If you are struggling to save a deposit, or are worried you won’t be able to afford the monthly payments on a new home, Countryside Shared Equity Scheme is designed specifically to help you out by saving you money both when you buy, and over the course of the next ten years.
You are only required to pay 85% of the purchase price of the property, which means that you could soon be moving into your brand new home, but without the cost of a full mortgage. Therefore, not only will you benefit from significantly lower monthly repayments, you will only need a deposit of just 5% to buy, making your move much more affordable.
How it works:
- • Choose your new Countryside home, but pay just 85% of the purchase price.
- • We will lend you the remaining 15% for 10 years interest free.
- • When you sell your home, or after you have lived there for 10 years, you simply return 15% of the current market value to Countryside.
- • Unlike shared ownership schemes, your home is 100% yours from the day you move in.
To purchase with Shared Equity, have a chat with a Countryside Sales Consultant who will be able to start the process. You will be referred to an Independent Financial Advisor who will qualify you to be eligible for the scheme. If you choose to proceed we will invite you to use one of Countryside recommended solicitors.
Your questions answered:
When does the remaining 15% need to be repaid?
You simply pay back 15% of the current market value of your property when you move, or within ten years, whichever is sooner. For the first 10 years you pay no interest on the 15% after this there is a low interest rate fixed at 3% APR of the original amount lent.
Am I able to pay back the 15% without selling my home?
Yes, you can repay the loan at any time throughout the ten year period, subject to a current market valuation.
How is the market value of the property determined?
We take the average of three independent valuations carried out by estate agents.
Does the Shared Equity Scheme allow me to buy to let?
No, this scheme is only available if you will be living in the property yourself.
Will I have to pay anything else?
On repayment of the 15%, you will need to pay solicitors’ and valuation fees. There is also a £500 reservation fee which is refundable on completion.
What happens if I can’t repay the 15% within ten years?
If you experience financial difficulties, we will look carefully at your situation and may decide to extend the loan period for a further five years.
What happens if there is a change in the market value of my home?
When you sell, you will pay back 15% of the current market value, whether this is more or less than the original purchase price.
A typical illustration with Shared Equity: