What is Equity Sharing?

When you join Co-Ownership your solicitor will talk you through the signing of the Equity Sharing Lease.

It’s really important that you take time to understand this and what it means. This is called an Equity Sharing Lease and it is the agreement between you and Co-Ownership. It outlines what you can expect from Co-Ownership and what Co-Ownership expects from you.

It’s really important that you take time to understand this and what it means.

What do you need to know

• Co-Ownership buys a share of your chosen property which you pay rent on. You pay your mortgage lender a monthly repayment for your share of the property. If you miss payments on either your rent or your mortgage your home could be at risk of repossession.
• Our shared ownership arrangement means that when you sell or buy a greater share of your home we both benefit from the value going up or share in the loss if the value goes down. We share the risk.
• We expect you to maintain your home to at least the standard that it was when you bought it. When you buy a bigger share of your home it will be valued based on it being maintained to this standard.
• It’s your home so put your own stamp on it. You only need to contact us if you are thinking of making a structural change such as building a garage or an extension.
• If you are changing your lender or are making changes to your mortgage, please let us know.
• Co-Ownership is a not for profit organisation and a registered housing association and charity which means the proceeds received from the sale of your home will be recycled to help other people achieve home ownership.
• We hope that you will be able to buy Co-Ownership’s share of your home as soon as you are able. When house prices are rising doing this will reduce the amount owing to Co-Ownership and the amount of rent you will have to pay. We can talk you through how to go about Buying Out.