How should we divide costs incurred in buying and selling the property?
When buying the property with your share to buy mortgage, you will incur ancillary costs, such as stamp duty and legal fees. It is up to you how these costs are divided, but given that these costs can be significant (for example, stamp duty is applied at 3% of the purchase price on properties over 250,000) we would recommend that you divide these costs according to each applicants equity share in the property. If you sold the property, this would be covered by the Share to Buy Legal Agreement which provides that the costs involved in selling the property, such as legal fees and estate agents fees, are divided according to each owners equity stake in the property.
