The word is spreading about Joint equity and Shared Ownership

the key to your own homeGood to see the word being spread about the Joint Equity model of shared ownership. Read some of our latest press coverage here:

1) ‘I earned £9k by “spotting” an empty home’: How buyers, sellers, investors and even a spotter can win in the property market

17th October, by Laura Shannon, featured in This Is Money and Financial Mail on Sunday

“Help to Buy, the Government’s flagship home ownership scheme, currently allows people to buy a property with just a 5 per cent deposit. But a new scheme from company Joint Equity is being launched tomorrow to give those who rent privately a leg up on to the property ladder.

It is targeting ‘reluctant renters’, retired people who are renting and divorced or separated tenants.”

2) Company kicks off 50-50 home ownership scheme

9th October, byRyan Bembridge, Mortgage Introducer

“Joint Equity Investment LLP said it will cater for reluctant renters, retired renters and divorced & separated renters who are unable to raise a deposit and don’t qualify for local authority or housing association support because they earn too much.”

3) Will Joint Equity be the key for first-time buyers or should they hold out for the Help to Buy Isa?

16th November, The Independent

“Available for homes worth under £250,000, a pilot for Joint Equity has been running over the past five years – and has helped 21 buyers get a home in Bedfordshire, Buckinghamshire and East Anglia.”

4) New home-buying scheme aims to give shared ownership alternative

19th October, by Rozi Jones, Financial Reporter

“Joint Equity is rolling out nationwide a scheme which will allow private renters to purchase a property in a 50/50 partnership with the bondholders through a Joint Equity Investment LLP.”

Read more about the Joint Equity shared ownership offering here Read more

Key questions about the Joint Equity co-ownership scheme

There are key questions about the Joint Equity co-ownership scheme from buyers and mortgage advisers alike. They give you valuable insight into what some of the shared ownership market participants care about – so here are our answers.

“Key questions here for potential buyers are how much of the profits they receive on sale”

50-50 splitYou are a co-owner with us and receive the same proportion as your Share.

50% Share = 50% of the sale profits.

“What interest rate they are paying on their portion of the loan.”

The interest rate you pay is the interest rate your mortgage lender offers. You can shop around and are free to go with any lender who will support Joint Equity co-ownership.

“What happens if and when I want to sell?”

When you want to sell you must offer your Share to us first and we have advice 21 days to say if we will:-

  • Buy your Share
  • Sell our Share with you at the same time.
  • Or do neither and you are free to sell your Share to a new incoming Joint Equity Resident Partner. (it’s like selling a normal house and we assist your estate agent)

“What happens if the property falls in value or falls into negative equity?”

It’s the same as owning 100% of your house. If you are in negative equity and keep paying the mortgage and Non Resident Partner payment there is no impact. If you need to sell your Share for any reason you will get market value.

“We would always advise clients to try and obtain a larger deposit through collecting funds from family who can release equity from their own properties, or guarantor schemes, or even buying with friends. Entering a partnership with a commercial organisation will always come with risks that are usually not as flexible to negotiate with as friends/family or other less commercially minded sources of funding for your first home.”

This is the usual advice given to buyers however our Resident Partners often don’t have parents or family in a position to help.

The other thing our Resident Partners tell us that, contrary to this view, it is better to go with Joint Equity as we have clear rules in the Partners Contract and our Resident Partners know what they can expect from us.

Do let us know if you have any other questions that we don’t yet answer in our FAQ.