We know purchasing a home comes with a lot of financial considerations. To help you navigate your journey, we've broken down the main costs of Shared Ownership in the tables below.
Initial buying costs
What is it?
An initial payment to secure the right to buy the property, subject to eligibility and contract.
When is it paid?
At the point of reservation. This sum will be deducted from the completion monies.
Amount
£250
What is it?
All the third party costs related to the purchase of your home. For example, solicitor's fees, mortgage costs and moving costs.
When is it paid?
During the purchasing process.
Amount
Approximately £3,500 - £5,000
What is it?
The amount of money you pay upfront towards the purchase of the home.
When is it paid?
When contracts are exchanged.
Amount
Typically 5% of the share value you are purchasing. Although, it can be more subject to individual circumstances.
What is it?
A tax you pay when you purchase any property in England.
When is it paid?
At completion. You’ll have the option to pay your stamp duty in full, or on the share being purchased - further stamp duty may be payable when you staircase.
Amount
Dependent on % share purchased and the homes value.
To visit the government website for further guidance, click here.
What is it?
Notification that you have been transferred ownership of the home and that your mortgage lender has a legal charge.
When is it paid?
At completion.
Amount
£30 + VAT
Ongoing costs of ownership
What is it?
Money borrowed from a financial institution (bank/building society) to part fund the purchase.
When is it paid?
Monthly.
Amount
Varies depending on sum of monies borrowed and the motgage product.
Will it change in the future?
Subject to change depending on the terms of the mortgage product, overpayments or staircasing.
What is it?
Money that is paid to the landlord on the share of the property they own.
When is it paid?
Monthly.
Amount
Subject to property value and % of ownership. Reviewed annually.
Will it change in the future?
Yes, it will increase by 0.5% above RPI or 1% above CPI each year, subject to the terms of your lease. Rent will reduce if/when you staircase.
What is it?
The costs of maintaining communal areas, including any block or estate costs. For example, grounds maintenance, cleaning or repairs in areas that are shared with others.
When is it paid?
Monthly.
Amount
Development/property specific. Reviewed annually.
Will it change in the future?
Yes, reviewed annually based on the expenditure of the previous year. Service charges typically increase in line with inflation/cost of works.
What is it?
An amount payable to the landlord, if permitted by your lease.
When is it paid?
Monthly. We spread the annual charge out over the year, so that you pay it along with your service charges.
Amount
Development specific. Fixed every 12 months.
Will it change in the future?
Yes, reviewed annually in line with lease.
What is it?
Household bills to cover items not provided by the landlord, e.g. Council Tax, utility bills, contents insurance.
When is it paid?
Monthly/quarterly/yearly.
Amount
Subject to individual household.
Will it change in the future?
Subject to change depending on tariffs and council rates.
Other fee & costs
What is it?
The costs paid by the shared owner to purchase additional shares in their home, including solicitor's fees, mortgage costs and admin fee.
When is it paid?
During the staircasing process.
Amount
Approx. £1,000 - £3,500. Please note, this excludes any stamp duty that may be payable.
Will it change in the future?
Staircasing costs are subject to change due to third party involvement. Costs will be payable on future staircasing transactions.
What is it?
The costs paid by the shared owner in order for home improvements to be carried out, including surveys, legal fees and admin fees.
When is it paid?
At the start of the home improvement project.
Amount
Minor home improvements: TBC
Major home improvements: TBC
What is it?
The costs paid by the shared owner to extend their lease term, including premium, solicitor's fee, valuation fee and admin fee.
When is it paid?
During lease extension process.
Amount
Extension premium varies based on property value and length remaining on lease.
Solicitor/valuation/admin fee: approx. £TBC
What is it?
The fee payable to us for marketing your home and securing a buyer.
When is it paid?
Payable on completion of sale if SNG secure the buyer.
Amount
Standard fee: 1.25% exc. VAT of the property's full market value. Historic leases may vary.
What is it?
The fee payable to us for providing your buyer and their solicitors with leasehold information related to your home.
When is it paid?
Payable once a buyer has been found.
Amount
£TBC inc. VAT. Subject to government guidance.