Just like any home, a shared ownership home will come with its own set of monthly bills, which will need to be considered ahead of securing your property.
Mortgage repayments
As you own part of your shared ownership home, you will need to make repayments on your mortgage until this has been repaid. This amount can vary depending on the amount you have borrowed and how long your mortgage term is.
Access this handy mortgage calculator to give you an idea of costings.
Rent
We will calculate how much rent and service charge you will need to pay, and the exact figure will be shared with you following your application. This tends to be around 2.75%.
For example:
Property value: £200,000
Your share: 40% (£80,000)
Our share: 60% (120,000)
Yearly rent (charged at 2.75%): £120,000 x 2.75% = £3,300 per year
Monthly rent: £3,300 divided by 12 = £275 per month
Service charge
Service charges are charged separately from your rent and is an additional payment towards the cost of providing and maintaining any communal areas and services outside your home.
The cost of your service charge will be confirmed with you following your application.
Home insurance
Buildings insurance is included within your service charge payment. This covers the financial cost of repairing damage to the physical structure of your property.
Contents insurance, which covers items such as your carpet, furniture and personal belongings is your responsibility and something we would encourage you to get.
Take a look at contents insurance quotes on Compare the Market or Confused.com.
Other costs
Other monthly costs to bear in mind include:
- Council tax
- Energy bills
- Water bill
- TV, broadband and phone bills
- TV licence
- Food and home essentials
- Luxuries
Shared ownership buyers guide
Common questions and answers, take a look at our buyers guide or read our FAQs section.
Shared ownership buyers guideDownload(10.74 MB)
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