The Joint Equity Scheme is for first-time buyers, home owners and property investors.
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How the Joint Equity sale process works
u Comparison between Joint Equity & Traditional Sales?
Flat A is valued at £125,000
u Traditional sale method
The Buyer buys 100% of the equity £125,000
Income to Vendor £125,000
However, the buyer needs :
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a deposit and fees of £8,500 and
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a salary of at least £29,687 for the mortgage.
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They may not have either or both.
u Joint Equity sale method
The Buyer: 50% equity £65,000
Investor-Partner: 50% equity £65,000
The total sale income is still £125,000
– the same as traditional sale.
But, with JointEquity the buyer (the Owner Partner) only needs:
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a deposit and fees of £7,400,
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and a salary of only £14,625.
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This is a :
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13% saving on deposit and fees
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50% lower salary requirement
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This simple comparison demonstrates how the Vendor can make their property financially attractive and available to the widest possible audience, as well as how the social affordability criteria are achieved.
