Understanding the Cost of Shared Ownership

Just like if you were buying any home, the following costs are what you should consider:

• Deposit – from 5% of the share cost, not the full value of the property
• Solicitor & Legal Fees
• Mortgage & Valuation fees – this could be to the mortgage lender and/or a financial advisor
• Stamp Duty Land Tax – always seek advice from your solicitor

Once you’ve bought your home, the monthly cost will include:

• Mortgage – this is paid to your mortgage lender
• Rent – paid to Accent Housing
• Service Charge – paid to Accent Housing
• Utility Bills – Gas, electric, water etc.
• Council Tax
• Contents Insurance – No need to insure the building, we do that
• TV License

Taking a closer look at those Mortgage and Rent Payments

Your monthly mortgage payment will depend on the amount you borrow, what deposit you have and the mortgage product and term.

The rent on a new Shared Ownership home is confirmed at the time of purchase. How it is set and the annual review is determined by the Government Regulator.

Here are some examples based on two different property values:

A property with a full value of £200,000

Cost of a 45% share: £90,000

5% Deposit: £4,500

Monthly Rent: £252.08

Monthly Mortgage: £360.01*

Total Monthly Cost £612.09* + service charge

or,

A property with a full value of £375,000

Cost of a 45% share: £168,750

5% Deposit: £8,437.50

Monthly Rent: £472.66*

Monthly Mortgage: £675.02

Total Monthly Cost £1,147.68* + service charge

Often the monthly cost of buying a Shared Ownership home is cheaper than if you were to rent a similar home.

*mortgage payment is based on a 5% deposit, a term of 30 years and an interest rate of 2.99%. The products available to you may differ. Your Home may be repossessed if you do not keep up payments on your mortgage.