FAQ’s
We have answered many common Joint Equity Scheme questions here, however we might not have covered a specific query of yours. If so, please email us.
Common Resident Partner Queries
Is my investment protected?
Your investment in your home has the same protection as a traditional home purchase and mortgage providing you pay the mortgage amount and the Non Resident Partner Payment on time.
What about moving house?
Joint Equity home ownership does not mean that you’re tied to one location or house. You can move house whenever you wish and Joint Equity can move with you. Remember though that there maybe penalties to pay if you make alterations to your contract (including by moving house) within the first 2 years.
What happens if I need to break my contract if my job moves for example?
Your contract with Joint Equity and the Non Resident Partner has been specially designed to protect you and your Partner, it’s simple and very fair. If you need to move because of personal reasons within 2 years you may incur early redemption penalties.
Are there any restrictions on who can apply?
Almost anyone can apply to become a Joint Equity Resident Partner however, the Joint Equity Scheme might not be the right route for property ownership for everyone (see here for more information). You have to be a UK resident, and you have to be able to pay your proportion of the deposit and your legal fees. Of course you also have to be able to make your monthly payments.
What if I have an adverse credit history?
Updated April 2020
Many people today have what we think of as ‘adverse credit’. Joint Equity understands that this doesn’t necessarily mean you can’t or won’t keep up payments on your home!
We look at each person’s case on their individual merits and the circumstances of how it arose there is no one size fits all approach.
However, as there are different types of adverse credit such as light adverse and heavy adverse we need to know what your problems were and the circumstances.
When completing the RP Enquiry form please be as open and honest about your credit history as possible as it will only come out when we do a deep credit reference search.
We are not judgemental so no need to be embarased or secretive about your financial history.
Remember if we support you, you might have to pay a slightly higher monthly payments for a period.
Are there any restrictions on where I can buy my house?
There are no restrictions on where you can buy your home, we cannot work in Scotland at the moment but we are hoping that will change shortly.
The only thing you need to think about is that, as the Joint Equity scheme ties you in for at least 2 years, you need to be living in the kind of property that you will want to stay in for some time, and it must be in the right location for you – unless you want to pay early-mover penalty fees.
I have been thinking about buying a property with a friend/family member – can I still do this with Joint Equity?
The short answer is ‘Yes, but!’. If the friend is resident in your home you will be ‘joint-owners’ with each other, and with ‘tenants in common’ your Non Resident Partner.
Alternatively if your family member is not resident they will need to complete some forms regarding vacant possession and not reducing our right of repossesion if you do not pay the monthly payments.
We are a couple, and we would like to buy with Joint Equity in both our names. We’re not going to have equal shares though – how would that work?
You can buy through the Joint Equity Scheme. Decide what each equity share is and you are considered as ‘tenants in common’ our conveyancing solicitor will provide the right forms for this and the Joint Equity Partner’s Contract will reflect your Resident Partner Share split. The rest is the normal Joint Equity scheme.
Simple, really!
I still have lots of questions – can I talk to someone about Joint Equity?
You will be surprised at the range of questions we are asked and as long as its not in any regulated area our Partner Managers can usually help with an answer.
We do not operate expensive call centres but you can email your personal Partner Manager, we will usually respond well within 24 hours (our TPF target), or you can write by snail mail if you really want to.
We will shortly be introducing a Live Chat option.
Go to our contacts page to find our details.
However, this site contains a lot of information, and you might want to have a thorough read through what’s available here before emailing your questions to Joint Equity.
Why do I have to use the conveyancing solicitor you nominate?
Our nominated Solicitor is fully qualified and very experienced in Joint Equity purchases. We have extensive key performance indicators and the nominated Legal Partner will ensure you get into your new home as quickly as possible.
The legal costs are shared with your Non Resident Partner and are competitive.
Who organizes buildings insurance?
Joint Equity will arrange buildings insurance through our nominated insurance broker on behalf of the Resident Partner and Non Resident Partner.
You have the option to add contents and other insurances if required.
Your nominated Joint Equity insurance broker will be pleased to discuss the range of insurance options open to you.
If I have to make an insurance claim associated with my Joint Equity home, will all the insurance money come to me?
Yes – if you are making a contents claim.
However, if you are making a buildings insurance claim, there are conditions which require you to carry out all reinstatements or repairs with the money provided.
I like my Non Resident Partner, can I move them with me when I move to another Joint Equity home?
Essentially yes but if the particular fund is closed it may not be possible.
However we will then move you to another fund and you really will not notice any difference.
Common Non Resident Partner Queries TEST
How much can I invest?
There is no upper limit.
What is my minimum investment?
Our current minimum investment is £5,000
How often will the JEIP report on performance?
Each fund (JEIP) will report quarterly on performance of its portfolio using the Halifax Housing Performance Index modified to reflect the composition of the property ownership locations. For example if there are not Greater London properties we exclude Greater London form the index.
How can I get my money out?
The Bonds are for a 25 year period with increasing rates of interest at each 5 year anniversary. We recognise that peoples circumstances change and you may need to cash in some or all of your investment.
There will be a bulletin board secondary market facility where sellers can match themselves with buyers.
What happens if the Resident Partner does not pay the Non Resident Partner Payment?
The contract between the Non Resident Partner and the Resident Partner is clear on the responsibilities of both parties and what happens if there is a breach.
In this case the Resident Partner has a short but reasonable and fair period to get the account back in order. There are a number of additional actions such as a debt for equity swap where the Resident Partner converts debt into additional equity for the Non Resident Partner or the final option is to force a sale of their Share to clear the debts.
Will I be able to inspect my property?
No – the Resident Partner is just that and has all the rights of ownership and you are not a landlord. If Joint Equity feels that a property in the fund portfolio has a problem we can instruct surveyors to inspect and report.
Are you linked to a Regular Savings Scheme?
Not at present but we are working on this with several lenders. Register as an NRP and be one of the first to find out when we do launch.
How can I ask questions about my investment or properties?
You can email the Partner Team with any question regarding the property or the Resident Partner they will also try and answer any questions about the Bond and you can also email the JEIP direct.
The JEIP will report to you with each interim interest payment.
I am aware each fund is only £3.5M and I would like to add to my initial holding can I do that?
Each fund closes at £3.5M and we open additional Funds for additional investments. However, we are aware that some investors may want to increase their holdings in “closed” funds which can be done through the secondary market when other Bond holders wish to sell.
The interest rates increase after each five year period. Can I buy a Bond in funds that have been running for some time to earn the additional interest?
Yes through the secondary market when a Bond holder wants to sell.
If I want to sell all or some of my Bond how will I know the value?
The Bond managers will value the Bonds at each interest period and estimate the accrued terminal bonus earned to date.
This is only an indication and the actual price will be negotiated between the buyer and seller, which will be dependent on a number of factors such as how close are you to a rate rise anniversary, the accrued terminal bonus and the demand for the Bond.