When you decide to step into the property market, one of the key factors you’ll come across is the reservation fee. This is an essential part of securing your desired property and an upfront commitment to show your intention to purchase the property.
The reservation fee is typically set by each housing association. It varies depending on several factors. It can range anywhere between £200 and £500 or even more.
This fee ensures that the property is taken off the market for a specific period, during which no one else can claim it. It’s a form of ‘holding deposit’ while you get all other necessary aspects – such as mortgages and legalities – sorted out.
Keep in mind, though, that this reservation fee is typically non-refundable or partially refundable should you choose to withdraw from purchasing; however, if all goes smoothly and you reach completion stage, then this amount usually gets deducted from your overall purchase cost. Therefore, it acts as a deposit towards your new home.
Discovering the right shared ownership property is an essential step towards owning a home, as is understanding the reservation fee process. With Guinness Homes, we’ve made this step even more accessible for those looking to use a shared ownership scheme.
Most housing associations or developers might ask for reservation fees ranging from £200 to £500 (based on our research of over 130 shared ownership providers). Guinness Homes stands out from the crowd by offering the lowest Shared Ownership reservation fee on the market – at just £99*.
This reduced fee makes securing your desired property more affordable.
The function of this fee remains the same: it ensures that your chosen property is taken off the market while you complete your mortgage and handle all necessary paperwork. The lowered amount does not imply any compromises on the quality of homes available or the services provided.
Just like with other providers, should everything proceed smoothly to the purchase completion stage, this £99 will be subtracted from your overall purchase cost.
By offering such an attractive low reservation fee, Guinness Homes certainly eases one financial concern off your mind when stepping into shared ownership.
View our developments*As of October 2024, a survey conducted of over 137 providers of Shared Ownership revealed that Guinness Homes has the lowest payable reservation fee publicly available on websites and/or other marketing materials at £99 per Shared Ownership home. Prima Group require volunteer service instead of a reservation fee. Homes that were operated by Shepherds Bush Housing Association and subsequently taken over by The Guinness Partnership in the merger of December 2023, may have pre-existing reservation fees that differ to that of The Guinness Partnership.