Whats the Difference between Shared Ownership and Shared Equity?
Shared equity, sometimes called homestake, is also offered by some housing associations. The basic idea of this scheme is the same – to help people onto the housing ladder – but it works differently: • With a shared equity house you would have to buy a bigger starting share, usually around 80% of the full price of the house. • You don’t pay rent to the housing association on the part they own. They just hang onto it until you sell, and then take their percentage, without charging you anything in the meantime. • You cannot “staircase” your stake until you own the whole of the house – the housing association will always keep a stake in the house. The simplest way to think of it is that shared ownership is a part-buy, part-rent arrangement, whereas shared equity is more like buying a house with a 20% discount. Read on Shared Home Ownership for First Time Buyers Are First-Time Buyers Finally Returning? The Benefits of Shared Property Ownership Is Shared Ownership for You? To purchase a sha
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