Our shared purchase scheme allows you to pay 80% of your home now and pay the remaining 20% in 10 years time or before, if you sell.
You will own 100% of the property and you can repay the 20% earlier if you wish. With our help, you can now move up the property ladder quicker than you ever thought possible. Ask our sales executive for full details.
Frequently Asked Questions
Q) What is Shared Purchase?
A) With the shared purchase scheme you will pay 80% of the purchase price with Ben Bailey taking a second charge on the remaining 20%. The 20% becomes an interest free loan which is required to be repaid on you selling the property or upon you having owned the property for 10 years. Therefore you only pay 80% of the price to purchase the property. You will own 100% of the property and will be responsible for 100% of all land burdens, buildings insurance etc.
Q) What is the amount of the repayment at 10 years?
A) The amount of the repayment is based on 20% of the open market value at that time.
Q) How is this figure arrived at?
A) An Independent Valuer will be instructed to give an open market value and repayment would be based on 20% of this. The cost of any improvements made by you since purchase will be deducted from the valuation figure.
Q) If I sell my property within the 10 year period how much do I pay back to Ben Bailey?
A) You will pay back 20% of the sale price in accordance with the information above.
Q) What if the resale price falls below purchase price?
A) The share repayment will still be based on 20% of the sale price.
Example:
Purchase price £120,000
Loan £90,000 + £24,000 interest free loan
Selling price above purchase price £140,000
Loan £90,000
You pay to Ben Bailey £28,000 (20% of £140,000)
Selling price below purchase price £110,000
Loan £90,000
You pay to Ben Bailey £22,000 (20% of £110,000)
Q) How do you (Ben Bailey) keep control of the 20% share?
A) The Developer will take a second charge on the property for the 20%.
Q) Must I use one of your panel approved Mortgage Brokers to qualify for this scheme?
A) Yes, to qualify for this service you must use one of our panel approved Mortgage Brokers.
Q) Do I need a deposit?
A) Yes you will require a 5% deposit.
Q) Can I pay back part of the 20%?
A) Yes, as long as the repayment installment is equal to or more than ¼ of the outstanding 20% interest free loan. This will be based on the overall independent valuation at that time.
Q) If I decide to purchase, what am I required to do?
A) You are required to complete a reservation form. The contract pertaining to the purchase along with a separate deed relating to the shared purchase scheme will be sent direct from our Solicitor to your nominated Solicitor. This should happen within 14 to 21 days.
Q) Does this affect my mortgage?
A) Your mortgage on this purchase is separate and is between you and your lender. Certain transactions/changes that you may wish to make on your mortgage may require our consent as second charge holders e.g. further advance, change in title etc.
This offer is available on selected plots at selected developments only. To find out if this scheme is available please contact the Sales Executive at your development.