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Ownership costs
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Home
Housing
Buy a home
Right to buy
Ownership costs
Buying your own home is a big step and by doing so you will be taking on a big commitment, especially if you are buying a leasehold property. There are many other things you will have to pay for separately.
Mortgage repayments
Unless you are buying your home with cash, you will need a mortgage. This will have to be repaid with interest. If you cannot keep up the repayments on your mortage, your lender may take you to court in order to repossess your property. The Council is not obliged to rehouse you if this happens.
You can find out more about mortages from the
Financial Services Authority
Service charges
Leaseholders are required, under the terms of their lease, to pay service charges to the Council for day-to-day services, maintenance and major works contracts that are carried out on their block or estate. An estimate of these charges will be attached to your landlords offer notice (section 125 notice).
Freeholders may also have to pay service charges for communal shared areas such as pathways and gardens.
What is freehold and leasehold?
Buying out estate charges (optional)
Estate charges are a part of your annual service charge bill. If you own the freehold to your property, you might like to consider buying out your estate charges by making a one off payment.
The benefit of buying out this charge is that you (and any future owner) will have no further liability to pay towards the upkeep of the estate.
Other commitments
There are other regular payments you will have to meet, such as:
Life assurance
Buildings insurance
Contents insurance
Water rates
Repair and maintenance costs
One-off costs
You will have to pay solicitors and surveyors fees when you first buy your home.
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Financial Services Authority