If you want to sell your Shared Ownership home, back-to-back staircasing (also known as a simultaneous sale) might be an option for you. This is where you staircase to full ownership and complete the onward sale of your home on the same day. Let us explain...
How back-to-back staircasing works
If you own 50% of your home (for example) then the buyer will purchase your share and our share in the home (also 50%) at the same time. You’ll staircase to 100% ownership (funded by the incoming buyer purchasing our share in the property), and transfer your interest in the property to the buyer on the same day. The proceeds are then split based on our shares in the home, in this case 50% each.
This is a slightly more complex process than only selling your share in the home, as the sale can only proceed if both transactions complete simultaneously. It means the solicitors for the seller, the buyer and the housing association all need to coordinate closely. As the seller, you will need your solicitor to handle the staircasing process, as well as the legal aspects of the sale.
When to consider back-to-back staircasing
At the end of your ‘nomination period’
The ‘nomination period’ is the timeframe during which we (SNG) have exclusive rights to find a buyer for your property (typically between 4 and 12 weeks). In most cases, you’ll only be able to sell your home on the open market once our ‘nomination period’ has ended. However, we will consider waiving the nomination period in exceptional circumstances.
If you’d rather sell your home through an estate agent from the start, you can choose to work with SOWN – our partner agent for Shared Ownership resales – and we’ll waive our 'nomination period'. Just so you're aware, they'll still need to market your home at the share you own for the first four weeks, unless there are exceptional circumstances.
Large share
If you own a large share in your home, selling at the full market value could widen your pool of interested buyers.
Short lease length
If your lease is on the shorter side (under 85 years) and allows the incoming buyer to obtain the freehold, then back-to-back staircasing might be a good option as it will remove the lease from the property.
If you’re unsure about any information relating to your lease, get in contact with our dedicated staircasing team.
Can all shared owners do back-to-back staircasing?
Not all Shared Ownership homes are eligible for back-to-back staircasing. For example, if your home is under a DPA (Designated Protected Area) then you’ll typically only be able to staircase to 80% ownership, and therefore cannot sell at the full market value.
Remember that you can always contact the SNG staircasing team if you have questions about your lease or about selling your Shared Ownership home.
Will you need to pay stamp duty?
As the seller, you shouldn’t have to pay stamp duty when you staircase and sell simultaneously, as you should be able to claim a stamp duty sub-sale relief. However, you will need to seek legal advice from your solicitor to confirm this. If you need legal support, you can access SNG’s panel of handpicked, independent solicitors, all of whom have Shared Ownership expertise.
For more information on staircasing, check out the staircasing section of our website or call our helpful team on 0300 330 0718.