Residents

Buying more
of my home

The great thing about shared ownership is that you can buy more of your home over time, up to owning your home outright. This is known as staircasing. By owning more of your home, the share on which you pay rent reduces, which means your rent will also reduce.

The benefits of buying more shares

Buying a larger share of your home can have a number of benefits:

  • Reduce the rent you pay

    As your ownership share increases, the share on which you pay rent becomes smaller. If you are borrowing more to staircase, however, your mortgage payments may increase.

  • Own more of your home

    The more shares you purchase, the greater your ownership interest in the property.

  • Benefit from future changes in value

    Owning a larger share means you have greater exposure to any increase in the value of your home. Property values can also fall, so this should form part of your decision.

  • Work towards full ownership

    Depending on your lease, you can continue staircasing until you own 100% of your home.

When might I consider staircasing?

You can usually staircase at any time, subject to the terms of your lease.

There is no single right time to buy more shares. You may want to consider it if your financial circumstances have changed, for example following:

  • an increase in your income;
  • a new job or promotion;
  • receipt of a bonus, inheritance or other savings;
  • a change in your mortgage arrangements; or
  • simply because you are in a position to invest more in your home.

Before making a decision, you may wish to speak to your mortgage lender or an independent financial adviser about affordability and the options available to you.

Before you decide

It can be useful to get an idea of the current value of your home and consider how much additional borrowing or savings you may need.

Online property websites and local estate agents can give you an indication of value, but if you decide to proceed, a formal valuation will be required in accordance with the terms of your lease.

You should also consider the other costs associated with staircasing, which may include valuation, legal and mortgage costs.

How much can I buy?

The minimum and maximum amount you can buy at each stage depends on the staircasing provisions in your lease. Some leases allow interim staircasing only within certain percentage limits, but final staircasing can take you to 100% ownership.

Your lease sets out the exact provisions that apply to your home.

How staircasing works, step by step

  1. Check you are ready to proceed

    Make sure your rent, service charges and any other sums due under your lease are up to date.

  2. Get a valuation

    Arrange a valuation by an independent RICS surveyor to establish the current market value of your home.

  3. Tell us how much you want to buy

    Send the valuation to Pinnacle and confirm the additional share you would like to purchase.

  4. Arrange the legal and financial side

    You will need to appoint a solicitor and arrange any mortgage or other funding you need. There may also be administration and valuation costs associated with staircasing.

  5. Complete

    Once the transaction completes, we will confirm your new ownership share and your rent will be recalculated to reflect the smaller share that you do not own.

When you reach 100%

Once you staircase to 100%, you will no longer pay shared ownership rent. What happens to the legal ownership of your home, and any ongoing estate or service charges, will depend on your property and the terms of your lease.

Selling your home

You do not need to staircase to 100% before you can sell your shared ownership home. You can sell the share you already own, or in some circumstances staircase and sell at the same time. The process that applies will depend on the terms of your lease.

You can also sell your shared ownership home without staircasing to 100% first. If you decide to sell, the share of the sale proceeds you receive will reflect the percentage of the home that you own.