Definitions for "Shared equity"
A method of property purchase in partnership with a builder (vendor) who offers an incentive for the prospective buyer by accepting, say, 95% of the purchase price to be paid on completion and the other 5% to be paid at some stated time in the future. The builder will normally register a second charge on the property until the remaining 5% has been paid. The 5% owing may be on an interest free basis or interest may accrue and be added to the debt. Unlike shared ownership, there is not normally a monthly payment commitment.
a method of property purchase in partnership with a builder which offers a deposit interest free or as a deferred loan as an incentive for you to buy.
A scheme whereby an individual purchases only a percentage of the property and the developer owns the remaining percentage. Rent is paid to the developer on the remaining percentage.
an itemized loan cost based on a percent of a home's value at loan maturity; for example, a 5% shared equity fee on a home worth $200,000 at maturity would be $10,000.
An itemized reverse mortgage cost based on a percent of a home's value at loan maturity.