How 1% staircasing works
All shared owners can staircase in the ‘traditional’ way (read more HERE), but customers with a new Shared Ownership model lease are also eligible to staircase in increments of 1% every year for the first 15 years of ownership.
- Once a year we’ll send you the valuation for the cost to buy an additional 1% share of your home. This valuation is determined by 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 are valid for 3 months.
- If you do want to purchase an additional 1% in that year, then you must tell us - the easiest way to do this would be to contact our Staircasing team via email
- We'll carry out the necessary checks, and once everything is ready, we'll contact you with the next steps, including instructions for transferring the cost of the 1% share to us. Please note, this cannot be paid via a mortgage.
- We send you a statement confirming the share you now own and reduced rent payment.
- Land Registry is informed of the new share of the property that you own.
Please note:
- You cannot 'roll over' 1% staircasing transactions from year to year. If you wish to buy more than 1% in a given year then you can do so via traditional staircasing.
- Stamp duty will be payable if your staircasing transaction take the shares you own to 80% or more.
FAQs
Buying more shares in your home has a number of benefits:
- Buying more shares in your home means you reduce the amount of rent you pay to SNG
- When you decide to sell your home, the greater percentage you own, the more profit you will make if the value of your home has increased
- If you own 100% of your property, in most cases you can sell your property on the open market using an estate agent of your choice
- If you buy the remaining shares in your home and own 100% of your property, in most cases you can sell your home to anyone interested in buying it and are not restricted to those applying for affordable homes -this will need to be confirmed by us