Monthly Rental Costs vs Shared Ownership
Ever wondered what’s more cost effective; paying a monthly rent or purchasing a property with Shared Ownership?
Well, one of the advantages of buying a Shared Ownership home is that the combined monthly mortgage fees and subsidised rental typically amounts to a lower amount than an equivalent monthly fee for a rental property.
For example, if you buy a share of one of our Shared Ownership homes at The Refinery in London Docklands, your monthly costs will be lower than renting. A two-bedroom apartment at The Refinery will cost £1,390 per month, based on a share of 35%. Whereas, the average price to rent a two-bedroom apartment in the E16 neighbourhood amounts to £1,759*. This equates to a £369 saving every month.
The saving is even greater if you opt for a three-bedroom apartment. With Shared Ownership, the monthly cost for an apartment at The Refinery is £1,656 (based on a 35% share). In comparison, the average monthly rent for a three-bedroom E16 property is £2,281*, making Shared Ownership £625 more economical than renting.
Furthermore, with Shared Ownership, you can rest assured that you’re paying a fair price for your home, as all properties are independently valued by RICS (Royal Institute of Chartered Surveyors).
You also have the chance to decrease your monthly rental repayments with staircasing – a feature that allows you to increase the share you own of your property, all the way up to 100%. That’s because, as you increase your share, the amount you pay each month in rental fees declines.
Should you have any queries or questions about Shared Ownership fees, please do not hesitate to contact our sales team.
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.
*Figures from Zoopla, February 2019