LEGAL
Staircasing is the process where the leaseholder purchases further shares of their property from their landlord, this is usually done in tranches of 10% or more. However, each staircasing transaction includes a variety of costs, and so it is advisable to purchase the largest additional share possible each time. Joel Taylor, Head of Business Development and Marketing at Owen Paulo Legal, explains how it works Staircasing:The difference between Interim and Final Staircasing
There are two different types of staircasing transactions, Interim Staircasing and Final Staircasing.
INTERIM STAIRCASING: This is where the total percentage owned after completion is not 100% (or the highest amount allowed by the lease) – so for example staircasing from 50% to 75%. After completion, the owner will still be a shared owner and rent and service charges will still be payable to the landlord, although the rent will be decreased accordingly (as the shared owner will only pay rent on the share that they do not own). FINAL STAIRCASING: This is where the total percentage owned on completion equates to 100% of the lease (or the highest allowed by the lease). Upon completion of the transaction the owner will no longer be a shared owner, but whether the property is a house or a flat will influence the ownership of the property. If the property is a house, then in most cases the lease will “fall away” and the property becomes a freehold. With an apartment, however, the property will remain leasehold, and services charges will continue to be payable. The rent will be reduced to “nil” although ground rent may still be payable Certain provisions of the lease will also be excluded, specifically the Shared Ownership elements.
However, the current Stamp Duty rules are that Stamp Duty is only payable on a staircasing transaction that makes your total share 80% or higher, and on any further staircasing thereafter.
additional purchase and what is affordable for you. Once you know this, you will need to contact your landlord to advise them of your intention to staircase and get a valuation done, as the price of your additional share is based on the market value at that time. Once your valuation is done, it is then recommended that you instruct a solicitor. Valuations only have a shelf-life of about three months and so the longer you leave it before you instruct a solicitor, the more likely it is that an extension or a new valuation will be needed.
CONCLUSION:
The staircasing process can be quite complex and depending on whether you are proceeding with Interim Staircasing or Final Staircasing, whether the property is a flat or a house, and whether you are linking it with another transaction (such as a remortgage or a lease extension) can take approximately 10-12 weeks, on average. Therefore, it is always advised that you use a solicitor that is knowledgeable not only in Shared Ownership, but in staircasing transactions to ensure that your process is as smooth and stress-free as possible. Owen Paulo specialises in resales and staircasing and we are happy to offer further advice or a quotation. Please visit our website, email enquiries@owenpaulo.co.uk, or call us on 0808 196 7020
STAMP DUTY:
The big, and confusing question. How much will Stamp Duty be? The calculation for Stamp Duty can be complex and is influenced by the current Stamp Duty rules, how much was paid upon initial purchase and the rules at the time of that purchase. It is therefore difficult to be able to advise precisely, until your solicitor has full information on the property’s history.
HOW DO I START THE STAIRCASING PROCESS?
You will first need to speak to a financial adviser to discuss how you are funding the
98 First Time Buyer April/May 2026
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