Shared Equity

Shared equity purchases are becoming increasingly popular.  This is a way of allowing you onto the property-owning ladder without having to pay the full purchase price.  Typically…

• You buy a proportion of the property, usually 50%.
• You obtain a mortgage, often for the whole of the proportion that you are purchasing.
•  The remaining part of the purchase is effectively treated as rented and you pay monthly rent in the normal way for that proportion of the property.
• The landlord is usually a housing association.
• You have the option of purchasing more of your shared equity and reducing the amount you rent from the landlord.
• Shared equity purchases are always on a leasehold basis but this should not put you off purchasing.
• The lease will specify when and by how much you can increase your ownership.
• When you do increase your ownership you can usually borrow more money to fund the purchase.
• So you increase your ownership when you can afford to do so.
• When you sell a shared ownership property you normally have to offer the property back to the landlord.
• The landlord will not normally want to take it back because it would involve a cash outlay so you then sell the property on the open market or as the lease indicates.
• Shared equity purchasing is reasonably well established. Some solicitors have dealt with it more than others.  Miller Sands has extensive experience over many years of this technique and will be happy to help you.

Fixed Equity

Fixed equity purchasing applies only to a very limited number of houses built in Cambourne, Cambridge in 2001 and 2002.  Julian Landy of Miller Sands has special knowledge of this scheme and can advise.  Call him on 01223 202345 or email: jl@millersands.com