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 the property and you pay them a rent on their share. You pay your mortgage lender a monthly repayment for the other share of the property. Not paying either your rent or your mortgage could mean your home is at risk of repossession.
  • Co-Ownership’s equity sharing arrangement means that when you sell your home we both benefit from the value going up or share in the loss if the value goes down. It’s worth remembering that in a normal mortgage all of this risk would be borne by you but in an equity sharing partnership Co-Ownership is sharing that risk.
  • Co-Ownership expects you to maintain your home to at least the standard that it was when you purchased it. Regular maintenance is your responsibility. When you go to buy a bigger share of your home our independent valuer will value it based on it being maintained to the standards it was when it was purchased.
  • 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.
  • 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.