After the purchase
To make sure that you enjoy all the benefits of a brand new home within our shared ownership scheme, you must also consider the on-going costs that you will have to pay each month and which are typically:
Each month you will make payment to your mortgage lender, usually by direct debit. The mortgage payment is between you and your mortgage lender, however as we own part of your home, we want to make sure our investment is protected, just as much as you do.
If you fall behind on your mortgage payments, or you think it could happen, you need to let us and your mortgage lender know as soon as possible. Many mortgage lenders will allow you to stretch your payments over a longer period while you both find a permanent solution. If you do not get help, or your financial problems continue and you get into debt, the mortgage lender can repossess your home. If this happens you might lose all the money you put into your home.
Buying a shared ownership home means that you will be paying an affordable monthly rent in addition to your mortgage repayment. This is collected by monthly direct debit. This makes payment simple and convenient for everyone as the payments are taken directly from your bank account. Your rent will be reviewed in April each year, as agreed in your lease. We will let you know in advance if your rent amount will change.
If you miss a payment, our Rents Team will contact you to discuss your situation and to arrange a repayment plan for you. However, if you continue not to pay your rent, we reserve the right to take legal action that may result in forfeiture of your Lease.
Example monthly payments
This table illustrates the estimated on-going costs for two properties, one valued at £100,000 and one at £150,000. Please note these are estimates and on-going costs will vary depending on the individual property.
Asking price based on a 50% share
Property Value £100,000
Property Value £150,000
|Total Monthly Outgoings
*Assuming 5% interest rate over 25 years
This charge is collected monthly and varies according to the type and location of property that you have chosen and typically includes the following elements: buildings insurance, management charge, upkeep of communal areas such as pathways, courtyards or un-adopted roads and often services provided by a third party management company.
The service charge for apartments covers additional services such as:
- The cost of all day-to-day and future repairs and maintenance to the outside of the building and all the shared areas. This could be the roof, communal TV aerial, entry phones – anything that is used by everyone in the apartment block.
- The cost of cleaning and gardening to shared areas. We only charge you what we have to pay out on services. An estimate of cost will be sent to you annually in February.
As a freeholder, we need to make sure that your home is adequately insured. We have a block policy insurance which covers all our properties and therefore the premium we pay to the provider is reduced and the savings are passed on to you.
As a shared owner you will be responsible for your own bills including: gas, electricity, water, council tax, telephone, TV licence and any other services that you may require e.g. telephone, internet.
This covers our cost of providing and managing the services for you.