Shared Ownership costs

Deposit and ongoing costs

Here’s an example of how the costs work:

Let’s say you buy a 25% share of a flat valued at £390,000. Your share would cost £97,500, so you’d need:

• a 5% deposit on your share of £97,500 – which is £4,875
• a mortgage for the remaining amount of £92,625 – around £484 per month (depending on your mortgage terms)
  

Once you’re in your new home, you’d also pay:

• monthly rent on the remaining 75% share  – approx. £670
• a monthly service charge for the facilities and communal areas – approx. £277
• the usual costs of running a home such as council tax, water, electricity, gas, insurance etc.

Upfront costs

Before you move in, you’ll need enough savings to cover your deposit as well as at least £3,000 for some additional one-off upfront costs, including: 

Reservation fee – Our reservation fee is £500. You’ll have a 14-day cooling off period, during which you can withdraw at any time. If you’re unable to secure a mortgage, your reservation fee will be fully refunded.

Mortgage Advisor fees – A mortgage advisor can help you find the right mortgage and usually costs between £450–£500. This is optional, but can save you money and time. 

Solicitor’s fees and disbursements – The cost of solicitor’s fees for purchasing your home is usually between £1,800–£2000 and including disbursements. Here’s some example costs:

Stamp Duty – This may not apply, but your solicitor can explain your options and how any costs would be calculated, so you can make the choice that’s right for you.