Reservation Deposit
This is a fee of £350 payable to Connect Housing which is non-refundable and will be deducted from the purchase price of the property upon legal completion. The safe receipt of this sum will secure a specific property to the nominated purchaser.
Mortgage Deposit
This is the amount of your initial financial contribution to the property before securing a mortgage on the remaining purchase price. The larger deposit you are able to place on the property reduces your ‘loan to value’ (LTV) which is the percentage of your mortgage amount in relation to the purchase price. Generally a lower LTV rate reduces your perceived financial risk to a lender and better mortgage products become available.
Management Agreement
Where there is a management company responsible for a block or development there may be a one off charge associated with the set up costs.
Mortgage Arrangement Fee
This is the amount of money that a mortgage lender will charge you for organising your mortgage. This fee will sometimes be a set amount or a percentage of the mortgage amount borrowed; it can be added on to the mortgage or paid up front to the lender upon completion.
Legal Fees
The legal process of transferring the ownership of the property from the present owner to the buyer is known as conveyancing. We suggest that you appoint representation from an established legal firm who also have experience in Shared Ownership. When appointing this legal representation it is advisable that you fully research the firm you choose and where possible obtain estimates in advance for this work.
It is advisable that you
• Check whether the fee is fixed
• Enquire if they have a ‘no sale no fee’ policy
• Check if the figure includes dispersements like stamp duty, search fees, land registry fees, expenses and VAT
• Find out if there are any charges due if the sale falls through before the contracts are exchanged.
Stamp Duty
This is the tax you pay when you buy a property. You should check with your solicitor whether stamp duty is payable at the time of your purchase. If stamp duty is payable, you can either pay duty on your share or on the full value of the property. Your solicitor/ should be able to advise you on which option to take. The amount of Stamp Duty which is due is a percentage of the value of the property and falls in to thresholds as to how much this will be. For further information on this please refer to www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/DG_10010529|
Moving Costs
You may need to consider the cost of transportation and packaging of your belongings to move from one property to another.
Flooring & Soft Furnishings
New properties do not come with flooring as standard. Any items included in the property by a prior owner will not be the responsibility of Connect Housing to maintain or replace unless otherwise stated.
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