Frequently asked questions

We have answered many typical Shared Equity UK scheme questions here, however we might not have covered a specific query of yours. If so, please email us at query@sharedequity.uk.com

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Frequently asked Home-Buyer questions.

Frequently asked Investor-Buyer questions

Frequently asked Home-Buyer questions

Is my home investment protected?

Your investment has the same protection as a traditional mortgage providing you pay the mortgage amount and the Investor's Return contributions on time.

What about moving house?

Our Shared Equity UK scheme does not mean that you’re tied to one location or house. You can move house whenever you wish and Shared Equity UK will move with you. Remember though that there are penalties to pay if you make alterations to your contractual agreement within your first two years, this is mainly to protect your Investor-Buyers interests.

Are there any restrictions on who can apply?

Almost anyone can apply to join our Shared Equity UK scheme as a Home-Buyer, however The Scheme might not be right for you. You have to be a UK resident, and you have to be able to pay your proportion of the deposit and your legal fees and closing costs (these can be outlined to you from the outset - by registration and requesting your personal illustration - so you will know approximately the costs involved). You also have to be able to make your repayments.

Can i rent out rooms to help meet repayments?

Yes you can and this could also be taken into account by lenders.

Are there any restrictions on where I can buy my house?

Yes, currently our Shared Equity UK scheme operates within England and Wales, we do have plans to extend The Scheme into the rest of the UK.

What if I have an adverse credit history?

Our approved mortgage advisers shall address each Home-Buyers case on their individual merits. Should you have some adverse credit this does not usually rule you out but you might have to pay a slightly higher interest rate.

It is worth mentioning at this point to, please answer any questions about your credit history as honestly as possible and to the best of your knowledge. Your credit history will only come out when the mortgage broker carries out a credit reference search to satisfy the lender.

What happens if I need to break my contract if my personal circumstances change?

Your contract with your Investor-Buyer has been designed to protect you and your Investors, Co-Buyer's relationship. If your personal circumstances change within two years you may incur penalties.

I have been thinking about buying a property with a friend/family member – can I still do this with Shared Equity UK?

We support anything that makes your property more affordable and enables you to meet your financial obligations. If the friend is resident in your home you will be 'joint-owners' with each other, and with 'tenants in common' your Investor-Buyer.

If for example your family member is not resident, they could become your Shared Equity UK Investor-Buyer!

We are a couple, and we would like to buy with Shared Equity UK in both our names. We’re not going to have equal shares though – how would that work?

Decide what each share is and you are considered as 'tenants in common'. The rest is the normal Shared Equity UK scheme.

I still have lots of questions – can I talk to someone about Shared Equity UK?

Please read through the information contained on our site, should you have any remaining questions about the Shared Equity Uk scheme please email us at query@sharedequity.uk.com or visit Contact Us .

If I have to make an insurance claim associated with my Shared Equity UK 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.

Can I move my Investor-Buyer's investment with me should i decide to move house?

Yes, however the Investor-Buyer does not have to and may decide to leave their investment with your current property or move their investment somewhere else.

Do you have Investor-Buyers ready to invest in the Shared Equity UK scheme?

We have Investor-Buyers registered with us willing and able to invest. Once you decide you might like to buy using Shared Equity UK, return the forms we have sent you together with your commitment fee, we shall then instruct our approved mortgage advisor to call you. Once accepted into The Scheme we shall circulate your purchase area of interest to our Investor-Buyers together with an estimation of your property purchase price and an indication of the Co-Buyers share available.

Once you have the property you want we release the specific property details to the Investor-Buyer and confirm to you that the Investor-Buyer wishes to proceed with the purchase in the Agreed Shares, if not we shall locate another suitable Investor-Buyer for you.

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Frequently asked Investor-Buyer questions

How much can I invest?

There is no upper limit and the percentage of your share you borrow from the mortgage company is up to you.

What is my minimum investment?

Our minimum investment is 10% of your ownership share. In real terms the minimum cash contribution for your part of the deposit and fees is between £8,000 and £10,000. This will buy you a single investment in an average property of £150,000.

How can I get my equity share out?

We encourage you to view this as a medium to long term investment and the Shared Equity UK contract is geared towards this end, protecting you should your Home-Buyer decide to leave The Scheme, however should your personal circumstances change then you can exit from The Scheme when either of the following occurs:

1 : Your Home-Buyer wants to move house.

2 : You sell your investment to another Shared Equity UK Investor-Buyer.

3 : Your Home-Buyer buys your equity share in their home

Can I move my investment with me should my Home-Buyer decide to move house?

Yes, however the Home-Buyer will decide the level of support they require for the next property, this may affect your equity share of the property and subsequently your return on investment.

My Home-Buyer wants to sell but I am not sure now is the right time for me. What can I do?

We shall offer your Home-Buyers equity share of their property to another interested buyer or you have the option to buy your Home-Buyer out rather than sell in the open market.

How is my investment protected?

The property is purchased in joint names of you and the Home-Buyer. There is a first charge for the mortgage company and the contract states that you have the next priority on the jointly owned assets. The Owner comes third in the priority list.

What happens if my Home-Buyer does not pay me my Investor's Return portion?

The contract between you and the Home-Buyer is clear on the responsibilities of both parties and what happens if there is a breach. In this case the Owner has a short but reasonable and fair period to get the account back in order or we can force a sale to clear the debts.

My Home-Buyer and I have a disagreement how can we resolve it?

In this unlikely event Shared Equity UK will try and seek a mutually acceptable resolution. The contract makes adequate provisions should a disagreement arise for resolving any issues that may arise.

Will I be able to inspect my property?

You can ask for a surveyor's report to be carried out and the report sent back to you. Any matters which arise as a result of the survey contractually need to be put right by the Home-Buyer and the surveyor can report back to confirm they have been carried out satisfactory.

It is important to remember that the Home-Buyer has a vested interest in the property as you do, they are much more likely to take care of the property which is a major reason why you may have been interested in investing with our Shared Equity UK scheme as an alternative to Buy-to-Let.

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