Shared Ownership first time buyer fees?

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robboa
robboa Posts: 28 Forumite
First Post
in Mortgages & endowments
Hello guys


Looking to buy a 25 % share of a £380,000 house with a £5000 deposit.


I'm just looking for someone to help with a breakdown of average initial costs we will incur on top of the £5000. I think i've read we should expect to pay about £2000 in fees but if that's correct can someone help with a rough breakdown?


Thanks

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  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    A lot of solicitors for a shared ownership purchase base the fees on the full value rather than the share. Just means the costs are a bit higher. They also charge a bit more for it being a leasehold and using a mortgage so probably around £1700 ish I'd expect. Maybe cheaper if you shop around, maybe a bit more. Depends where you are in the country.

    You might want a survey so another £500+ for that

    Mortgage fees - depends on if you are paying a broker, or the lender has fees etc
  • scholesfan88
    scholesfan88 Posts: 265 Forumite
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    We are currently buying a new build shared ownership property worth £210k.

    Our costs so far:

    Legal Fees: £1250
    Mortgage Lenders legal fee: £120
    Valuation fee: £225
    Mortgage application fee: £130
    Broker fee: Free as went with Habito

    In addition we need to pay 2 x months rent upon completion and the annual estate maintenance fee.

    Worth noting that some lenders will specify that you have to use a solicitor on their approved panel when buying shared ownership, like ours did. Shop around as the quotes vary wildly.

    We went with abit of a niche lender and they seem to charge a fee for everything, you may get a free valuation etc...
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    Those legals seem very good - I get staff discount and am not paying much less than that! Without discount I struggled to find anything remotely competitive.

    I think your lender is the same as (likely) mine too :)

    I think around the £2k mark is a good ballpark figure - if you get a free val from a more mainstream lender (and no app fee!!) then bonus!
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