Shared Equity Swindon

If you are struggling to afford the home you need, it could be a lot easier to buy than you think. We have a number of both Government and Developer schemes available which could help you to own 100% of your new home, without paying 100% of the purchase price. In some cases, you could own 100% of your home but pay as little as 50% of the price now. Shared Equity is the basis for the governments HomeBuy Direct scheme and many of the developers own schemes. Homebuy Direct is due to finish on 30th September 2010.

Shared Equity means that you buy a given equity share in a property with the aid of a mortgage – for example 75%; however, while the developer and/or Government own the remaining share you do not pay rent on it. When the property is eventually sold the developer and/or Government will be entitled to receive their share of the value (equity) of the property. For example, if a property was originally purchased for £200,000 and you initially raised a loan for £150,000 (therefore having a 75% share) then the developer and/or Government would own a 25% of the value of the property. Sometime later, when you wish to sell, and the property was now worth, for example £250,000, then you would receive £187,500 (75%) of the sale price, and the developer and/or Government would be entitled to receive the remaining £62,500 (25%).

What is the Difference between Shared Equity and Shared Ownership? The main difference is that with Shared Equity you buy a given equity share in a property but do not pay rent on the remaining share; however, with Shared Ownership you pay rent on the equity share that you don’t retain.

The schemes are designed to help First-Time Buyers and people who have previously owned properties but are now unable to buy without assistance, for example in the case of relationship breakdowns or families who are over-crowded in their existing homes.

Shared Equity schemes are open to key workers, first time buyers and other selected buyers depending on the specific schemes criteria. Interestingly, despite the terminology the equity is not shared and the owner does not initially share the equity with any other body but does obtain financing from various quarters! When he comes to sell however, he does have to forfeit some of his equity that he has in the property.

With many different schemes available; details vary depending on which new home you choose, so come and talk to us and see how we can help you to afford more in Swindon and Wiltshire today.