New shared ownership model – staircasing
What is staircasing?
Staircasing is the term used for buying more shares in your home, after you buy your initial share. The more shares you buy, the more of your home you own, and the less rent you pay to us, as our share gets smaller. This also means that you get a bigger share of any equity if you decide to sell your home.
All shared owners can staircase in the traditional way 
, but if your home has a new shared ownership model lease you can do this in smaller increments of 5%.
1% staircasing
In addition to traditional staircasing, shared owners with a new shared ownership model lease are also eligible for a 1% annual staircasing transaction without any legal, valuation or admin fees.
You have the option to buy a 1% share each year for the first 15 years of living in your home.
Once a year we’ll send you the valuation of an additional 1% share based on the UK House Price Index.
This is called an Additional Percentage Value Notice (APVN) and is valid for three months.
If the timing isn't right for you to buy an additional 1%, you can contact us for an updated 1% valuation at any point later in the year.
You can accept this valuation or instruct your own RICS valuation – which you would need to pay for.
If you do want to purchase an additional 1% for that year, then you must tell us - the easiest way to do this is to log onto MySovereign and complete the 1% staircasing form.
If you cannot use MySovereign, please contact our Resales and Staircasing team either by emailing staircasing@sovereign.org.uk or call 0300 330 0718 and an advisor will be able to help.
- Once you have submitted a request for a 1% staircasing transaction our staircasing team will check:
- if the APVN is still valid – if not, a new APVN will need to be provided
- whether there are any restrictions in the lease that would prevent you from being eligible for the 1% staircasing – if there are the advisor will discuss these with you and what options are available to you.
- if the 15-year eligibility period is still active – if not, the advisor would have to refuse the purchase.
- if you are happy with the valuation provided – if not, the advisor will inform you that you're able to instruct an independent valuation of your home which you would need to pay for. The valuation must be done by an independent surveyor qualified through the Royal Institute of Chartered Surveyors (RICS) or Fellow of Royal Institute of Chartered Surveyor (FRICS). The valuation would then be used to update the current and future APVNs.
- if you are in arrears, to complete the purchase, you will be asked to clear these before we can proceed.
- If you have an updated RICS valuation the advisor will need to review the valuation and update our systems with the updated valuation.
- If you are happy with all the information provided by the advisor, then we will issue the Authority to Proceed
- A Memorandum of Staircasing (MOS) will be sent to you along with a request for payment and confirmation of your new rent amount
- Once the payment has been received the MOS will be dated and confirmation sent to you that the purchase has been completed, the share you now own and reduced rent payment.
- Finally, the Advisor will update the Land Registry of the share you now own.
- Please note that Stamp Duty will be payable if your staircasing transaction take the shares you own to 80% or more.
If you have lived in your home for over 15 years or if you have staircased to 100% ownership, you are no longer eligible for 1% Staircasing and will not receive an APVN.
The APVN is based on the following criteria:
- Either the initial market value of the property or a more recent RICS valuation
- The UK House Price Index (HPI) produced by the Government
The calculation of the 1% valuation is based on criteria set out by Homes England and will be explained in a supporting letter.
Requesting an APVN is free and does not commit you in any way to purchasing a 1% share.
Purchasing an additional 1% share in entirely optional and there is no obligation for you to do so in any of the 15 years.
It is important to note that if you do not exercise this option in any year, it does not roll over into subsequent years or carry forward to the end of the 15 year period.