So, when buying and selling shared ownership houses, what are the costs you can expect to see? When it comes to selling your shared ownership property, there are some costs to consider. We’ve already discussed Estate Agent fees when selling shared ownership.
In this blog, we explain what shared ownership costs are involved when buying and selling these homes.
Table of Contents
Shared ownership selling fees, what are the costs?
Selling shared ownership, what are the costs to consider? Depending on who you decide to sell with, requirements and their prices can vary. So be sure you’re getting the best deal and support!
Shared Ownership Valuation Fees
Before your shared ownership property goes on the market, it must be valued. This means it’s going for a fair price, and your housing association may have a list of recommended suppliers you can use.
*Average Price: £240-£500
Shared Ownership Marketing fees
To ensure a sale, good advertising material for your shared ownership property are essential. These should include floor plans, images and the actual advertisement! You can look to advertise your shared ownership property with us if you like.
*Average Price: £350
Shared Ownership Legal Fees
These legal fees can be a little more confusing, especially when you’re trying to gauge what they cover.
*Average Price: £450 – £500 (excluding personal legal fees)
Leasehold Information Pack
Leasehold Information Packs include useful information for potential buyers, such as information on how the property and grounds are managed and any fees that this includes. Find out more about shared ownership leasehold.
*Average Price: £200 – £300
Energy Performance Certificate
If your current EPC certificate is more than 10 years old, you’re legally required to get a new one before the property can be sold. It indicates how costly it is to power and heat the property. Find out if you have an up to date energy certificate.
*Average Price: £60 – £120
Shared Ownership Assignment fee
An assignment fee is essentially your housing association fee for finding a buyer (similar to an estate agent). It’s only applicable if the property actually sells.
*Average Price: 1% of the total amount the property sells for (not just your share)
What are the costs involved when buying shared ownership?
We’ve just covered the selling side of shared ownership. So when buying shared ownership, what are the costs to consider? Well the amount can vary significantly. This can depend on the share amount of the shared ownership property you are buying. Also the amount you will need for a mortgage deposit and legal fees may vary depending on the firm you use and the size of the property.
Shared Ownership Mortgage deposit
You will be required to pay a deposit to for the mortgage on the share of the property you are purchasing.
*Average Price: 5% – 10% of your share price
Shared Ownership Legal fees
As previously discussed, there are various shared ownership legal fees, whether you’re purchasing your first share, or planning on staircasing. Bear in mind, some solicitors offer a fixed fee – be sure to get several quotes before making your decision!
*Average Price: Starting from £750+
Shared Ownership Stamp duty
Depending on your share of the property, you may be required to pay Stamp Duty. You can either pay the full amount outright (helpful if you plan to staircase) or pay in instalments based on your share.
Average Price: 0% on the first £125,000 of your property (current SDLT threshold), 15% of any additional value
Monthly costs to consider when buying a shared ownership home
Due to shared ownership being a leasehold, you will be required to pay the following on a monthly basis:
- Mortgage – Based on the share of the property you own
- Rent – This covers the share of the property you don’t own
- Building / Ground Management – Covered in your Leasehold Information Pack, you may be required to pay for the management of the communal aspects of your property
- Repairs – Although sparse, you are responsible for any essential repairs on the property
- Bills – Our blog on the top 5 important bills you may have forgotten gives you a good idea of what you’ll need to consider
Average Price: Completely dependent on the property, be sure to price compare for the best deals!
If you’re interested in purchasing a shared ownership property, you can browse the current shared ownership houses available now on our website.
With an abundance of resources, the MovingSoon Hub also hold answers to any additional questions you may have on shared ownership costs and other aspects of the scheme.
*Source: Google search
Find part buy part rent properties available now
Shared Ownership: Key Topics
- Are shared ownership houses leasehold or freehold?
- What questions should you ask when viewing a shared ownership property?
- Is shared ownership right for you?
- What is the downside to shared ownership houses?
- What does shared ownership service charge cover?
- What are solicitors fees for selling shared ownership property?
- Shared ownership vs renting what will you do?
- How does shared ownership work when you sell?
- Is shared ownership only for first time buyers?
- How does shared ownership staircasing work?
