Introduction

Are you considering dipping your toes into the property market with a shared ownership scheme? Great choice! It's like having your cake and eating it too - you get the thrill of homeownership without the full plate of costs. But wait, there's a slice of this cake that needs a closer look: the legal side of things. Specifically, what's it going to cost you in solicitors fees for a shared ownership property?

Contents

What is Shared Ownership?

First off, let's get our heads around what shared ownership actually means. Imagine buying a portion of a property (let's say 25-75%) and renting the rest. You get to live in your dream home, and over time, you can buy more shares until you own it outright. Sounds good, right?

Solicitors: They are your legal lifeguards

Enter the shared ownership solicitor. Think of them as your legal lifeguard, guiding you safely through the choppy waters of property purchasing. These legal pros handle the conveyancing process - that's the legal transfer of home ownership from the seller to you.

Shared Ownership Legal Fees: What's involved?

Now, let's talk about the costs. Shared ownership legal fees can be a bit of a mixed bag and can vary widely depending on several factors. But don't worry, we’re here to break it down for you.

  • Conveyancing Fees: This is the bread and butter of your solicitor's work. It involves all the legal mumbo jumbo of buying your slice of the property. The fees can range from £850 to £1,500 or more, depending on the complexity of the transaction and the value of the property.
  • Disbursements: These are the extra costs your solicitor pays on your behalf. Think of it like the side dishes that come with your main course. This includes things like search fees (around £250-£450), Land Registry fees (about £20-£910, depending on the property price), and other bits and bobs.
  • Stamp Duty Land Tax: Ah, the dreaded Stamp Duty. It's like the unexpected guest at your housewarming party. But here's the good news: as a shared ownership buyer, you might get a discount or even be exempt, depending on the property value and if you're a first-time buyer.
  • Leasehold Related Costs: Since most shared ownership properties are leasehold, there might be additional costs. These can include notice of transfer fees, deed of covenant fees, and certificate of compliance fees. These can range from a few quid to a few hundred.

Finding Your Shared Ownership Conveyancer

Choosing the right shared ownership conveyancer is as important as picking the right house. Most solicitors can handle shared ownership transactions, it’s not necessarily a dark art to them. They should be able to explain the process in plain English (or whatever language you speak at home), so you're not left scratching your head over legal jargon.

How much should I budget?

So, how much should you budget for these legal fees? A good rule of thumb is to set aside about £1,500 to £3,000. This should cover most of the costs, but always prepare for a little extra, just in case. Then just add any stamp duty you may need to pay on top.

Example Quotes

At HouseLegal we connect you with conveyancing solicitors to provide you with comparative quotes for your house move. See below which are some sample quotes generated by some of our conveyancing solicitors:

Quotes generated December 2023 for a property worth £150,000 in the Midlands.

  Legal Fee Disbursements Total
Solicitor A £690 £729 £1,419
Solicitor B £788 £766 £1,554
Solicitor C £720 £1,419 £1,869
Solicitor D £790 £1,473 £2,264

Wrapping It Up

Buying a shared ownership property is like embarking on an exciting journey. And while the solicitors fees might seem like a bit of a puzzle at first, with the right information and a good conveyancer by your side, it's a puzzle you can definitely solve.

So, as you step into the world of shared ownership, keep these costs in mind, find yourself a reliable shared ownership solicitor, and get ready to make your home-owning dreams a reality! Use the links on this page to obtain your instant conveyancing quotes. Happy house hunting!