
Understanding the Cost of Shared Ownership
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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.