Cost of buying through Shared Ownership
We have a helpful video to give you an idea of the costs involved in buying your home through Shared Ownership:
Cost of buying through Shared Ownership
To give you an idea of the costs involved in buying your home through Shared Ownership, we have put together an illustration. These are based on a two-bedroom apartment.
Figures are of an indicative Shared Ownership property only and you should speak to an Independent Mortgage Advisor (IFA) to understand your personal affordability for a Shared Ownership home.
Other estimated buying costs
When buying a home through Shared Ownership, like with most other homes, there are a few additional costs involved with the initial purchase including:
- £500 Reservation fee: This secures the property and is deducted from the final purchase price if you go ahead with purchase.
- £700 Solicitor’s fee: Covers the legal work involved in transferring ownership and reviewing contracts.
- £600 Legal disbursements: These are additional legal costs such as local authority searches and Land Registry fees.
- £400 Mortgage advisor fee: This pays for professional mortgage advice specific to your financial circumstances.
- £0–£800 Mortgage valuation fee: Lenders will charge this to assess the property’s value before offering a mortgage.
- £0–£999 Mortgage arrangement fee: A lender fee for setting up your mortgage, often added to the loan or paid upfront.
For more information about the full cost of buying a Shared Ownership home, contact our team for more information.
Shared Ownership Affordability Calculator
Want help understanding your personal finances and whether you can afford to buy a home through Shared Ownership?
To help, we have created a Shared Ownership Affordability Calculator to help you quickly assess what you can afford before diving into the home-purchasing journey.
Our calculator is designed to give you a clear picture of what you can realistically afford in today's housing market.
*The Shared Ownership affordability calculator should be used for guidance only and you should speak to an Independent Mortgage Advisor for more details about the costs of buying with Shared Ownership.
Frequently asked questions about the costs of Shared Ownership
While Shared Ownership is often more affordable than buying on the open market, it's important to be aware of the full range of Shared Ownership costs. Beyond the monthly payments—which include rent and mortgage—there are other fees to consider. These may include a £500 reservation fee, solicitor costs, legal disbursements, and mortgage-related fees such as advisor fees, valuation fees, and arrangement fees. If you’re not a first-time buyer, Stamp Duty may also apply. Understanding these costs upfront helps you budget more accurately and avoid surprises later on.
The answer depends on your home’s current market value and how much more you want to buy. For example, if your property is worth £420,000 and you currently own 25%, purchasing another 25% would cost around £105,000. You can fund this through savings or a new mortgage, using your current equity as a deposit. Additional staircasing costs include a valuation fee and solicitor costs, which should be factored into your budget alongside the Shared Ownership rent cost, which will decrease as your ownership share increases.
Before moving forward with a Shared Ownership purchase, you’ll need to complete a quick affordability assessment with an Independent Mortgage Advisor (IMA).
The assessment helps determine how much of the property you can afford to buy initially, and what your overall monthly cost of Shared Ownership could look like. It also ensures you meet eligibility criteria and understand the long-term costs of Shared Ownership, such as service charges and potential staircasing fees.
The rent in a Shared Ownership scheme is based on the portion of the property still owned by the housing provider. At Peabody the Shared Ownership rent cost is set at up to a maximum of 2.75% of the unsold equity. For example, if you buy a 25% share of a £450,000 home, rent would be charged on the remaining 75% (£337,500) — around £9,281 per year, or about £773 per month.
However, to keep the monthly cost of Shared Ownership affordable, especially in higher-value areas, the actual percentage charged may be lower than the 2.75% cap. This helps ensure the costs of Shared Ownership remain manageable for buyers.
The service charge in Shared Ownership covers the ongoing costs of maintaining and managing the communal areas and services of your home. This includes concierge, cleaning, repairs, gardening, building insurance, and general upkeep of shared spaces. It ensures your building and the surrounding environment stay in great condition.
Homeowner Stories
Discover a collection of homeowner stories from previous Peabody New Homes purchasers and find out how we were able to help them onto the property ladder and find their dream home through Shared Ownership.
"It feels amazing to be paying my own mortgage instead of someone else’s. I also plan to staircase in the future to increase my ownership share. Never in my wildest dreams did I imagine owning such an incredible property in such a perfect location - but here I am."
"Shared Ownership isn’t something that exists in Italy. I was able to buy a 50% share and find somewhere to call my own."
"We plan to staircase. When we staircase to 100% at The Lanes, we will even own the freehold of the property - something I didn’t think would be possible a few months ago!"
