Running costs
Before you buy
You must have savings or show Peabody that you have access to funds to cover the cost of buying a property, which may include:
- survey and valuation: If the property is not new, Peabody will almost certainly have had it valued, although we do not test any equipment, fixtures and fittings. However, if you are applying for a new mortgage your building society will insist on carrying out their own independent valuation, which you must pay for
- legal fees: You are advised to get a solicitor to help you with buying your share
- deposit: a minimum of £500 to be paid at exchange of contracts. We will accept your reservation fee as your deposit
- stamp duty: Please check with your solicitor whether stamp duty is payable at the time of purchase. You can either pay duty on the full value of the property or, if purchasing less than 80% of the full market value, not at all. Your solicitor should be able to advise you on which option to take.
Once you have bought your home, you will be responsible for running costs, including:
Mortgage payments
You may need to borrow all or part of the costs of your share from a building society or bank. Payments will vary as interest rates change, unless you choose a fixed rate mortgage.
Rent
You will pay a monthly rent for the part of the property you do not own. Peabody uses this rent to pay for part of the cost of the development of these properties. The rent will be reviewed every year. Further information is available in the resident's handbook and will be detailed in your lease.
Council tax
You will have to pay Council Tax to the Local Authority. You may be eligible for a reduction, if, for example, you live alone, or are disabled. Contact the council where you intend to purchase for further information.
Repair, insurance and service charges
If you buy a house, you will be responsible for all repairs and redecoration, both internally and externally. Peabody will insure the structure of your home and you will have to pay a service charge to cover this and help to meet the costs for rent collection.
If you buy a flat, you will be responsible for all internal repairs and redecoration. Peabody will undertake to keep the building in which your flat is situated in good structural repair, to keep the structure insured and to keep any common parts, such as the staircase and corridors, decorated, cleaned and lit. You will have to pay a share of these costs through a service charge. Peabody will tell you how the service charge is spent and you will be consulted before any major repair or maintenance work is started.
Fittings and furniture
You are responsible for supplying your own fittings and furniture and for the cost of insurance for the contents of your home.
