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Costs involved in shared ownership

How much it costs to buy a shared ownership property

If you decide to buy a shared ownership property you’ll need to pay:

  • legal fees
  • a deposit (usually between 5% and 10% of the share you’re buying)
  • costs of a mortgage valuation

You may also need to pay for:

  • your housing provider’s legal fees
  • a reservation fee, to reserve the home you want
  • Stamp Duty Land Tax (SDLT)
  • a financial assessment with a financial adviser
  • a survey to inspect the condition of the property (optional)

You’ll need a conveyancer (solicitor) to do the legal work for buying a property. You may also need to pay towards the housing provider’s legal fees. Ask them in advance.

Your housing provider will suggest a conveyancer for you to use, but you can choose your own, as long as the housing provider approves them.

Deposit

You’ll need to pay a deposit. This is usually between 5% and 10% of the share you’re buying.

For example, if you’re buying 25% of a property worth £400,000, your share would cost £100,000. This means you’d need to pay a deposit of between £5,000 and £10,000.

Reservation fee

When you find a property you want to buy, you need to pay the housing provider a reservation fee to secure it. The fee will be taken off the final amount you pay when you complete the purchase.

Financial assessment

The housing provider (housing association) will arrange for you to have a financial assessment with a financial adviser they choose. This is to work out how much of the property you can afford to buy.

The total monthly cost of your mortgage, rent and service charges must be no more than 45% of your take home pay (your income after tax has been deducted).

And your total mortgage amount should be no more than 4.5 times your gross annual income (your salary before tax deductions).

You do not have to buy the maximum share you can afford. You can choose to buy less.

Stamp Duty Land Tax (SDLT)

You may have to pay Stamp Duty Land Tax (SDLT) when you buy a property through a shared ownership scheme.

You can choose to either:

  • make a one-off payment based on the market value of the property (“market value election”)
  • pay stamp duty in stages

If you’re a first-time buyer and buying your first share, you may be able to reduce the amount of tax you pay by claiming relief. See guidance on Stamp Duty Land Tax relief for land or property transactions on GOV.UK.

Example of the cost of buying a shared ownership property

How much it could cost a first-time buyer to buy 25% of a property with a total value of £400,000
Reservation fee £300
Your conveyancer (solicitor) fees £2,000
Landlord's conveyancer legal admin fees £400
10% deposit on a 25% share £10,000
Survey £1,500
Mortgage valuation £300
Total cost (to buy the property) £14,500
Last updated:
15 June 2026
Next review:
15 June 2028
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