Same money, two different jobs at two different stages of the home buying process. 

What’s the difference between a mortgage deposit and an exchange deposit? 

One of the most common points of confusion when buying a house for the first time is hearing your solicitor ask for “the deposit” when you thought your deposit was already sorted with your mortgage lender. Here’s the distinction: 

Do I need to find two deposits? 

No, and this trips up almost every first-time buyer.  The exchange deposit comes out of your mortgage deposit, it’s simply paid earlier.  

Take a worked example. If you’re buying a £200,000 home with a £20,000 (10%) deposit: 

1. Your £20,000 goes to your solicitor before exchange 
2. That £20,000 is passed to the seller’s side at exchange of contracts 
3. On completion, your lender sends the remaining £180,000 

You never need £40,000. It’s one deposit doing two jobs. 

Can I exchange contracts with a 5% deposit? 

Yes. Don’t panic, and don’t try to find the extra 5%. 

If you’re buying with a 95% mortgage, your solicitor simply asks the seller’s solicitor to accept a 5% exchange deposit instead of the usual 10%. Sellers agree to this in the vast majority of sales, especially with first-time buyers. 

Just tell your solicitor early that you have a 5% deposit, so it can be agreed before exchange day rather than becoming a last-minute hold-up. 

When do I pay my house deposit? 

Your solicitor will ask for your deposit funds, cleared, in their client account, a few days before the planned exchange date.  

This is also why the anti-money laundering checks on your ID and source of funds happen early: your solicitor can’t accept your deposit until those checks are done. Get your documents in promptly and the money side runs smoothly. 

The typical sequence looks like this: 

1. Transfer your deposit to your solicitor’s client account (verify their bank details by phone first as payment fraud targets exactly this moment) 
2. Contracts are exchanged and the deposit passes to the seller’s solicitor 
3. The purchase is now legally binding, with a fixed completion date 
4. On completion day, your lender releases the mortgage funds and the property is yours 

What happens to my deposit if the sale falls through? 

Timing is everything: 

• Before exchange: either side can walk away, and your deposit money simply stays in your solicitor’s client account so you get it back. 
• After exchange, if you fail to complete: the deposit is the seller’s security. They can keep it and may claim further losses. 
• After exchange, if the seller fails to complete: you’re entitled to your deposit back with interest, plus potential compensation. 

That’s the whole purpose of the exchange deposit, it’s what turns a handshake into a binding contract. 

FAQ 

Key takeaways for first-time buyers 

The “two deposits” are really one: the exchange deposit is just part of your mortgage deposit doing its job a little earlier. Once you know that, the process is far less daunting. 

Ready to get moving? If you’re buying your first home and want a conveyancing team that explains every step in plain English, get in touch for a quote or fill self form to get a free quote we’ll tell you exactly when your deposit is needed and what to have ready. 

The post Mortgage Deposit vs Exchange Deposit: What First-Time Buyers Need to Know  appeared first on PLS Solicitors.

“Can’t recommend PLS enough! Buying a house is a stressful process, but our case handler Sarah Evans was brilliant, super responsive and always easy to get hold of. She consistently chased up the sellers solicitors when needed, and proactively called us to provide updates. It really felt like she was invested in our house purchase and ensured that we completed as soon as possible, due to a tight turnaround needed to complete. Thanks so much again!”

-Becky

Always Easy to Get Hold Of

In a property transaction, being able to reach your case handler when you need them is not a luxury, it is essential. Sarah was consistently responsive and easy to get hold of throughout, meaning the client never had to wonder where things stood or wait around for answers that should have already been on their way.

Proactive When It Mattered Most

Rather than waiting for updates to be requested, Sarah took the initiative to call her clients regularly and keep them fully informed at every stage. That kind of proactive approach removes uncertainty from the process and gives clients the confidence that everything is being managed with real care and attention.

Chasing the Right People at the Right Time

Progress in a property transaction does not always happen on its own, and Sarah knew exactly when to step in and keep things moving. Sarah consistently chased the sellers solicitors whenever needed, ensuring that nothing stalled unnecessarily and that the process kept progressing towards completion as efficiently as possible.

Completing Against a Tight Turnaround

With a tight deadline to work towards, there was no room for delay. Sarah rose to the challenge, managing every aspect of the transaction with focus and determination to ensure her clients completed as quickly as possible. That kind of commitment under pressure is what sets a truly exceptional case handler apart.

Congratulations on Your New Home!

A huge congratulations on completing your purchase, and a brilliant well done to Sarah for delivering such an outstanding result under real time pressure.

Thinking about your next move?

Get in touch with our team today and find out how we can help make the process as smooth and stress-free as possible.

The post 5 Star Friday: “It Really Felt Like She Was Invested in Our House Purchase” appeared first on PLS Solicitors.

The good news? The Conveyancing solicitor for first time buyers who responding quickly with clear, complete documents is the single easiest way to keep your house purchase on track. Here’s exactly what your solicitor will ask for, why, and how to get ahead of it. 

Why Solicitors ask for ID and bank statements when buying a house? 

Under the UK Money Laundering Regulations, solicitors must complete client due diligence before acting on any property purchase. Property is a common target for criminals trying to “clean” illegal money, so the law treats conveyancing as high-risk. 

That means your conveyancing solicitor must verify three things: 

• Your identity: usually a passport or photocard driving licence 
• Your address: a recent utility bill, council tax bill or bank statement (separate from your ID document) 
• Your source of funds: where your deposit money actually came from 

Solicitors have no discretion here. If the checks can’t be completed, they can’t act for you and every regulated firm applies the same rules. Many firms now use secure electronic ID checks via an app; this is completely normal and often quicker than posting documents. 

What does “source of funds” mean? 

Source of funds means evidence of where your money came from, not just proof that you have it. A bank balance shows you have £30,000 but it doesn’t show how you got it. 

What you’ll need depends on where your deposit originated: 

Gifted deposits 

Gifted deposits get extra scrutiny. Because the money originates with your family member, the AML checks extend to them too so they’ll need to provide ID, bank statements, and a signed gifted deposit letter. Tell them early so they’re not caught off guard mid-transaction. 

If any part of your deposit is cash saved at home, tell your solicitor at the very start. Money with no bank trail is genuinely difficult to evidence. 

Why do solicitors need 3–6 months of bank statements? 

A single statement is a snapshot whereas several months show the pattern: salary arriving, savings building, and any large credits that need explaining. If there’s a one-off payment (a bonus, a tax refund, selling your motorbike), expect a question about it. Your solicitor must be able to explain every significant credit if their regulator audits the file. A short explanation with a supporting document usually settles it in minutes. 

Tip: send official PDF statements from your online banking, not screenshots. Screenshots are routinely rejected and just add delay. 

Will AML checks delay my house purchase? 

Only if the paperwork drags. Electronic ID checks often complete the same day, and straightforward source of funds evidence is usually reviewed within days. 

Delays almost always come from three things: 

1. Documents sent incrementally rather than together 
2. Screenshots instead of official PDF statements 
3. A gifted deposit disclosed late in the transaction 

Treat the AML request as the first job of your purchase, and you’ll barely notice it. It’s one of the stages where being organised keeps the process moving; the same is true when the buyer’s solicitor raises enquiries to make the process smooth.

Can I opt out of solicitor ID and money laundering checks? 

No, and neither can any other buyer.  

Every regulated firm must run client due diligence checks. A solicitor who skips them is a red flag, not a shortcut. 

Watch out for payment diversion fraud 

Criminals know buyers expect document requests during conveyancing, and payment diversion fraud is real. Two rules protect you: 

1. Always verify bank details by phone before transferring money, using the number on the firm’s website, not the one in the email. 

2. Be suspicious of any mid-transaction email saying “our bank details have changed.” They almost never do. 

Sending documents to your verified solicitor is safe. Sending money to unverified account details is where buyers get hurt. 

FAQ  

Get ahead of it: your AML document checklist 

Before your solicitor even asks, gather: 

• Photo ID (passport or photocard driving license) 
• Proof of address dated within the last three months 
• 3–6 months of PDF bank statements 
• Recent payslips 
• Savings or ISA statements 
• If receiving a gift: the gifted deposit letter plus your giftor’s ID and bank statements 

Ready to get moving?  

If you’re buying your first home and want a conveyancing team that makes the process clear from the outset, Get your free conveyancing quote! and relax from legal work for first house purchase and get your moving hassle free.

The post Why Solicitor ask for ID, Source of funds, and Bank Statements from a first-time buyer? appeared first on PLS Solicitors.

“I would like to thank Rosie for the exceptional service and support she has provided throughout my house purchase as a first time buyer. Rosie has been absolutely fantastic. She has been professional, approachable, and incredibly supportive at every stage of the process. Nothing was ever too much trouble, and she always took the time to answer questions promptly and thoroughly, giving me confidence and reassurance throughout what can often be a stressful experience. Her communication has been outstanding, keeping me informed every step of the way and ensuring everything progressed as smoothly as possible. I truly feel that without Rosie’s dedication, expertise, and support, the whole process would not have been possible. Rosie is a real credit to the team, and I can’t thank her enough. Thank you Rosie, for helping us reach this exciting milestone. Your support has meant more to us than words can express.”

-Afsa

Confidence and Reassurance at Every Stage

Buying your first home is one of the biggest steps you will ever take, and it is completely natural to have questions at every turn. What made the difference here was having someone who never made those questions feel unwelcome. Every query was answered promptly and thoroughly, and the client always felt reassured and confident about where things stood throughout the entire process.

Communication That Never Left Them Wondering

From start to finish, the client was kept fully informed at every stage. No chasing, no uncertainty, just consistent and proactive communication that ensured everything progressed as smoothly as possible. That level of attentiveness is what turns a potentially stressful experience into a manageable and even positive one.

Nothing Ever Too Much Trouble

Buying a first home comes with a lot of unknowns, and having a case handler who is genuinely approachable and willing to go the extra mile makes all the difference. Throughout this transaction, nothing was ever too much trouble, and that attitude of care and dedication shone through at every stage.

Congratulations on Your First Home!

A huge congratulations on reaching such an exciting milestone, and a brilliant well done to Rosie for delivering such an exceptional experience from start to finish.

Are you a first time buyer looking for a team you can trust?

We would love to help you take that first step. Get in touch today.

The post 5 Star Friday: “Without Rosie’s Support, the Whole Process Would Not Have Been Possible” appeared first on PLS Solicitors.

Whether you’re just starting to browse or you’re mid-way through your first purchase, this glossary is your go-to guide. Keep it handy, share it with anyone buying with you, and come back to it whenever the jargon gets confusing.

Making an offer: the early stages of buying your first home

What is an Agreement in Principle (AIP)?

An Agreement in Principle (AIP) is a statement from a mortgage lender saying they would likely lend you a certain amount, based on basic checks. It’s sometimes called a Decision in Principle (DIP) or Mortgage in Principle. An AIP is useful for showing estate agents you’re a serious buyer but it is not a mortgage offer, and it isn’t guaranteed.

What does Sold STC or “under offer” mean?

Sold STC (Subject to Contract) and “under offer” both mean the seller has accepted an offer, but contracts haven’t yet been exchanged. Nothing is legally binding at this stage for either side. Estate agents vary in exactly how they use the two terms.

What is a memorandum of sale?

A memorandum of sale is the document the estate agent circulates once an offer is accepted, confirming the agreed price and the details of everyone involved, including both sets of solicitors. It starts the legal process but it doesn’t commit anyone to anything yet.

What is gazumping?

Gazumping is when a seller accepts your offer, then accepts a higher offer from someone else before contracts are exchanged. It’s frustrating but legal in England and Wales. Gazumping is one of several reasons why moving efficiently towards exchange protects you as a buyer.

What is a property chain?

A property chain is the line of linked transactions your purchase may sit in: you’re buying from someone who is buying from someone else, and so on. Every link must be ready before anyone can move. Chain-free means there’s no onward chain on the seller’s side, often faster, which is why listings advertise it. First-time buyers are chain-free themselves, which makes them attractive buyers.

The legal process: what your conveyancing solicitor is doing

What is conveyancing?

Conveyancing is the legal work of transferring a property from one owner to another: checking the title, running searches, handling contracts and moving the money safely. The person doing it for you is your conveyancer or conveyancing solicitor.

What are property searches?

Property searches are checks your solicitor runs with the local authority and other bodies before you exchange contracts. The three main types are:

• Local authority search: reveals planning history and land charges affecting the property
• Environmental search: flags flood risk and ground contamination
• Drainage and water search: confirms how the property connects to public sewers and water supply.

Searches exist to make sure there are no nasty surprises attached to the property. They’re also one of the most common things a purchase waits on so when your solicitor says “we’re waiting on searches,” this is what’s happening.

What are disbursements in conveyancing?

Disbursements are costs your solicitor pays out on your behalf as part of the transaction, such as search fees and Land Registry fees. They appear on your conveyancing quote separately from the legal fee itself.

What does “source of funds” mean?

Source of funds refers to the checks your solicitor is legally required to run on where your deposit money came from such as bank statements, savings history, and evidence for any gifts or lump sums. It can feel intrusive, but it’s an anti-money-laundering requirement that applies to every buyer at every firm. Responding quickly to source of funds requests is one of the biggest things a first-time buyer can do to keep their purchase on track.

What is a gifted deposit?

A gifted deposit is money towards your deposit given (not lent) by family. It’s completely normal, but it comes with paperwork: the giver signs a letter confirming it’s a genuine gift, and they’ll be asked for ID and proof of where the money came from too. Tell your solicitor about any gifted deposit on day one; late-declared gifts are a classic cause of delays.

What is title in property law?

Title is the legal record of who owns a property and any rights or restrictions attached to it. Checking the title is a core part of your solicitor’s job, it’s how we make sure the seller actually owns what they’re selling, and that nothing attached to the property will cause you problems later.

Freehold, leasehold and what you’re actually buying

What is the difference between freehold and leasehold?

Freehold means you own the property and the land it stands on outright and indefinitely. Leasehold means you own the property for a fixed period under a lease, while a freeholder owns the building or land, most flats in England and Wales are leasehold.

If you’re buying a flat as a first-time buyer, you’re almost certainly buying leasehold. Your solicitor will review the lease and explain exactly what it commits you to before you sign anything.

What is a service charge?

A service charge is a regular payment (usually monthly or annual) on leasehold properties, covering the upkeep of communal areas, buildings insurance and shared facilities. Service charges vary considerably between properties, so ask for the most recent confirmed figure before committing as it directly affects your monthly outgoings.

What is the TA10 fixtures and fittings form?

The TA10 is a form the seller completes listing exactly what’s included in the sale: curtains, light fittings, the shed, sometimes the white goods. Read it carefully before exchange. “But we thought the wardrobes were staying” is a conversation nobody enjoys on moving day.

Is the lender’s valuation the same as a survey?

No. This catches many first-time buyers out. A survey is an inspection of the property’s condition that you arrange for your own peace of mind, ranging from a basic condition report to a full structural survey. The lender’s valuation only checks that the property is worth what they’re lending against it. A valuation is not a survey, and it won’t spot the damp.

Exchange and completion: the two biggest days of your purchase

What happens at exchange of contracts?

Exchange of contracts is the point at which a property sale becomes legally binding. Signed contracts are formally exchanged between solicitors, your deposit is paid, and a completion date is fixed in the contract. Neither party can pull out after exchange without significant financial penalty.

What happens on completion day?

Completion day is when the remaining money is transferred, ownership legally passes to you, and you collect your keys. Keys usually come early afternoon rather than first thing as the funds have to travel between solicitors’ accounts before they can be released.

What is Stamp Duty Land Tax (SDLT)?

Stamp Duty Land Tax (SDLT) is the tax paid on property purchases in England and Northern Ireland. First-time buyers may qualify for first-time buyer relief, which reduces or removes the SDLT payable depending on the purchase price and the thresholds in force at the time. Your solicitor calculates it, collects it and pays it to HMRC for you at completion.

What is the Land Registry?

HM Land Registry is the government body that records who owns property in England and Wales. After completion, your solicitor registers you as the new owner. This happens behind the scenes in the weeks after you move in  so if things go quiet after completion, that’s normal, not forgotten.

Frequently Asked Questions

First-Time Buyer

If any of these terms have raised questions about your own purchase, our team at PLS is here to help. We guide first-time buyers through this journey every day, in plain English at every stage; it’s how PLS won Best Law Firm for Conveyancing at the First Time Buyer Readers Awards.

Get a quote today or contact us for a no-obligation conversation about your next steps.

The post First-Time Buyer Jargon Explained 2026 appeared first on PLS Solicitors.

“PLS have been absolutely fantastic throughout the purchase of our first home. As first time buyers, there were lots of things we didn’t understand, but the team were incredibly helpful, patient, and took the time to explain everything clearly, making the whole process much less stressful. A special thank you to Amy Tinham, who has been amazing from start to finish. She has been so supportive, professional, and always happy to answer any questions we had. We truly couldn’t have asked for better service. Thank you so much to everyone at PLS. We would highly recommend them to anyone, especially first time buyers!”

-Sophie

First Time Buyers, Fully Supported

There is a lot to take in when you are buying your first home. Unfamiliar terminology, a process that can feel overwhelming, and plenty of questions that you might not even know how to ask. The team at PLS made sure nothing was left unclear, taking the time to explain every stage patiently and thoroughly until the client felt confident and informed throughout.

Patience That Made All the Difference

Being helpful is one thing, but being genuinely patient with every question, however big or small, is what truly sets a team apart. Throughout this transaction, the team never made the client feel like anything was too much trouble, and that approachability made the whole experience far less daunting than it might otherwise have been.

Clear Communication Throughout

Every step explained, every question answered, and a process that never left the client feeling uncertain about where things stood. Clear and consistent communication is at the heart of everything PLS does, and this review is a brilliant reminder of the difference it makes, particularly for those going through the process for the very first time.

Congratulations on Your First Home!

A huge congratulations on such an exciting milestone, and a brilliant well done to Amy and the entire team for making the whole experience such a positive one.

Are you a first time buyer looking for a team you can trust? We would love to help you take that first step. Get in touch today.

The post 5 Star Friday: “We Couldn’t Have Asked for Better Service” appeared first on PLS Solicitors.

Buying a property is equal parts exciting and overwhelming, and shared ownership comes with its own set of terms you won’t hear anywhere else. Whether you’re just starting your property research or you’re mid-way through a purchase, this glossary is your go-to guide.

Basics of shared ownership

A government-backed scheme that lets you buy a share of a home, anywhere between 10% and 75% of its full market value, and pay a subsidised rent to a housing association on the share you don’t yet own.

Who is eligible for shared ownership?

To qualify for shared ownership, you must:

• Be at least 18 years old
• Have a household income of no more than £80,000 per year (£90,000 in London)
• Not currently own another property.

What is a housing association?

The not-for-profit organisation that owns the share of the property you haven’t purchased yet. They’re your landlord for the portion you rent, and they’re involved at several key stages of your conveyancing: issuing your lease, approving your application, and managing the nomination period if you later sell.

What is the difference between a leasehold and freehold in shared ownership?

All shared ownership properties are sold on a leasehold basis. Checking the lease length before buying is important, as shorter leases can affect your ability to get a mortgage and reduce the property’s resale value.

Buying your share: deposits, shares and affordability

What is an initial share?

The percentage of the property you purchase at the outset, anywhere between 10% and 75%. Most buyers start between 25% and 50%, depending on their finances and the housing association’s requirements. Your deposit is calculated as a percentage of your share value, not the full property price.

How much deposit is needed for shared ownership?

Typically 5% to 10% of the value of your share, not the full property price. For example:

What is an affordability assessment?

Before approving your application, the housing association will usually require you to complete an affordability assessment. This is a check carried out by a nominated adviser to confirm that your total monthly costs (mortgage, rent and service charge combined) are manageable based on your income and outgoings.

What is the nomination period?

When a shared ownership property is sold by the housing association or by an existing owner, the housing association typically has a fixed period (often 8 weeks) during which they have first right to find a buyer themselves before the property is marketed more widely. Understanding this helps set realistic expectations on timing, both when buying and when selling.

The legal process in shared ownership

The legal process of transferring ownership of a property. Shared ownership conveyancing involves an extra layer of complexity because your solicitor works with both you and the housing association throughout: reviewing the lease, obtaining approvals, and managing their legal team.

What searches are carried out when buying a shared ownership home?

Your solicitor carries out searches shortly after instruction. The three main types are:

• Local authority search: reveals planning history and land charges
• Environmental search: flags flood risk and ground contamination
• Drainage search: confirms how the property connects to public sewers and water search and more

Your solicitor will advise which are necessary for your specific property.

What is a report on title?

A document your solicitor produces once they’ve reviewed the lease and all relevant legal paperwork. It summarises the key terms: your rent, service charge obligations, staircasing rights, and any restrictions on the property. This is presented in plain English, so you fully understand what you’re buying before you sign anything.

What happens at exchange of contracts?

The point at which the sale becomes legally binding. Both buyer and housing association (or seller) sign contracts, which are then formally exchanged between solicitors. Your deposit is paid at this stage. Neither party can pull out after exchange without significant financial penalty.

What happens on completion day?

The day the remaining funds are transferred and you receive your keys. For new build shared ownership, completion is often tied to the construction schedule. For resales, it typically follows exchange by one to four weeks. After completion, your solicitor registers your ownership at the Land Registry (your deeds / title register).

Owning your home and building equity

What is a service charge?

A regular payment (usually monthly or annual) to the housing association or management company covering the upkeep of communal areas, buildings insurance, and maintenance of shared facilities. Service charges vary considerably between properties so ask for the most recent confirmed figure before committing, as it directly affects your total monthly outgoings.

Do I pay ground rent on a shared ownership property?

On new leases, no. Following the Leasehold Reform (Ground Rent) Act 2022, ground rent on new leases is set at zero (known as a “peppercorn” rent). If you’re buying a resale on an older lease, check whether ground rent applies and on what terms, because some older leases included escalating clauses that can cause issues with mortgage lenders.

What is staircasing?

Staircasing is the process of buying additional shares in your property over time, increasing the percentage you own. Each time you staircase, a RICS valuer assesses the current market value and you buy the new share at that price. Know whether the cost of staircasing is worth it according to your needs.

What is final staircasing?

Purchasing the last share needed to reach 100% ownership. At this point, rent payments to the housing association stop entirely. For houses, you may also be able to buy the freehold at this stage.

What is a memorandum of staircasing?

A memorandum of staircasing is the legal document that records each staircasing transaction and is registered at the Land Registry. Your solicitor prepares this every time you purchase an additional share.

What is a RICS valuation and how much does it cost?

A RICS valuation is carried out by a surveyor registered with the Royal Institution of Chartered Surveyors, and is required before each staircasing transaction to establish current market value. It’s usually valid for three months and typically costs between £300 and £500, paid by you.

Selling your shared ownership home

What is a shared ownership resale?

A resale is a shared ownership property sold by its current owner rather than by a housing association as a new build. Buying a resale means taking on the existing lease and share percentage. For sellers, the process involves notifying the housing association, commissioning a RICS valuation, and working through the nomination period before the property can be marketed more widely.

Who is the vendor?

The vendor is the seller of the property: either the housing association (in a new build) or the existing shared owner (in a resale).

Frequently asked questions

If any of these terms have raised questions about your own situation, our shared ownership team at PLS is here to help. We handle shared ownership transactions every day and are well-versed in working with housing associations across the country.

Get a quote today or contact us for a no-obligation conversation about your next steps.

The post Shared Ownership Explained: Your 2026 Glossary appeared first on PLS Solicitors.

“Amazing solicitors, we have used them for 2 moves now but this time they really smashed it. 7 weeks from contacting them we was in our new home, so fast and smooth. Lauren Smith was our case handler, she was the most helpful, professional and understanding person we could have wished for. Nothing was too much for her, her communication was perfect, everything was handled within minutes it seemed. Can’t thank her enough for getting us in our new home so fast and bump free! What a lady! Thanks so much to everyone from PLS!”

-Layla

Seven Weeks From First Contact to Moving In

A completion achieved in seven weeks is a brilliant result by any measure. It takes exceptional coordination, a proactive approach, and a case handler who stays on top of every detail to make a turnaround like that possible. Lauren and the wider team delivered exactly that, and the result exceeded even the client’s own expectations.

Returning Clients Say It Best

There is no greater sign of confidence than a client who comes back. This client has now trusted PLS with two of their moves, and on this occasion felt the team went above and beyond what they had experienced before. That consistency, and the drive to keep raising the bar, is something the whole team takes real pride in.

Communication That Never Kept Them Waiting

Everything handled within minutes, consistent updates, and a case handler who was always available and on top of every detail. Lauren’s communication throughout was described as perfect, and it is easy to see why. That level of responsiveness removes uncertainty and keeps the whole process moving forward without unnecessary delays.

Congratulations on Your New Home!

A huge congratulations to our clients on their second move with PLS, and a brilliant well done to Lauren and the entire team for delivering such an outstanding result.

Thinking about your next move? Whether it is your first purchase or your fifth, we would love to help make the process as fast, smooth, and stress-free as possible.

Get in touch today.

The post 5 Star Friday: “7 Weeks From First Contact to Moving In” appeared first on PLS Solicitors.

But staircasing isn’t automatic, and it isn’t always the right move at every stage. Here’s everything you need to know about how it works, what it costs, and how to decide whether it’s the right step for you. 

What is staircasing? 

Staircasing is the process of purchasing additional shares in your shared ownership property, on top of the share you originally bought.

Many people fund this by increasing their mortgage, but that’s not the only option. You may be able to use savings, an inheritance or another source of funds to buy the additional share instead.

As you increase the share you own, the rent you pay to your housing association on the remaining share reduces proportionally. If you increase your mortgage to fund the purchase, your monthly mortgage payments will usually rise. If you fund the purchase without borrowing more, your mortgage can stay at the same level while your rent reduces.

For example, if you currently own 40% of your home and staircase to 60%, you’ll own a larger share of the property and pay rent on the remaining 40%. Depending on how you’ve funded the purchase, your mortgage payments may increase or remain the same, but your monthly rent bill will reduce.

How much can you staircase at a time? 

This depends on when your lease was granted. 

The introduction of 1% annual staircasing under the 2021 model was a significant change, designed to make it more accessible for shared owners to gradually build equity without needing to save for a large lump sum. If you’re unsure which type of lease you have, your solicitor or housing association can confirm this. 

How is the price calculated? 

This is the crucial detail that catches many shared owners off guard! You don’t buy additional shares at the price you originally paid. 

Each time you staircase, your housing association will commission a RICS (Royal Institution of Chartered Surveyors) registered valuer to assess the current market value of the property. Your new share is priced based on that current valuation. 

Let’s understand with an example: 

Let’s suppose you are planning to buy a 40% share of a property when it was valued at £250,000. Your initial share was worth £100,000. 

Three years later, you decide to staircase to 60%. The property is now valued at £300,000. 

• The additional 20% share is now calculated on £300,000, not the original £250,000 

• 20% of £300,000 = £60,000 (not the £50,000 it would have been at purchase) 

• But your 40% share has also grown in value from £100,000 to £120,000, so you’ve already benefited from that increase too 

This is why staircasing is most financially attractive in a rising market, where your existing equity has grown alongside the additional cost. 

What are the costs involved? 

Staircasing isn’t free; you’ll need to budget for the following: 

• RICS valuation — typically £300 to £500, commissioned before each transaction 

• Solicitor’s fees — your conveyancer will handle the legal side of the staircasing transaction 

• Stamp Duty Land Tax — may become payable depending on the value of your accumulated share (your solicitor will advise) 

• Mortgage arrangement fees — if you’re remortgaging to fund the purchase 

It’s worth speaking to a mortgage adviser before committing, as your existing lender may not offer the best rate for the increased share. 

What happens when you reach 100%? 

When you purchase the final share needed to reach full ownership, rent payments to your housing association stop entirely. For houses (not flats), you may also be able to purchase the freehold at this stage, becoming the outright owner of both the property and the land it sits on. 

Only around 2.6% of shared owners fully staircase to 100% each year, which shows that most people find a share level that works for them and stay there, rather than treating 100% as an automatic goal. 

So is it worth it? 

Staircasing makes the most sense when: 

• Property values in your area have risen significantly, and you want to lock in more equity before they rise further 

• Your income has grown, and you can comfortably afford the increased mortgage 

• Your rent payments are a significant monthly outgoing, and you want to reduce them 

• You’re planning to sell and want to maximise your return 

It’s worth reviewing every few years rather than leaving it entirely. Even a small staircase, particularly under the 1% annual option, can make a meaningful difference to your financial position over time. 

If you’re buying, selling or remortgaging a shared ownership property and have questions about staircasing, our shared ownership solicitors team at PLS can help you understand your legal options. Get in touch to find out more.

Get a quote today or speak to our team to find out more. 

The post What is Staircasing in Shared Ownership? Is It Worth It?  appeared first on PLS Solicitors.

Shared ownership remains one of the most popular ways for first-time buyers to get onto the property ladder, yet it’s still widely misunderstood. 

More than 250,000 households now live in shared ownership homes across England, and the scheme has evolved significantly in recent years. If you’re considering buying a shared ownership property, here are seven common myths and the reality behind them. 

Myth 1: You have to buy at least 25% of the property 

Not anymore! 

This was true under the older shared ownership model, but the scheme was updated in 2021. Under the current model, you can purchase a share of as little as 10% of a property’s full market value, making it accessible to buyers in higher-priced areas where even a 25% share was out of reach. 

The maximum initial share remains 75%. Most buyers purchase somewhere between 25% and 50%, but the 10% entry point means the scheme now works for a wider range of buyers and locations.

Myth 2: Shared ownership is more expensive than renting 

The numbers say otherwise 

Shared owners pay a mortgage on the share they own and subsidised rent on the remaining share. According to Connells Group’s Q1 2026 data, the average combined monthly cost of the mortgage and subsidised rent for a 40% shared ownership home is around £747 per month. 

In many parts of the country, that’s significantly lower than private renting. Unlike renting, shared ownership also allows you to build equity in your home over time. 

Myth 3: You can’t make changes to the property 

You can, within reason. 

Shared owners can decorate and make internal improvements much like any other homeowner. For larger structural alterations, such as loft conversions or extensions, you’ll usually need permission from the housing association as well as any necessary planning approvals. 

This is similar to the restrictions that apply to many leasehold properties. 

Myth 4: “It’s difficult to sell a shared ownership home” 

Shared ownership homes have a well-established resale process. 

The process is more straightforward than many people think. 

Most housing associations have a nomination period, typically around eight weeks, during which they can try to find an eligible buyer. If they don’t, the property can usually be marketed more widely. 

As shared ownership has become more common, the resale market has grown significantly, making it easier for owners to sell when the time comes. 

Myth 5: You Must Eventually Own 100% of the Property 

There’s no requirement to staircase at all. 

Staircasing (buying additional shares in your property over time) is entirely optional. Many shared owners remain at their original share level for years because it suits their finances and housing needs. 

In fact, only around 2.6% of shared owners fully staircase to 100% ownership each year.  

You can increase your share when it makes sense for you, but there’s no requirement to staircase to full ownership. 

Myth 6: “Shared ownership is only for new builds” 

Resales are an increasingly popular option. 

While shared ownership is often associated with new-build developments, resale properties are becoming increasingly popular. A shared ownership resale allows you to purchase an existing owner’s share and continue staircasing if you choose. 

Resales can offer excellent value and provide access to established neighbourhoods where new-build homes may be limited. 

Myth 7: Shared Ownership Conveyancing Is Too Complicated 

It doesn’t have to be. 

Shared ownership purchases involve additional legal requirements because housing associations are involved in the transaction. However, an experienced conveyancing solicitor will guide you through the process, explain the lease and liaise with the housing association on your behalf. 

With the right legal support, buying a shared ownership home is no more daunting than any other property purchase. As with any property transaction, understanding the key stages of shared ownership in advance can help avoid delays. 

Is Shared Ownership Worth It in 2026? 

For many first-time buyers, shared ownership offers an affordable route into homeownership that might otherwise be out of reach. 

The scheme is now more flexible than ever, with lower entry requirements, a growing resale market, and no obligation to staircase. Understanding how shared ownership really works can help you decide whether it’s the right option for your circumstances. 

The post Shared Ownership Myths Debunked: The Truth for First-Time Buyers  appeared first on PLS Solicitors.