Shared Ownership and Shared Equity are two types of Low-Cost Home Ownership.
Shared Ownership is when you purchase a share of a ‘leasehold’ property (usually between 50 – 75%) and pay rent on the rest.
Meanwhile, properties purchased through the Shared Equity scheme you pay a percentage of the open market value usually 70% and UW provides the remaining 30% via an equity loan, secured as a Second Charge. Your 70% will consist of a deposit and mortgage. You will require a deposit and the minimum is usually 5%. You will own your property 100% outright but are only paying 70% and there are no payments made to UW on its 30%.
Our pages on Shared Equity and Shared Ownership go into more detail on these two buying options. Our video below busts some common myths about Low-Cost Home Ownership.
