How Shared Ownership Reduces the Up-Front Cost of Buying a Home
A new study by TotalMoney has revealed that the upfront cost of getting on the property ladder can reach £125k in London, significantly higher than the UK average of £39k.
The biggest initial expense for first time buyers in London and the South East is the deposit and initial mortgage payment. However, the report found that often buyers underestimate the price of a costly house survey or a home buyer’s report, the latter of which costs £786 on average. The report also found that new buyers also overlook works such as re-wiring a house, which can cost as much as £2,750.
The good news is that when buying a new Shared Ownership property with Southern Home Ownership, many of the up-front costs of buying a home are vastly reduced or not applicable.
For example, with Shared Ownership a deposit is only required for the share of the property that you are buying (typically 35%); a significantly smaller amount of money versus the deposit required to buy a home on the open market.
Also, as our homes are typically brand new, the likelihood of needing to re-wire a property or perform major maintenance works is lower than for older homes. Also, on major new developments, such work is usually covered as part of the ongoing monthly service charge.
Finally, on our brand new homes, most buyers choose to stick with the lender’s survey, rather than purchase an expensive house survey.
Are you looking for a stylish and modern home in London or the South East?
Southern Home Ownership is dedicated to providing stylish, high quality and contemporary new homes for sale on a Shared Ownership basis. If you're a first-time buyer and interested in owning a Shared Ownership property in London or the South East then click on this link to take a look at our latest developments.