Buying a Heritage Affordable Shared Equity Home
Shared Equity Housing works by the Developer (in this case Heritage) providing the homebuyer with an interest free loan that will form part of the Deposit you need to pay for the property you are looking to buy. The Shared Equity Loan provided by Heritage is for 20% of the Open Market Value and is provided on behalf of the Local Council to whom you will owe the balance of the Shared Equity until it is repaid under the terms of the S106 Agreement.
But if you stay living in the home during the first 5 years, for every year you stay, you will automatically receive 4% of the remaining 20% Equity Loan per annum at no further cost to you, until after 5 years you will own 100% of the equity in your home outright and will no longer have to repay any of the Shared Equity Loan!
You will need to provide a minimum of 5% of the Open Market Value as cash deposit and you can then borrow up to 75% of the Open Market Value from one of three main-stream mortgage lenders who have approved the scheme, (subject of course to your earnings being sufficient to borrow the sum you require.
In order to benefit from this scheme you must be a SPECIFIED ELIGIBLE BUYER.
Selling during the first 5 years
If you sell the property within five years, any outstanding portion of the Shared Equity that you have not acquired must be repaid to the Local Council in full out of the sale proceeds.
The price you will pay for the balance of outstanding Shared Equity will be based on the percentage of Shared Equity that you owe when you choose to repay it and the Market Value of the property at that time. The Market Value may be higher or lower than the value at the time you initially purchased.
The balance of the Shared Equity owed to the council may be secured by a second charge on your property, but otherwise the Shared Equity balance owed to the Council is secured by the terms of the S106 Agreement on the property.
There is no interest charged on the Shared Equity owed to the Local Council, nor is there any time limit during the first 5 years for repayment of any outstanding sum until you sell the property. Once you have acquired 100% of the Equity in your home, the property will be free of all Affordable Housing restrictions.
Who is Eligible?
You must be a “Specified Eligible Person”
- You must either be a First Time Buyer, or do NOT currently own your own home
- Your Household income must be LESS than £80,000
- You must have access to a minimum of 5% of the Open Market Value as a cash deposit
- You must not be a Buy-to-Let investor
- You must either qualify as a First Time Buyer under National guidelines OR you must Register on the Register of Applicants maintained by the Help to Buy ZONE AGENT for Shared Ownership/Equity (NOT the National Help to Buy Equity Loan scheme).
- You must answer some basic financial criteria with Heritage Homes Consultant and then pass a Financial Assessment undertaken by the Independent Financial Advisor (IFA) approved by the HTB Zone Agent for this scheme who will arrange the Shared Equity Mortgage for you with one of the mainstream mortgage lenders who have specifically approved this scheme. (Please note that this scheme is not available through other brokers of direct from the “High Street”.)
- There may be other “local connection” eligibility criteria which may vary from site to site, (please ask for details).
For full scheme details and any criteria on a specific site, please contact Heritage.
What is shared equity housing?
If you are a First Time Buyer, or even if you have previously owned a home but do not currently own one, then you could be eligible to buy a stunning high-quality family home using Heritage Shared Equity Scheme at just 80% of it’s Open Market Value!
If you are eligible for this scheme, once you have bought your new Heritage Home at 80% of it’s Market Value, every year you stay living in the home you will automatically receive 4% of the remaining 20% Equity Loan at no further cost to you, until after 5 years you will own 100% of the equity in your home outright!
Too good to be true? … There is no catch!
This scheme is an approved Affordable Housing scheme designed specifically to help people get started on owning their own family home where they would otherwise not be able to afford to do so and where deposit funds are limited.
What is Shared Equity Housing?
Shared Equity Housing works by the Developer (in this case Heritage) providing the homebuyer with an interest free loan that will form part of the Deposit you need to pay for the property you are looking to buy. The Shared Equity Loan is for 20% of the Open Market Value, you will need to provide a minimum of 5% cash deposit and you then borrow up to 75% of the Open Market Value from one of three main-stream mortgage lenders who have approved the scheme, (subject of course to your earnings being sufficient to borrow the sum you require.
Who is Eligible?
You must be a “Specified Eligible Person”
- You must either be a First Time Buyer or do NOT currently own your own home
- Your Household income must be LESS than £80,000
- You must have access to a minimum of 5% of the Open Market Value as a cash deposit
- You must not be a Buy-to-Let investor
- You must either qualify as a First Time Buyer under National guidelines OR you must Register on the Register of Applicants maintained by the Help to Buy ZONE AGENT for Shared Ownership/Equity (NOT the National Help to Buy Equity Loan scheme).
- You must answer some basic financial criteria with Heritage Homes Consultant and then pass a Financial Assessment undertaken by the Independent Financial Advisor (IFA) approved by the HTB Zone Agent for this scheme who will arrange the Shared Equity Mortgage for you with one of the mainstream mortgage lenders who have specifically approved this scheme. (Please note that this scheme is not available through other brokers of direct from the “High Street”.)
- There may be other “local connection” eligibility criteria that may vary from site to site, (please ask for details).
For full scheme details and any criteria on a specific site, please contact Heritage.
Award Winning Homes
The Chase has won Development of the Year, adding to our collection of national awards.
