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The cost of buying

What you pay for your shared-ownership home will depend on its market value and the share you can afford to buy.

Monthly costs

Here are two examples showing monthly outgoings based on 25%, 40% and 60% shares (other shares are available).

Example 1
Home worth £250,000

Example 2
Home worth £350,000

Equity share of 25%

  • Price = £62,500
  • Estimated mortgage = £379
  • Rent = £429
  • Service charge = £100
  • Council tax = £129
  • Total = £1,037

Equity share of 25%

  • Price = £87,500
  • Estimated mortgage = £531
  • Rent = £601
  • Service charge = £100
  • Council tax = £171
  • Total = £1,403

Equity share of 40%

  • Price = £100,000
  • Estimated mortgage = £607
  • Rent = £343.75
  • Service charge = £100
  • Council tax = £129
  • Total = £1,180

Equity share of 40%

  • Price = £140,000
  • Estimated mortgage = £850
  • Rent = £481
  • Service charge = £100
  • Council tax = £171
  • Total = £1,602

Equity share of 60%

  • Price = £150,000
  • Estimated mortgage = £911
  • Rent = £229
  • Service charge = £100
  • Council tax = £129
  • Total = £1,369

Equity share of 60%

  • Price = £210,000
  • Estimated mortgage = £1,276
  • Rent = £320
  • Service charge = £100
  • Council tax = £171
  • Total = £1,867

Equity share of 100%

  • Price = £250,000
  • Estimated mortgage = £1,519
  • Rent = £0
  • Service charge = £100
  • Council tax = £129
  • Total = £1,748

 Equity share of 100%

  • Price = £350,000
  • Estimated mortgage = £2,126
  • Rent = £0
  • Service charge = £100
  • Council tax = £171
  • Total = £2,397

How we calculated the mortgage
The examples are based on a capital and interest mortgage for 100 per cent of the price over a term of 25 years without tax relief. The interest rate for the mortgage examples is 6.5 per cent and the annual percentage rate (APR) will depend on the amount of the loan and the costs linked to it. The interest rate is based on the approximate level in January 2013 and interest rates may go up or down. When you contact a building society, bank or insurance company for a mortgage, you should always ask for a written quotation. Make sure you understand the type of mortgage you're being offered, as well as:

  • the interest rate
  • the APR, and
  • details of any other associated costs and fees.

Remember the total cost of borrowing a mortgage. If you stay in the home for the full term of the mortgage you'll make 300 payments on a 25-year mortgage. For example, if you have a mortgage of £100,000, you'll make 300 repayments of £607 (at an interest rate of 6.5 per cent) and your total cost of borrowing will be £182,100.

How we calculated the rent
The rent is based on a percentage of the property we own. The examples use 2.75 per cent a year.

How we calculated the service charge
The examples assume you're buying a flat, so they include an estimated service charge of £1,200 a year. This would include your buildings insurance and maintenance costs. Service charges can be higher or lower than this amount. If you buy a house, there is not normally a service charge although you would pay for buildings insurance and other maintenance costs.

How we calculated the council tax
The examples assume you pay council tax of:

  • £1,552 a year on a property value of £250,000
  • £2,055 a year on a property value of £350,000

The actual figure will depend on where you buy and may be higher or lower than this amount.

More information

For more information about shared ownership, phone us on 01932 235801 or email sales@paragonchg.co.uk