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Can you buy a Shared Ownership property outright? 

If you’re considering Shared Ownership as a way to get on the property ladder, you might be wondering whether it’s possible to eventually own your home in full. The short answer is yes, you can buy your Shared Ownership property outright, though not initially. 

This blog will walk you through how it works, from buying your first share to reaching full ownership through a process known as Staircasing. 

What is Shared Ownership? 

Shared Ownership is a part buy, part rent scheme that enables you to buy a small share of your home, and rent the share owned by your housing provider.  

This provides a more affordable path to home ownership for aspiring buyers, as it requires you to put down a smaller deposit than is usually expected.  

Although you only start with a share of your home, you will have the option to buy 100% of your Shared Ownership home in the future through ‘Staircasing’.  

How much can I afford to buy through Shared Ownership? 

To find out how much you can afford, you’ll need to speak to a mortgage advisor who can assess your income, savings, and any debts. They’ll help determine the size of the share you can buy without overstretching your finances. 

While you’re only buying a portion of the home, you’ll still need to save for a deposit, which is usually around 10% of your share’s value. For instance, buying a 25% share of a £350,000 home means your share costs £87,500, and your deposit would be about £8,750. 

You’ll also pay rent on the portion owned by your housing provider, which is typically no more than 2.75% of the remaining share’s value, plus other standard homebuying costs like Stamp Duty.  

What is staircasing? 

Staircasing is the key to eventually buying your Shared Ownership property outright. It allows you to gradually purchase more shares in your home over time, increasing your ownership in stages. 

For instance, if you initially buy a 25% share, you could later purchase another 10%, bringing your total ownership to 35%. You can continue this process, buying additional shares when you’re financially ready, until you reach 100% ownership of your home.  

Once you own the entire property, you’ll stop paying rent altogether and become the outright owner. 

How much does staircasing cost? 

The cost of staircasing depends on the value of your home and the size of the share you’re buying at that time. On average, you might expect to pay around £2,000 per transaction, including legal fees, valuation fees, and mortgage arrangement costs. 

As with your initial purchase, you’ll need to budget carefully to cover these additional expenses. 

What are the benefits of staircasing in Shared Ownership? 

One of the biggest benefits is flexibility – you’re under no obligation to staircase at a set pace, so you can do it when you’re financially ready. 

As you increase your share, your monthly rent will decrease, and eventually once you reach 100% ownership, you’ll stop paying rent altogether. 

Attend the London Home Show

Tickets for the London Home Show are free, but visitors must register in advance to attend. For more information, or to reserve your place at the capital’s no.1 first time buyer event, please visit the event page.

Share to Buy lists thousands of affordable properties across the country, including those available through Shared Ownership, Rent to Buy, and Discount Market Sale. Learn more about the different buying and rental schemes available today