Buying Shared Ownership property costs?

[delboy1984]

Hi,

My partner and I are in the process of looking at properties and applying for a mortgage.

We've seen a lovely shared ownership property that we're keen on. We've been told we can get a mortgage but need to find a higher deposit then what we were hoping to pay. So we're trying to work out if we can somehow scrape the deposit together but wanted to check additional costs that we're not factoring in.... Stamp duty, solicitors fees etc.

I'm a first time buyer but my partner has bought before and this is her second property. Will we have to pay stamp duty? The property value is £590k so would we need to pay SD on the whole amount or just the 40% share we are purchasing due to it being shared ownership?

I know solicitors fees vary but can anyone shed any light on amounts please? I'd imagine the buying process will be pretty straightforward being a new build so I'm hoping not much :/

Please check out the hidden costs on shared ownership and the service costs / issues, as you will get all the great customer service to buy and once you've bought all the costs and other issues, including yearly rises and maintenance issues, even on new builds! Having done this, it's a never again for me . Also be aware these properties are often sold at a premium, so issues when you come to sell occur on many developments / properties regarding value / cost. Staircasing costs are also an issue. Please do your homework / check out the reviews on other developments sold by the same company, and go into it with eyes wide open, including looking at who has the other share, particularly some of the housing associations, as the same staff that fail on their rented accommodation / social housing repairs and maintenance are those you will be dealing with!

I wouldn't touch SO but here's the most unbiased info on it, including stamp duty (Point 11)

https://www.moneysavingexpert.com/mortgages/shared-ownership-scheme/

If it is HA house we do not pay any service charges at all, all the maintenance has to be done by us. I have lived in one for 20 years. The only down side is that house prices have gone up so much we will never be able to buy the other 50% so will never own it which could mean we will still have to pay the rent part even when we are retired.

You will have to pay stamp duty because you are not both first time buyers. I assume it would only be on the bit you are buying but I don't know

This is years ago (2007) but I had to pay stamp duty on the whole value despite only having a 50% share. I initially thought my solicitor had advised me poorly but it went all the way to their professional ombudsman/regulator who said it was correct. So definitely check this.

You will be liable for stamp duty as one of you is not a first time buyer.

You can choose to pay SD on either your percentage or the whole property.