM Conveyancing
Costs of staircasing: valuation, legal fees, and SDLT
There are a variety of costs to pay each time you staircase with your housing association. We include a complete breakdown below.
Description | Cost |
RICS Staircasing ValuationAn independent RICS surveyor inspects the property's condition and then researches recently sold properties to provide a current market valuation. The valuation reports last for 3 months; however, a desktop revision can be provided if this time lapses at a reduced rate. | £360 INC VAT |
Staircasing solicitor's legal feesThe cost will vary depending on which solicitor you choose. This is a list of work that your solicitor needs to include in their quote:
If your property is affected by the Building Safety Act, additional legal fees may be payable to secure your leaseholder protections. | £1,200 to £2,400 INC VAT |
DisbursementsThese are third-party costs the solicitor pays for on your behalf, such as Land Registry office copy documents, title plans, and leases. | Circa £100 |
Stamp Duty when staircasingStamp Duty Land Tax is not payable if your share reaches more than 80%, you don’t pay any more SDLT or tell HMRC about the transactions in an SDLT return. This is whether or not you paid any SDLT on the first transaction. It is important to check the Government Guidance. | £TBC |
Land registrationThe Land Registry cost is based on the full property price. | £20 - £140 |
Local authority search indemnity (if remortgaging)Unless your mortgage lender instructs otherwise, your solicitor must obtain local authority search indemnity insurance. The cost is based on the full property price. | £40-£100 |
Housing association’s administration feeThe housing association charges an admin fee for handling the staircasing.. | £150-500 |
Freeholder costsYou must pay for the freeholder costs for:
| Circa £300 to £500 |
Key legal documents: deed of covenant and certificates
The staircasing process is often underestimated, and it is assumed it should be completed fairly quickly. The reality is that the process will take months, cost much more than you budgeted, and cause frustration.
These are some of the legal documents in the process that are critical to complete a staircasing transaction.
What's a deed of covenant?
A deed of covenant is a formal legal document in which a party (the owner) makes a direct promise to another party (the housing association or Landlord) to comply with the terms of an existing lease.
In the context of shared ownership and staircasing, its primary function is to create a "privity of contract." While the lease itself contains rules, a deed of covenant ensures that any person currently holding an interest in the property is personally bound to the positive obligations of that lease, such as paying service charges, maintaining the building, or adhering to usage restrictions.
- The Process: The housing association’s solicitors typically draft the deed. It must be executed as a deed, meaning the owners must sign it in the presence of an independent witness.
- The Requirement: A restriction is usually placed on the Title Register at the Land Registry. This restriction prevents the registration of any change in ownership (or the completion of staircasing) until a deed of covenant has been signed and delivered to the housing association.
A solicitor will normally charge £150 INC VAT for this legal work, plus you are liable to pay for the housing association's legal costs
What's a Certificate of Compliance?
A Certificate of Compliance is a document issued by the housing association (or their solicitor/management company) which serves as formal evidence to the Land Registry that the requirements of a specific restriction on the title have been met.
The certificate is issued when the housing association is satisfied with the owner's actions. Without this, the staircasing solicitor can't satisfy the terms of the restriction on the title at the Land Registry.
Before issuing the certificate, the housing association will verify that:
- A valid deed of covenant has been executed and returned.
- All financial enquiries have been settled, including any arrears in rent or service charges.
- Relevant administration fees for the staircasing process have been paid.
Without this certificate, the Land Registry will refuse to update the Title Register to reflect the new share of ownership. It effectively confirms that, from the point of the original purchase to the current staircasing event, the leaseholder has remained in "good standing" with their legal obligations.
A solicitor will normally charge £150 INC VAT for this legal work, plus you are liable to pay for the housing association's legal costs
Expert Tip - Pay all of your service charges and ground rent
Your housing association won't allow you to staircase if you owe them any money. You should make sure your service charge and ground rent accounts are up to date.
Andrew Boast FMAAT
CEO of SAM Conveyancing
Stamp Duty: Is payable on all the shares you own
Many owners don't realise that once they cross the 80% ownership threshold, they are liable for Stamp Duty Land Tax on all previous staircasing steps if they didn't make a Market Value Election when they bought the property.
For example, if you are staircasing from 25% to 85%, and you didn't elect to pay any stamp duty when you purchased the property, you are liable for the stamp duty on the 85% share, not the 60% you are staircasing.
Frequently Asked Questions About Shared Ownership Staircasing
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.
