When can I ‘staircase’ my way to greater ownership?
As a rule, you can gradually own more of your home by what’s called ‘staircasing’ – paying to buy a bigger share – at any point (though some schemes may have time restrictions, so do please check your lease).
Whether it’s typically from saving, a work promotion or extending the mortgage, for example, you could find yourself able to bump up the size of your share in chunks of 1%, 5% or more.
How much it costs to buy the extra will depend on the value of your property when you decide to boost your share – not the price when you first bought the home.
Using the same £160,000 example as above, imagine you wanted to boost your 25% stake to 40%. You discover its market value is now £200,000 – buying 15% extra at this higher price will cost more than it did before.
You’ll also have to pay admin and legal fees each time you build up your stake. However, since you own more of the property, you’ll pay less rent in turn.
Of course, the idea is to staircase all the way to 100%. In the 12 months to April 2021, some 4,300 households [PDF, 1.2MB] bought the last percentage of their home to become owners, a government report found.