Shared Equity
Shared Equity ...
Shared equity ownership of a property in the UK is fast becoming a popular route for first-time buyers.
The current situation on finance, credit and mortgages has led to an increased interest across the country on shared property ownership and a decline in investment property buyers. This, coupled with keener pricing from both national housebuilders and private vendors, has highlighted Government-led incentives for key workers to buy on a shared basis. However in many cases these incentives will not apply to many first time buyers.
At Equity Track, we are now offering shared equity opportunities to all members of the community, subject to their satisfactory financial status. The basic criteria for this scheme are as follows.
Shared Equity Mortgages are currently available from various lenders, and the maximum loan amount varies from 75% top 85% Loan-to-Value (LTV). This means that a property valued at £200,000 could be subject to a mortgage offer from £150,000 (75% LTV) to £170,000 (85% LTV). If the mortgagee cannot find the balance in cash to complete the purchase, then this balance can be considered from a co-buyer i.e. 15% to 25% of the value.
This sum would be legally used to complete a shared equity ownership and this would be subject to a term during which the co-buyer will sell to the other in portions of 5% equity at the current value at the time. However, at the start of ownership, the whole 100% of the property is registered at The Land Registry in the mortgagees’ name – making shared equity ownership a totally safe way of starting on the home-ownership ladder.
