Staircasing costs explained (UK): valuation, legal fees, and what changes afterwards

Summary

Staircasing (buying more shares in a shared ownership home) often has two “price” elements:

1. the cost of the extra shares (based on a current valuation), and
2. the transaction costs (valuation, legal fees, admin fees, mortgage-related costs, and potentially SDLT depending on the setup).

This guide helps you budget and avoid the common surprises.

• Calculator: /shared-ownership/

Key terms (quick definitions)

• Staircasing: buying additional shares in a shared ownership home.
• Service charge: charges for maintenance/management/services (separate from rent).
• Leasehold: many shared ownership homes are leasehold, which can involve ongoing charges and permissions.

How it works

1) A valuation sets the share price

GOV.UK guidance explains that you typically need a valuation as part of staircasing. The provider uses that valuation to calculate the price of the additional shares you want to buy.

2) You’ll usually have transaction costs

Common cost categories include:

• valuation fee (often paid by the buyer)
• legal/conveyancing fees
• provider/admin fees (varies)
• mortgage costs if you remortgage or borrow more (fees vary)
• tax considerations (for example SDLT in England/NI, depending on your setup and what you’re buying)

3) What changes after staircasing

What changes depends on how far you staircase:

• your rent on the unsold share usually reduces as your owned share increases
• your mortgage may increase if you borrow to fund staircasing
• service charges can still apply (they relate to the building/services)
• if you reach 100%, rent on the unsold share usually stops, but leasehold charges may remain

Worked examples

These examples are illustrative and show how costs can add up.

Example 1: Buying an extra 10% share (budgeting the “extras”)

• Home valuation: £280,000
• You buy an extra 10% share → share price: £28,000
• Transaction costs (illustrative):
  • Valuation: £400
  • Legal fees: £900
  • Admin fee: £250

Total cash you might need in addition to the share price:

£400 + £900 + £250 = £1,550 (plus any mortgage fees and SDLT considerations).

Final result: the “extras” can be meaningful even when the share price itself is the main cost.

Example 2: Funding staircasing with a remortgage

• Extra share price: £20,000
• You remortgage or borrow more to fund it

In this scenario, the share price is paid from the additional borrowing, but you still need cash for:

• valuation/legal/admin fees
• any product fees that apply

Final result: staircasing can increase your mortgage payment even as rent reduces — you need to model both.

Example 3: Staircasing to 100%

• You buy the final shares to reach 100%

What changes:

• rent on the unsold share usually becomes £0

What may not change:

• service charges can still apply
• lease obligations and permissions can still apply for leasehold

Final result: staircasing to 100% can reduce one part of the monthly cost (rent), but it doesn’t necessarily remove service charges.

Common mistakes

• Budgeting only for the share price and forgetting valuation/legal/admin fees.
• Assuming the share price is based on your original purchase price (it’s usually based on a current valuation).
• Forgetting that service charges can continue even at 100%.
• Not stress testing the combined monthly cost (mortgage + rent + service charge).
• Assuming every provider uses the same fees and timelines (they vary).
• Adding SDLT statements without checking the exact GOV.UK rules for the scenario.

What to do next

• Model your monthly cost mix: /shared-ownership/
• If you’re budgeting for the wider purchase journey: /guides/shared-ownership-monthly-costs-explained/
• If you’re checking affordability criteria: /guides/shared-ownership-affordability-what-gets-checked/
• Glossary: /glossary/staircasing/ and /glossary/service-charge/