What charges do I pay with Shared Ownership?
If you’re a shared owner, you’ll pay rent to us as well as your mortgage each month. And a service charge keeps your home and its surroundings in tip-top condition. You can read more about how shared ownership works and what it entails.
In Shared Ownership purchase and resale it's important to be aware that there are other charges that you may encounter, these are outlined below.
Other charges:
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Shared ownership resales (with nomination)
Cost: The maximum amount specified in the lease, plus an additional £390 solicitor fees.
Explained: This is our fee for selling a shared ownership home to a buyer we nominate. The lease will usually specify an amount payable if we nominate a buyer. This is usually a percentage of the market value of the home. If it’s not specified then it will be £1,200 (including VAT).
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Shared ownership resales (no nomination)
Cost: £540 plus £390 solicitor fees (£930 in total).
Explained: This is the fee we charge for administering a sale on the open market to a buyer we have not nominated.
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Re-mortgage approval
Cost: £150.
Explained: Any re-mortgage of a shared ownership home requires our approval.
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Transfer of names
Cost: £150.
Explained: If this is required as part of a re-mortgage approval or further advance, then just one admin fee is payable.
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Notice of transfer / charge / assignment / Certificate of compliance
Cost: £150
Explained: This is included as part of the shared ownership resales admin fee.
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Approval of further advance
Cost: £150
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Management questionnaire
Cost: £350.
Explained: This is for responding to pre-sale enquiries, and is included as part of the shared ownership resales admin fee.
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Extension of lease / issuing a new lease
Cost: £350 plus solicitor and valuation fees (to be confirmed at time of application)
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Deed of Variation
Cost: £150 plus solicitor fees (to be confirmed at time of application).
Explained: When changes need to be made to a lease, transfer agreement or conveyance plan.
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Staircasing
Cost: £250
Explained: Buying more shares in a Shared Ownership home.
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Copy of lease or transfer agreement
Cost: £100
Explained: You will be able to obtain a copy from UK Land Registry for less. Alternatively you may be able to get a copy from your mortgage lender or the solicitors who acted for you when you bought your home.
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Licence to make alterations and improvements to your home, e.g, kitchens, bathrooms, conservatories, etc.
Cost: £250 (initial application only)
Explained: Depending on the complexity of the work, there may be additional costs. This may include solicitor and surveyor fees, as well as costs if changes to a lease are required.
Looking for financial support?
We know that sometimes managing your finances can be difficult. Changes at work, in your family or with any benefits can make it more difficult to make ends meet. And this makes it harder to pay important bills.
If you have a mortgage this is a contract between you and your bank or building society. If you fall behind with your payments, the bank or building society may take possession of your home. If your rent or service charge is in arrears this could also put your home at risk. Please contact The Guinness Partnership as soon as possible if you’re struggling with your finances.
