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Shared Equity for Dummies... i.e. me!
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Can anyone give me a simple understanding of shared equity, please?
That's all really :-)
That's all really :-)
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eg. A house is worth £100,000. You have a deposit and take out a mortgage to buy 50% of the house. The owner retains the other 50% and charges you a rent on his half. You then have two options. When you can afford it, you buy the other half, or, when you decide to move and the house is sold (or your half is sold) you get the proceeds to use as a deposit on your nexr house.
The idea is to give people with little or no deposit a chance to get on the housing ladder. They only need 50% of the normally expected deposit to raise the 50% mortgage. And yes, the other half is rented to you.
The idea doesn't sit right with me either. If you can afford to pay a mortgage + rent, surely you can afford the mortgage on the full amount.
The idea doesn't sit right with me either. If you can afford to pay a mortgage + rent, surely you can afford the mortgage on the full amount.
yes but the mortgage is less. You might not be able to get a mortgage for the whole value of the house so its a way of getting on the property ladder.
The organisations who do shared equity are usually housing associations so they aren't looking to make much profit from the arrangement.
this Santander info looks good.
http://
The organisations who do shared equity are usually housing associations so they aren't looking to make much profit from the arrangement.
this Santander info looks good.
http://
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