Costs of the shared ownership process

We would recommend that you have between £3,000 and £5,000 available to cover the fees associated with moving, which includes solicitor and broker's fees.

Deposit and reservation fees

The reservation fee is the amount you pay to reserve your home. This is deducted from the price you purchase your house at. The reservation feed is paid to the sales team when you view the house.

The housing provider requests a deposit when you exchange contracts. Like the reservation fee, the deposit is taken off the price of your home.

Mortgage valuation fee

Your mortgage lender will arrange a valuation of your home to check that it is worth the price you are paying for it. This fee is requested when you apply for your mortgage.

Mortgage arrangement fees

For fixed rate mortgage there is usually an arrangement or application fee. The longer the interest rate is fixed for, the more expensive the fee will be. These fees are not refundable, so if you pull out later you may lose this money. Your lender will advise when the fee is payable.

Solicitors' fees

Fees include land registry fees, local search fees, and other expenses. You will pay these fees upon completion of the sale.

Stamp Duty Land Tax (SDLT)

Either:

• 1% of the full market value, or
• 1% of the share you buy, plus a proportion of the annual rent.

If the full market value of the home you are buying is over £250,000, then normally the SDLT is 3%.

This is a government tax when buying a home. You must check the stamp duty thresholds when buying a home as these can change. Your solicitor will advise on the exact cost. You pay the SDLT to your solicitor upon completion.

Removal costs 

If you are going to use a removal company to move your furniture, it is recommended that you get two to three quotes as costs can vary enormously. You typically pay on the day you move.