When you buy a shared ownership home you will have to put a deposit down for the share you are buying. The deposit for a shared ownership property will usually be between 5-10% of the share.
If you are buying a 25% share of a home worth £200,000 your share would be £50,000. If a 5% deposit was required you'd need to put down £2,500.
You will need a conveyancer to carry out the legal process of purchasing your shared ownership home.
Fees for solicitors can vary, so it is important to get quotes and make sure whomever you use is trained in dealing with shared ownership properties.
Most mortgage brokers will charge a fee for their service. This is usually either a fixed amount or a percentage of the purchase price.
Make sure you discuss fees with a mortgage broker before they undertake any work. Also make sure you are aware of when these fees are payable.
Moving costs can vary vastly, depending on what and where you're moving.
Most housing associations would recommend having between £3000-£5000 to cover all costs such as moving fees, conveyancers, and brokers' fees.
The rent you pay will be determined by the share you own as well as the housing associations own policy. It will usually be around 3% of the unsold equity but this varies.
You should receive your exact figures when you view a property.
Example: If you buy a 25% share of property worth £200,000 your share is £50,000.
If your rent is 3% you would pay £4,500 per year or £375 per month on the remaining £150,000 you don't own.
Your mortgage is another monthly cost. You will make repyaments on your mortgage until it repaid.
The amount you pay will be determined by the share you purchase, how much of a deposit you put down, the length left on your mortgage term and the mortgage interest rate.
Service charges are payments made by a homeowner to a housing association for services such as maintenance, upkeep of communal areas like gardens, and the charges also usually include the cost of management.
Service charges vary from development to development, and can go up or down each year without any limit except that the charge is reasonable for services received.
Your lease will outline what you are liable to pay for as the proportion of the charge you will need to pay.
Building insurance is the responsibility of the freeholder, and this will usually be the housing association. This cost is usually incorporated into the service charge.
Don't forget you will also need to get contents insurance which covers all your furniture, white goods, and personal belongings - this is the responsibility of the homeowner.
