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Paragon Asra Housing Ltd

Paragon and Asra have recently joined together to form Paragon Asra Housing Ltd (PA Housing). PA Housing is a leading provider of housing for people and communities across central and southern England. We support more than 50,000 customers who live in more than 24,000 homes.

The cost of buying

What you pay for your shared-ownership home will depend on its market value and the share you can afford to buy. 

Monthly costs

Here are two examples showing monthly outgoings based on 25%, 40% and 60% shares (other shares are available).

Example 1 - a home worth £250,000

Example 2 - a home worth £350,000

Equity share of 25%

  • Price = £62,500
  • Estimated mortgage = £379
  • Rent = £429
  • Service charge = £100
  • Council tax = £129
  • Total = £1,037

Equity share of 25%

  • Price = £87,500
  • Estimated mortgage = £531
  • Rent = £601
  • Service charge = £100
  • Council tax = £171
  • Total = £1,403

Equity share of 40%

  • Price = £100,000
  • Estimated mortgage = £607
  • Rent = £343.75
  • Service charge = £100
  • Council tax = £129
  • Total = £1,180

Equity share of 40%

  • Price = £140,000
  • Estimated mortgage = £850
  • Rent = £481
  • Service charge = £100
  • Council tax = £171
  • Total = £1,602

Equity share of 60%

  • Price = £150,000
  • Estimated mortgage = £911
  • Rent = £229
  • Service charge = £100
  • Council tax = £129
  • Total = £1,369

Equity share of 60%

  • Price = £210,000
  • Estimated mortgage = £1,276
  • Rent = £320
  • Service charge = £100
  • Council tax = £171
  • Total = £1,867

Equity share of 100%

  • Price = £250,000
  • Estimated mortgage = £1,519
  • Rent = £0
  • Service charge = £100
  • Council tax = £129
  • Total = £1,748

Equity share of 100%

  • Price = £350,000
  • Estimated mortgage = £2,126
  • Rent = £0
  • Service charge = £100
  • Council tax = £171
  • Total = £2,397

How we calculated the mortgage

The examples are based on a capital and interest mortgage for 100 per cent of the price over a term of 25 years without tax relief. The interest rate for the mortgage examples is 6.5 per cent and the annual percentage rate (APR) will depend on the amount of the loan and the costs linked to it. The interest rate is based on the approximate level in January 2013 and interest rates may go up or down. When you contact a building society, bank or insurance company for a mortgage, you should always ask for a written quotation. Make sure you understand the type of mortgage you're being offered, as well as:

  • the interest rate
  • the APR, and
  • details of any other associated costs and fees.


Remember the total cost of borrowing a mortgage. If you stay in the home for the full term of the mortgage you'll make 300 payments on a 25-year mortgage. For example, if you have a mortgage of £100,000, you'll make 300 repayments of £607 (at an interest rate of 6.5 per cent) and your total cost of borrowing will be £182,100.

How we calculated the rent

The rent is based on a percentage of the property we own. The examples use 2.75 per cent a year.

How we calculated the service charge

The examples assume you're buying a flat, so they include an estimated service charge of £1,200 a year. This would include your buildings insurance and maintenance costs. Service charges can be higher or lower than this amount. If you buy a house, there is not normally a service charge although you would pay for buildings insurance and other maintenance costs.

How we calculated the council tax

The examples assume you pay council tax of:

  • £1,552 a year on a property value of £250,000
  • £2,055 a year on a property value of £350,000


The actual figure will depend on where you buy and may be higher or lower than this amount.

Other costs to consider

  • When you buy

    To buy a home we anticipate you will need individual (or joint) salaries of at least £21,000 a year, as well as any deposit required by your mortgage lender (normally about 15-20% of the asking price). You will also need to be able to pay about £3,000 to cover moving costs, such as the following.

    • Solicitors fees: £450-£650 +VAT
    • Stamp duty land tax (SDLT): Dependant on purchase price – see guide for more information
    • Land registry fee: £130-£280
    • Bankruptcy search per person named on the mortgage offer: £2
    • Land registry search: £8
    • Leasehold supplement: £75 +VAT
    • Acting for lender: £75 +VAT
    • Telegraphic transfer fee: £40 +VAT
    • Archiving fee: £25 +VAT
    • Landlords registration fee: £50 +VAT
    • Completion of SDLT1: £60 +VAT
    • Contribution towards indemnity insurance
    • Engrossment fee (charged by seller’s solicitor): £75 + VAT
    • Approval of mortgage offer (charged by seller’s solicitor): £40 +VAT
    • Head landlord’s notice fee (if applicable): £50 +VAT
    • Contributions towards searches: £20–£100 +VAT
    • Certificate of compliance fee: On application
  • Legal fees

    These are fees payable to the solicitor who carries out legal work on your behalf.

  • Land registry

    This fee ensures you own the property. If you do not pay this you do not officially own your home. In the case of our properties, this typically costs up to £300.

     

  • Local search

    The solicitor does this on your behalf. The search is to confirm whether or not any planning applications or development plans have been registered with the local authority that may affect the property you are buying. This could typically be between £100-£150.

  • Bankruptcy search

    This process involves checking your credit rating to see if you have ever been declared bankrupt. If you were, this would affect your application.

  • Engrossment of lease

    This is the fee charged by the landlord’s solicitors for preparing the lease.

More information

For more information about shared ownership, phone us on 01932 235801 or email sales@pahousing.co.uk

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