A step-by-step guide to buying through the Equity Sharing Scheme
Updated: 10 Mar 2014
Once we receive a completed application form from you, we will check the eligibility of the application.
We will arrange for the property to be valued by an independent valuer. The independent valuer will aim to complete the valuation within three weeks.
Once the valuation is complete, you will be sent a letter containing:
- the market value of the property
- any discount entitlement
- the historic cost (where appropriate)
- an *estimate of differing housing costs under equity sharing
*The estimate is based upon the full rent before any Housing Benefit deductions.
The mortgage is at an interest rate typical of a High Street mortgage provider based upon a 25 year repayment mortgage. Banks and building societies may offer different rates.
You will then have 4 weeks to respond to this letter and tell us:
- if you want to go ahead with the application
- if you want to buy the property outright
- the level of equity you want to buy - you can still change your mind about the level of equity you want to buy at this stage
- if you want to have the market value of the dwelling reassessed or re-determined by Land and Property Services
If you are happy to go ahead with the application, we will send an offer to buy all or part of the property. You will have 6 weeks to respond.
At this stage you can still let us know if you have changed your mind, or if you want to increase or decrease the level of equity you want to buy.
If you accept the offer, we will then draw up a contract of sale. You will need to appoint a solicitor at this stage and give us their details.
If you tell us that you want to change the amount of equity you want to buy, you will be posted an amended offer. You have 3 weeks to respond to this amended offer. At this stage you must either go ahead with the amended application, or cancel the application.
When you accept the amended offer, we will draw up a contract of sale. If you have not already done so, you will need to appoint a solicitor at this stage and give us their details.