Staircasing is an aspect of property law which is often misunderstood, particularly within shared ownership and shared equity schemes. Initially, the homeowner purchases a portion of the property—typically between 25% and 75%—while the remaining share is owned by a housing association or similar.

Over time, the homeowner has the option to buy additional shares, thereby increasing their equity and, potentially, achieving full ownership.

Benefits of Staircasing

Key advantages for homeowners include:

• Increased equity in the property
• Reduced rent payments as ownership share grows
• Enhanced long-term security and control over the home
• Potential to acquire the freehold title on final staircasing

How does this all work?

Homeowners can acquire further shares in the property through various methods, including:

• Staircasing loans:
  • We would typically deal with secured loans such as a new mortgage or additional borrowing with a panel lender
• Cash payments:
  • The homeowner can pay cash to purchase additional shares
• Right to Buy:
  • In some cases, the homeowner may be able to purchase additional shares through the Right to Buy scheme