Buying a shared ownership home is an exciting time, but there are also lots of costs to think about.

Examples of costs you might need to consider when buying a home include:

Upfront costs

You’ll need to have a deposit to buy your home. Usually, this is a minimum of 5%, although some lenders may ask for a 10% deposit. You may also have to pay Stamp Duty Land Tax (SDLT), which your solicitor can advise you about.

Other upfront costs include:

• Solicitor fees
• Search costs
• A £200 reservation fee (this is deducted from the final amount on completion of contracts)

Ongoing costs

Rent

You’ll need to pay us rent every month on the share of your home that you don’t own.

Service charges

You might need to pay a service charge and/or a third-party management fees. These costs usually cover the maintenance of public open spaces around the development you live on. If you’re buying a flat, the service charge usually covers the maintenance of communal or shared areas within your block. Find out more about service charges.

Insurance

You’ll pay a monthly fee towards building insurance. This will be collected at the same time as the rent, service charge and/or the third-party management fee. You can also choose to take out contents insurance to cover the cost of replacing your personal belongings in the event of things like fire, theft, flooding etc.

Utility bills

As well as water and energy bills, you’ll also have to pay Council Tax and other bills associated with home ownership.

Other costs

Once you get your home, you might need to pay for carpeting or other flooring. You’re also responsible for paying for any repairs or maintenance to your home. Find out more about your other responsibilities as a shared owner.

You’ll also need to pay administration and solicitor fees if you sell your home in the future, buy more shares or transfer your home into different names – these are just examples, and there may be other instances where an administration fee and/or legal fees apply).