Equity Share

EquityShare calculator

You need a minimum deposit of around 6.5% (9% for properties of £250K and above). If you leave Deposit blank, the calculator will assume you have 10%.

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Equityshare or shared equity?

Housebuilder shared equity

Most of the big names in housebuilding (think Barratt, Persimmon, Taylor Wimpey, Bellway, etc), offer some kind of a deal on shared equity. This can overcome the problem when mortgages are scarce and you only have a small deposit, by postponing part of the purchase price - say 20% - for up to 10 years, when you will either have to sell or buy out their share at the then market value.

In considering these schemes, you need to appreciate that the housebuilder is in it for money. So:

Things to watch out for

FirstBuy scheme

This has been introduced by the government to encourage first time buyers to dip their toe in the property market. It works by making it easier for housebuilders to offer shared equity, by the government providing part of the funds (and so taking more of the risk). Funding is limited by the constraints on public spending, and could be withdrawn at any time. Our assessment is that the scheme is OK, but (a) it doesn't solve the problem of overpricing, and (b) it is not available for the second hand market. Basically, it's the government cosying up to housebuilders and then being able to boast about the number of houses that are getting built.

Equityshare - what's the difference?

EquityShare is different because it's an open market product. That is, you aren't tied to the product of one housebuilder, but can go out there and bid for any property you like. The great thing about second hand properties is that they tend to find their own market value. For instance, you can easily tell if something is overpriced, because it sits on the market and doesn't sell. And anyway there are hundreds of comparables that you can view on websites like mouseprice or zoopla. Whereas with new developments, you haven't got anything to compare them with and if you ask the housebuilder what others have sold for, they won't tell you (or they'll be a bit selective with the truth). So you can easily be taken for a ride.

Having said that, if you find a decent newbuild and can knock 15% off the price, come to us and we'll do an equityshare deal on it - so you have the best of both worlds! WE DON'T MIND WHERE OR WHAT YOU BUY SO LONG AS IT'S GOOD VALUE.

Check out the deposit you will need with our calculator