Have you considered shared equity to buy your first home?
PUBLISHED: 10:16 07 May 2018 | UPDATED: 10:26 07 May 2018
Struggling to get on the property ladder? Have you considered shared equity? Edward Parker, from Bennett Homes, discusses.
Recent reports have highlighted that fewer 25-34 year olds are able to afford to buy their own homes and as a result will be forced to rent long-term. But there are other ways to get on the property ladder.
There are a number of reasons for this ‘rental generation’ as it has been termed, including high property prices, the difficulty in saving for a deposit whilst renting and not being able to secure an affordable mortgage deal.
But it’s worth looking around at other options on offer which may help to make the move, such as equity share. So what does it mean?
Purchasing your new home on an equity share basis means that buyers fully own their own homes by taking out a mortgage covering 75 per cent of the property value and then have the opportunity to buy the remaining 25 per cent equity share at current market value after five years.
No rent is payable on the 25 per cent equity share which will be retained through a legal charge, held by a third party on an interest free basis.
As a company we are currently offering this opportunity on our Saxon Green development at Ashill which means that buyers can purchase a two bedroom apartment which includes a shared rear garden and two allocated parking spaces, as well as a range of features included in the price such as high performance double glazing, hood, gas hob and a single electric oven, efficient gas central heating and spotlights in the kitchen and bathroom. The property is also covered by the NHBC ten-year Buildmark Warranty.
We will also be extending equity share to other developments in our portfolio very shortly – The Signals at Watton and Woodlands at Old Costessey – where a wider range of properties will be on offer.
As with all schemes, eligibility requirements apply and the offer is limited to those on a joint income of £80,000 or less. Buyers are invited to make an application after talking to one of our Home Advisers who will be able to talk them through the details.
You can see www.bennett-homes.co.uk or 01284 766057.
Bennett Homes has sponsored this column.
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