What costs are involved when buying a Resale home?

Buying a home can be costly. As well as your mortgage deposit, you may need to have funds available to cover some of the following:

• Reservation fee.

• Mortgage valuation, application and any advisers' fees (if applicable).

• Solicitors fees.

• Survey and inspection fees (optional).

This list is not exhaustive and additional costs may be incurred. 

What do I need to know?

Some key points to note are:

•    Your lease will contain information on all your rights and your obligations.
•    You are fully responsible for repair and maintenance.
•    You are responsible for rent, service charge and building insurance payments (where applicable). These are reviewed annually. 
•    There may be restrictions on having pets, particularly if you are buying a flat.
•    Consent to sublet the property will only be given in exceptional circumstances. 
•    You are buying the property “sold as seen”, you can opt to have surveys carried out. 
 

What does my solicitor do?

Your solicitor is there to represent you in the purchase and make sure you understand the contracts and the legal obligations you are signing up to. They also report to your mortgage lender and confirm to them that the property you are buying meets the legal requirements for them to give you your mortgage.

Your solicitor will carry out the following tasks:

•    Obtain a from the sellers solicitors; draft contract, fixtures and fittings list and important leasehold documentation.
•    Instruct searches to be carried out such as; local authority, environmental, water/drainage and land registry searches.
•    Liaise with your mortgage provider.
•    Raise enquiries with the seller’s solicitor.
•    Report to both you and your mortgage lender on their findings and advise of any points to note.
•    Ask you to pay the deposit amount to them, so that they are in funds in time for exchange.

We know that sometimes solicitors can seem intimidating, but it is best to speak to them regularly to make sure you understand what you are buying. It's helpful to know the recent tasks they've done for you, what they're currently working on, and what the next steps are. If they're waiting for something, they should explain what it is, who will provide it, and estimate how long it will take. Feel free to ask them to explain things more thoroughly or clarify anything you don't understand.
 

What questions should I ask when trying to find a suitable solicitor?

It's helpful to understand what you're committing to before selecting your solicitor. Starting with solicitors experienced in shared ownership sales is a good idea. They can provide the best guidance on the process, making the transaction smoother and reducing the time it takes for you to get the keys to your new home. 

Some questions that may help when you are shopping around, are:

• Have you dealt with shared ownership purchases before?

• What are your fees and what does this cover, are there additional costs I need to be aware of?

• Are you approved by my mortgage lender?

• How will you communicate with me and how often?

• Will I have a dedicated person dealing with my purchase?

• When do I need to pay my fees?

• Which professional bodies are you registered with?

What do I need to arrange when I know we have an exchange and completion date?

Can I buy more shares on my home?

This is also known as Staircasing, most of our shared owners have the option to buy up to 100% of their home.  In some rural areas this is restricted to 80% to help us to keep affordable homes in the area.

Find out more about buying more shares.

Will I need a lease extension?

As a shared owner, you will have a lease and the term decreases over time. When a lease term becomes low, typically 85 years or less you may need to consider getting a lease extension. It could make it harder to obtain a mortgage and it could make your property harder to sell in the future. Please speak to your mortgage broker and solicitor to check if this is required.