Memorandum of Staircasing from Your Housing Association

The Memorandum of Staircasing is the definitive legal document that marks the successful increase of your equity in a shared ownership property. While the staircasing valuation sets the price and the mortgage offer provides the funds; this document is the formal evidence required to bridge the gap between paying for your shares and legally owning them.

Once executed by your Housing Association, the Memorandum acts as a supplemental deed to your original lease, providing the essential paper trail your solicitor needs to update the Land Registry. Without this critical document being correctly finalised and registered, your increased stake remains off the record, which can lead to significant complications, such as overpaying rent or facing delays when you eventually decide to sell or remortgage your home.

What is the memorandum of staircasing form?

A Memorandum of Staircasing is a document issued by your housing association that confirms the amount you need to pay to buy more shares in your property. It is dated because it's based on the current market value of your property and must be signed and returned to them.

The memo is more important than the valuation because it acts as a receipt for the purchase of the additional shares. The memo will be issued in draft to your solicitor, it is then amended where appropriate, and prior to completion, the document is sealed by the housing association. This final sealed document is then sent to the Land Registry.

How to get a memorandum of staircasing

• 1

  Check your eligibility

  You should check how many shares you can buy, as this can vary depending on your lease type. For new-build Shared Ownership under the 2016-2021 programme, the minimum is 10%. The "1% per year" rule applies to newer leases to encourage gradual staircasing without needing a formal valuation or expensive legal fees.

• 2

  Get a Staircasing Valuation

  To avoid the risk of applying for a mortgage only to find you can't afford the staircase, you should get a valuation. Some leases allow you to staircase without a RICS valuation.

• 3

  Apply to the Housing Association

  Housing associations have different procedures for the staircasing process, but you'll normally start by applying directly to them. This is usually done by sending a form back to them and paying any required fee.

• 4

  The Housing Association issues the draft memorandum of staircasing

  The draft memo is issued to your solicitor for their review, and then the final stages of the staircasing process are completed.

What should you be doing?

Once the Memorandum of Staircasing has been issued, your focus turns to getting a new mortgage product to support the purchase of the additional shares. You can apply through your existing lender, or go directly or through a broker, to a new lender.

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Do you have to register a memorandum of staircasing with the Land Registry?

The Certified Copy of the Memorandum of Staircasing is sent by your solicitor to the Land Registry along with the AP1 Form, certificate of compliance, mortgage deed, SDLT5 (stamp duty receipt) and any other legal documents. The memo is stored at the Land Registry and sits alongside the lease.

You can request a "copy of a registered deed" using Form OC2. Note that this is different from a standard Title Register (Official Copies); you are specifically asking for the "Staircasing Memorandum" referred to in the register.

Does the memo replace the lease?

No, the memorandum of staircasing sits alongside the lease. When you come to sell or remortgage, both the lease and certified memo will be needed, so you should keep a copy of the document safe.

What if you lose your certified memo?

If you have lost your copy of the certified memo, you can get a copy from either the solicitor who handled the staircasing for you (they hold your file for up to 6 years after you complete), or the Housing Association.

How can you stop getting overcharged on your rent?

You should not wait for the Land Registry to update the title before sending a letter to the Housing Association to confirm the completion of the staircasing. The Memorandum of Staircasing is signed on the day of completion and is sufficient proof for the Housing Association to adjust your internal account.

In some scenarios, the Housing Association won't automatically reduce your rent until the Land Registry is updated. This is why you should send a letter to the housing association once you have completed it, to avoid being overcharged for your rent.