Initial costs
- Deposit
This is based on the portion you’re buying, not the full property value.
- Mortgage fees
Completion fees, valuation fees, and possibly broker fees.
- Legal fees
Solicitor costs for conveyancing and reviewing the lease.
- Stamp duty
May apply depending on the share size and property value. You can pay upfront or defer until staircasing. Read our shared ownership stamp duty guide for more information.
Monthly costs
- Mortgage repayments
On the portion you own.
- Rent
Paid to the housing provider on the remaining portion. We go into more detail on rent further down the page.
- Service charges
This covers things like building maintenance, communal areas, insurance, etc. and is common in flats.
- Ground rent
This is sometimes charged on leasehold properties (although it’s being phased out in many cases).
Ongoing and future costs
- Staircasing fees
When buying more of the property later, you’ll pay:
- A valuation fee
- Legal fees
- Mortgage adjustment fees
- You may also need to pay stamp duty again if your portion will be 80% or more.
- Maintenance and repairs
You’re responsible for upkeep, even if you only own part.
- Selling costs
If you sell, you may pay marketing fees or resale admin charges.
Example breakdown
Let’s say you’re buying a 2-bed flat worth £240,000 through shared ownership, purchasing a 40% portion.
Upfront Costs
- Value of your portion: £96,000
- Deposit (5%): £4,800
- Mortgage fees & legal costs: ~£2,000
- Stamp Duty: £0 (if exempt through being a first time buyer or you choose to defer)
Monthly costs
- Mortgage on £96,000: ~£450/month
- Rent on 60% portion (£144,000) at 2.75%: ~£330/month
- Service charge: £100/month Total monthly cost: ~£880/month
Shared ownership can make homeownership more accessible, but it’s not always cheaper than renting. It’s best to compare all costs and think long-term.
Rent limits
The amount you pay in rent can vary depending on your circumstances:
- New-build homes: Rent is capped at 3% of the value of the landlord’s portion, but most providers charge 2.75%.
- Resale homes: Rent starts at the same level the previous owner was paying.
Rent reviews
Rent is usually reviewed once a year. Any increases will depend on when you signed your lease and are linked with inflation. If inflation is negative, your rent may stay the same.
