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About the Joint Equity Scheme
► How it works
The way the Joint Equity Scheme for shared ownership works is very simple: we offer a part-buy part-rent* scheme for individuals, families or groups of friends who want to buy their own home.
You are not restricted to where or what you can buy like many Government and Housing Association schemes.
The Owner Partner (that's you) chooses any property and purchases between 50% & 75% of the home, and the Joint Equity Investor-Partner buys the rest. The Owner Partner pays an Investment Return on the part they don't own.
You (the Owner Partner) get to treat your home as your own, being able to decorate, improve and otherwise generally maintain it as you wish. Joint Equity can help you with this if you want us to. You can even sub-let a room or two to help cover costs if you like!
► What you get
With The Joint Equity Scheme you share in the capital growth of your home (proportional to your ownership percentage), AND you save money because you probably will be paying out less each month than if you rented the same property from an ordinary landlord.
In our example Joint Equity provides you with an effective interest rate of 12% on your investment each year. (try and get that rate from your bank!)
► How we do it
You’re probably wondering where we get our money?. It’s fairly straight forward: and there are 3 ways we are paid.
Joint Equity recruits the Investment Partners who want to invest in property but don't want all the headaches associated with buy-to-let. The Investor Partners pay us a fee for the introduction.
The Investor Partners pay us a percentage of the Investors Return.
We get a sale fee when the property is sold.
► What our Investors get
Most of our Investor-Partners are also keen to help others as a by-product of their investments. Of course, all investments should make money for the investor, and The Joint Equity Scheme is no exception.
The Investor-Partner shares in the capital growth of the property with you, and the amount you pay in rent goes to them, less a small management charge to us.
In this section:
► A short tie-in period
Joint Equity is able to make this system work because we ask you to stay with us for a minimum of 2 years. This is the minimum amount of time required for the Joint Equity Scheme to be worthwhile for our Investor-Partners.
Consequently, there are penalties to pay should you decide to leave Joint Equity Scheme before 2 years.
However, this doesn't mean you can't move house if you want to - you can just take your Joint Equity mortgage and Investor with you!
* We use the term ‘rent’ and ‘investor return’ interchangeably. What we mean by this is the return that your investor gets for helping you to buy your home. It’s not really a ‘rent’, because you are an owner of the property, and your investor does not have the same rights as a landlord (although both your interests are protected by our partner’s contract).
The Joint Equity Scheme is for first-time buyers, home owners and property investors.
This site is developed and maintained by Joint Equity ltd. ©Joint Equity ( 2007, 2008, 2009, 2010) 2011
Joint Equity Ltd works with City Mortgage Bureau to provide case studies & Illustrations to prospective Owner-Partners & Investor-Partners. Joint Equity Ltd does not carry out any regulated activities and so is not regulated by the FSA (Financial Services Authority). Joint Equity Ltd are introducer appointed representatives of
City Mortgage Bureau Ltd, which are authorised and regulated by the Financial Services Authority.
The content of this website is accurate to the best of our knowledge and for information only. We do not provide financial advice.