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Shared Ownership costs explained: Rent, service charges and more
How much does Shared Ownership really cost?
From monthly rent and service charges to additional expenses, our guide breaks down the costs of buying a retirement home through Shared Ownership.
When buying a retirement home through Shared Ownership, it's important to understand more than just the purchase price. Knowing what you'll pay upfront and what to expect each month can help you budget with confidence.
Here's how the different costs work, what they cover and what to consider before making your move.
Do I still pay a service charge if I buy through Shared Ownership?
Yes. The service charge is separate from both the price of your share and any rent on the share you don't own.
Buying a 75% share through Older Persons Shared Ownership (OPSO) means you won't pay rent on the remaining 25%, but it doesn't remove the service charge.
Every development has one, and your sales consultant will give you a written breakdown for the exact apartment you're considering.
For a closer look at what's included and how these costs work, visit our dedicated Service charges explained page.
How is Shared Ownership rent calculated?
With Shared Ownership, you can buy between 10% and 75% of your retirement home. The bigger your share, the less rent you pay on the rest.
- If you buy a 75% share, you won't pay rent on the remaining 25%.
- If you buy a smaller share, such as 50%, you'll pay rent on the remaining balance.
To estimate your starting rent, work out 2.75% of the value of the share you don't own, then divide by 12 to calculate the monthly amount. Your consultant will calculate this with you for your specific home. Rent is then reviewed each year using the Consumer Price Index (CPI) for the previous 12 months, plus 1%.
How much does Shared Ownership cost per month?
For illustration, take a one-bedroom apartment priced at £255,000:
- 50% share: You'd pay £127,500 for your share, plus monthly rent of £292.19 on the remaining balance.
- 75% share: You'd pay £191,250 for your share, with no monthly rent.
The service charge is additional in both cases and varies by development. These figures are examples only, not a quote for a currently available apartment.
Ask us for a personalised written cost illustration, including any mortgage repayments, service charges, utilities and buying or resale costs.
Had it not been for OPSO and McCarthy & Stone, our options would have been significantly less. I think this may have left us stuck in a property which was having a negative impact on our wellbeing.
Norman and Moya, homeowners, Elderton Place
The service charge also includes a small contribution to each development's contingency (sinking) fund, which covers longer-term costs such as roof repairs, lift replacement and redecoration of shared areas.
This fund is held in trust for customers and can't be used by McCarthy & Stone for any other purpose.
Around 99% of the services we provide are charged at cost price, with no mark-up. The remainder covers a small management fee for the wider operations and procurement support behind each development, which averages around 1% of the service charge.
Can my costs change over time?
Service charges are agreed annually with customers through an open-book budgeting process and paid in monthly instalments. Costs can change from year to year as the cost of providing services changes.
Before you reserve a home, ask us for:
- The current service charge and what it includes
- How the charge has changed over recent years
- How your development's contingency fund works, including whether contributions are collected monthly, on resale or both
- Whether a contribution to the contingency fund may be due when you sell
If you rent out your retirement home, a separate, smaller contingency contribution also applies. Your sales consultant can explain how this works for your lease.
Are there other costs or savings to be aware of?
Shared Ownership is available to people aged 55 and over, and on average, our customers save around £80,000 compared with buying outright, though actual savings depend on the property and share you choose.
If you buy through Older Persons Shared Ownership, you may also be eligible to claim up to £500 a year towards essential repairs for ten years. This covers items that supply water and electricity, such as basins, baths, toilets and cables, as well as pipes and drainage for heating and hot water, but not fixtures or appliances such as ovens or washing machines.
You can also use our free Entitlement Advice Service to check whether you're eligible for any additional financial support.
How can I check whether it's right for me?
Take your time. Read the lease and key information documents, ask us to explain anything that's unclear, and get independent financial and legal advice.
Many customers find their service charge compares well with the running costs of their previous home, partly thanks to our energy-efficient construction and more manageable property sizes, but it's worth comparing your own figures.
Our team will talk you through the property-specific costs so you can make a decision that suits your finances and plans.