Our shared purchase scheme allows you to pay 85% of your home now, and the remaining 15% in 10 years time or before, if you sell.
You will own 100% of the property and can repay the 15% 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 pay 85% of the purchase price while we take a second charge on the remaining 15%. The outstanding 15% becomes an interest-free loan, which must be paid back upon you selling the property or upon you having owned the property for 10 years. Hence, you only pay 85% of the purchase price on the property. You get to own 100% of the property and are responsible for 100% of all land burdens, building insurance, etc.
Q) What is the repayment amount at 10 years?
A) The repayment amount is based on 15% of the open market value at that time.
Q) How is this figured arrived at?
A) An independent valuer will be instructed to give an open market value, and repayment is based on 15% of this figure. 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 you?
A) You will pay back 15% of the sale price, in accordance with the information detailed above.
Q) What if the resale price falls below the purchase price?
A) The share repayment will still be based on 15% of the sale price.
Example:
Purchase price £120,000
Loan £96,000 + £18,000 interest-free loan
Selling price above purchase price £140,000
Loan £96,000
You pay to the Company £21,000 (15% of £140,000)
Selling price below purchase price £110,000
Loan £96,000
You pay to the Company £16,500 (15% of £110,000)
Q) How do you, the Company, keep control of the 15% share?
A) The developer will take a second charge on the property for the outstanding/remaining 15%.
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 15%?
A) Yes, as long as the repayment installment is equal to more that ¼ of the outstanding 15% 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 concerning the shared purchase scheme, will be sent from our solicitor directly to your nominated solicitor. This should occur 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.