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Shared ownership costs

It’s important to understand the costs when you buy a shared ownership home, both one-off upfront costs and your monthly costs.

Here's a short video explaining the costs of buying your home:

Monthly costs

Each month you must pay the following:

  • Your mortgage on the share of the property that you own.
  • SO Resi Monthly Payment ('rent') for the share of your home that you don’t own.
  • Service charge to look after the communal areas of the building or development you live in.
  • Usual costs of owning a home including household bills and the costs of repairs inside your home.

Here's a short video to explain our service charges:

Example monthly costs

If you buy a 25% share of a £300,000 home, your share would be worth £75,000.

If you paid a 10% deposit of £7,500, your mortgage would be for the remaining £67,500.

Monthly costs would be:

  • Mortgage payment, based on a 3% interest rate over 25 years: £320
  • SO Resi Monthly Payment based on a 2.75% annual charge: £516
  • Service charge estimate: £120

Total monthly costs: £956, plus normal household costs.

Upfront costs

Before you buy a SO Resi home, there are some upfront costs. You can’t borrow money for these as part of your mortgage, so you will need to have saved enough to cover your deposit plus at least £3,000 for these other costs:

  • Solicitors fees and disbursements. Solicitors fees are typically around £1000. Disbursements are payments or taxes paid to third parties by the solicitor on your behalf, for example local searches and land registry fees. Your solicitor will give you a quote upfront for these.
  • Independent financial advisor fees. An IFA can help you find the right mortgage for you. Their advice costs between £400 - £600 but could save you money in the long run.
  • Stamp duty. This may not apply, but your solicitor can tell you more.
  • Reservation fee. If you are buying a SO Resi new build home you will need to pay a reservation fee of £250, we will then refund it when you move in.

Affordability

As part of the application process, we need to be sure that you can afford the cost of living in your shared ownership home. To do that, you will need to meet an Independent Financial Advisor (IFA) who will look at your financial situation, help you decide what you can afford and confirm that you meet our affordability criteria. Even if you have a mortgage approved, we won't be able to sell you a home if you don't meet this criteria.

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