The cost of buying your tenant shared ownership lease will depend on the market value of your property (minus any improvements that you have carried out), the number of shares you want to buy and the amount of right to buy discount you are entitled to.

Below is an example of the costs associated with three share options based on a house worth £270,000:

  • estimated value of the house: £270,000
  • monthly rent: £440
  • discount entitlement: £94,500

(Full minimum discount available based on the above valuation and a tenancy of three to five years).

Overall costs of the property

Initial share purchase     25% 35% 50% Right to buy outright purchase
Value of share purchase £67,500 £94,500 £135,000 £270,000
Discount £23,625 £33,075 £47,250  £94,500
Mortgage required     £43,875 £61,425 £87,750 £175,000

In addition to the overall cost of your home, you should also consider the costs incurred as a part of the buying process. These costs include the deposit, mortgage arrangement fees, solicitors’ fees and Stamp Duty Land Tax.

Potential monthly expense

Proportion of monthly rent payable £330 £286 £220 £0
Buildings insurance £20 £20 £20 £20
Estimated monthly mortgage

(repayments based on a 25 year term and 5% interest)
£256 £359 £513 £1,026
Total estimated combined monthly costs £606 £665 £753 £1,046

Your home is at risk if you do not keep up repayments on both your mortgage and your rent.