We recommend contacting an Independent Financial Adviser (IFA), for establishing actual mortgage repayments. The deposit required for the mortgage will vary between lenders. Leasehold properties will also be subject to a monthly service charge. The example assumes that the rent on the unsold share is charged at 2.75%. Rental charges vary for each development. Rent and service charge will be subject to an annual review. Ground rent may also be payable.

Examples of Costs

Shared Ownership based on a 35% share the below example acts as a guide only (Terms and conditions apply)

Property Price


Amount of a 35% Share


Remaining 65% Share


Mortgage Amount


Monthly Mortgage Repayments


Rent on the Unsold Equity (2.75%)


Monthly Service Charge



£1396.18 ( mortgage, rent and service charge)


Other Costs

The average deposit required can be 5% or 10% (the above example is based on 10%).

The typical interest rate on a mortgage is 4.5% with a 10% deposit.

A mortgage is commonly done on a 25 year agreement. The above example has been done based on a 25 years agreement.

There maybe a cost from the mortgage provider to do their valuation to confirm they agree on the Full Market Value.  A lot of the time it is free, but some do charge a fee that can be up to £600.

Legal Fees

We can supply a list of reputable solicitors who are familiar with Shared Ownership. Fees can vary. But we recommend that you always obtain a quotation first.

Reservation Fee

A fee of £1,000 (one thousand pounds) is required prior to exchange of contracts and this is paid in 2 stages:

  • Initial fee of £500 is required on reservation.
  • The remaining balance of £500 is required on exchange of contracts.

 Stamp Duty

You as a buyer have a choice to either pay the Stamp Duty when you initially make a purchase (see below) or at a later date. 

Purchase Price                  Stamp Duty Rate

£0 to £125,000                      0%

£125,001 to £250,000          2%

£25,001 to £925,000            5%

£925,000 to £1.5M               10% 

So buyers always pay on their share over £125K or they can pay on the whole property price. Sometimes Stamp Duty can be charged on the rent.

And Lastly…

In addition you’ll need to pay

  • Council Tax
  • Utility Bills (water rates, gas and electricity)
  • Contents insurance