What costs are involved in buying a shared ownership property?
As with all house purchases, the initial costs include a survey, legal fees, stamp duty, a deposit (if required), mortgage indemnity insurance (if required) and removal costs. The ongoing costs will include mortgage repayments, rent, repairs, insurance and service charges. For a house, the shared owner will be responsible for all repairs and redecoration both internally and externally. The RSL will insure the structure of the property and the shared owner will have to pay a small management charge to cover this, and to help meet the costs of rent collection. For an apartment, the shared owner will be responsible for all repairs and redecoration internally. The RSL will undertake to keep the building in which the property is situated in good structural repair, to keep the structure insured and to keep common parts decorated, cleaned and lighted. The shared owner will have to pay a share of these costs and this is called a service charge.
