In this guide, we’ll walk you through a clear real example of Shared Ownership costs. From the initial deposit and upfront fees to monthly outgoings and even a staircasing example, you’ll see exactly how Shared Ownership prices work in practice. Whether you’re comparing options or just starting your research, this breakdown will help you understand the true cost of buying a Shared Ownership home.
How Shared Ownership works
Shared Ownership is a government-backed scheme that allows buyers to purchase a share of a property (usually between 25% and 75%) and pay rent on the remaining share. Over time, buyers can increase their share through a process called Staircasing until they eventually own 100% of the home. This makes it an accessible route onto the property ladder, especially in areas where buying outright can feel out of reach.
Key benefits include:
- Lower deposit requirements compared to buying outright.
- Often lower monthly costs when compared to renting in the same area.
- The option to Staircase and build equity gradually.
Shared Ownership deposit
One of the major draws of Shared Ownership is that deposits are much lower than buying on the open market. Instead of paying a deposit based on the full market value of the property, the deposit is calculated only on the share you buy.
For example, if you were to buy a 25% share of a £400,000 property (£100,000), a 10% deposit would be just £10,000 - compared to £40,000 if you bought the whole property outright. In places like London, this lower cost to entry can be a huge help.
Shared Ownership purchase costs:
When buying a home through Shared Ownership, there are additional upfront costs beyond the deposit to consider. These indicative costs may vary depending on the property, lender, solicitor, or mortgage advisor you use:
- £500 Reservation fee: Secures the property and is deducted from the final purchase price if you proceed.
- £700 Solicitor’s fee: Covers legal work such as reviewing contracts and transferring ownership.
- £600 Legal disbursements: Includes Land Registry fees and local authority searches.
- £400 Mortgage advisor fee: Pays for tailored mortgage advice.
- £0–£800 Mortgage valuation fee: Charged by the lender to confirm the property’s value.
- £0–£999 Mortgage arrangement fee: The lender’s setup fee, payable upfront or added to your loan.
These fees can add up, so it’s important to budget for them early on in the process to avoid any surprises.
Shared Ownership monthly costs
Monthly outgoings under Shared Ownership are made up of three main elements:
- Mortgage repayments on your share.
- Rent paid on the unsold share.
- Service charges for the upkeep of communal areas, building insurance, and maintenance.
Combined, these can often be lower than renting privately in the same area, with the additional advantage that they also allow you to build equity in your share of the property.
Shared Ownership real example costs
Let’s look at two real developments to give you a clearer picture. Note that financial information provided is estimated and should be used for guidance only. Speak to an Independent Mortgage Advisor for more details about the costs involved with buying a home.
New Mansion Square
Located by the riverside in Battersea, New Mansion Square offers the final collection of beautifully designed 1-bedroom Shared Ownership apartments. It’s just moments from Battersea Power Station, with homes combining modern open-plan layouts, private balconies, and high-quality finishes with the convenience of Zone 1 living.
Here is an example of the costs for a 1-bed apartment at New Mansion Square:
- Full Value: £605,000
- Share Value (25%): £151,250
- Deposit Required: £15,125
- Monthly Mortgage: £824
- Monthly Rent: £945
- Monthly Service Charge: £207
- Total Monthly Cost: £1,976
- Guidance Household Income: £71,212
- Max Household Income: £90,000
KEWB
KEWB is a new collection of 1, 2 and 3-bedroom Shared Ownership apartments in Brentford, perfectly placed between the Royal Botanic Gardens at Kew and Gunnersbury Park. Just a short walk from Kew Bridge Station and moments from the River Thames, KEWB combines suburban tranquillity with excellent connections into central London. With private balconies, contemporary interiors, and green spaces on your doorstep, these homes offer a rare chance to own in one of West London’s most desirable riverside neighbourhoods.
Here is an example of the costs of a 1-bed apartment at KEWB:
- Full Value: £432,500
- Share Value (25%): £108,125
- Deposit Required: £10,813
- Monthly Mortgage: £589
- Monthly Rent: £743
- Monthly Service Charge: £238
- Total Monthly Cost: £1,571
- Guidance Household Income: £63,566
- Max Household Income: £90,000
These examples highlight how Shared Ownership can bring high-value homes into reach with manageable deposits and monthly costs.
Browse our Shared Ownership homes
An example of Staircasing costs
Staircasing is the process of buying additional shares in your Shared Ownership property, which reduces the rent you pay and increases the equity you own. Let’s look at a practical example.
Imagine you purchased a 25% share of a £605,000 apartment at New Mansion Square. Your initial share cost £151,250 with a deposit of £15,125. Your monthly outgoings are around £1,976, made up of mortgage payments (£824), rent (£945), and a service charge (£207).
Now, let’s say you decide to staircase by an additional 10% share:
- Current full market value: £605,000
- 10% share value: £60,500
- New ownership share: 35% (25% + 10%)
- Revised share owned: £211,750 in equity
By purchasing this extra share, you won’t need to provide a deposit. Instead, you’ll arrange for a mortgage (or use savings) to cover the cost of the new share. Your monthly mortgage will rise to reflect the larger loan, but your rent will fall because you’re paying it on a smaller share of the property. The overall increase in your monthly cost is often less than people expect. More importantly, you’ll own a greater portion of your home and build equity faster.
It's important to note when staircasing, you will need to arrange a new valuation of your property, as the cost of the additional shares is based on the current market value of the property. This ensures the price you pay reflects the most up-to-date property value.
This example shows how staircasing can be a flexible way to work towards full ownership over time, without needing to commit to 100% from the start.
Frequently asked questions about Shared Ownership costs
The deposit is based on the share you buy, not the full property value. For a £100,000 share, a 10% deposit would be £10,000.
Rent varies depending on the value of the unsold share, but typically it’s around 2.75% of that share per year, divided into monthly payments.
Beyond the deposit, you’ll need to budget for solicitor’s fees, mortgage fees, reservation fees, and service charges.
