Shared Equity Plan – How Does It Work
Q. What is shared equity?
A. It is a plan which allows you to move into your beautiful new home now for just 75% of the purchase price.
Q. How much does it cost?
A. If the current purchase price of the new-build property is £130,000 and we retain 25% of the equity you will be able to purchase your new home for £105,000.
Q. How much interest will I need to pay on the 25% balance?
A. None whatsoever. We would only retain a 25% equity share in your Property and recover this share when you decide to sell the property or at the end of a 10 year period, whichever is the earlier?
Q. Would I be allowed to buy back the 25% equity at a later date if my circumstances change?
A. Yes of course at any time, prior to the tenth anniversary of your purchase, on which the date the “buy back” will become due to be paid in full.
Q. Does this mean that McTaggart Construction would own a 25% share of my home?
A. No. This is not a shared purchase plan. It is a shared ‘Equity’ plan. You would own your home 100% and we would simply secure our Investment through a second charge on the property which will be postponed to the charge to be granted in favour of your first mortgage lender only.
Q. What is the advantage of shared equity?
A. Put simply, it helps you buy the desired property in the location you’ve always dreamed of but may not have been able to afford previously. Even if you can afford to pay the full price you may prefer not to tie up all your capital in your property so that you have more disposable Income to spend.
Q. How do I find out more?
A. Simply call into our Sales & Marketing Suite and arrange an appointment with our independent mortgage consultant.
Q. What is shared equity?
A. It is a plan which allows you to move into your beautiful new home now for just 75% of the purchase price.
Q. How much does it cost?
A. If the current purchase price of the new-build property is £130,000 and we retain 25% of the equity you will be able to purchase your new home for £105,000.
Q. How much interest will I need to pay on the 25% balance?
A. None whatsoever. We would only retain a 25% equity share in your Property and recover this share when you decide to sell the property or at the end of a 10 year period, whichever is the earlier?
Q. Would I be allowed to buy back the 25% equity at a later date if my circumstances change?
A. Yes of course at any time, prior to the tenth anniversary of your purchase, on which the date the “buy back” will become due to be paid in full.
Q. Does this mean that McTaggart Construction would own a 25% share of my home?
A. No. This is not a shared purchase plan. It is a shared ‘Equity’ plan. You would own your home 100% and we would simply secure our Investment through a second charge on the property which will be postponed to the charge to be granted in favour of your first mortgage lender only.
Q. What is the advantage of shared equity?
A. Put simply, it helps you buy the desired property in the location you’ve always dreamed of but may not have been able to afford previously. Even if you can afford to pay the full price you may prefer not to tie up all your capital in your property so that you have more disposable Income to spend.
Q. How do I find out more?
A. Simply call into our Sales & Marketing Suite and arrange an appointment with our independent mortgage consultant.