Shared ownership - 50/50. Is just a 50% deposit required ?

gemmaking

how does the shared ownership scheme work, in terms of the the deposit/downpayment required? for the mortgage lender ?

eg, a 100% ownership home (normal deal) might require a 20% Deposit, by the lender......from the buyer.


How about in the 50/50 shared ownership scheme?

how is the 'deposit' adjusted, for a shared scheme property purchase?



Lets use the example that the property is worth £120,000 for the 50% shared ownership.

lvm

For a £120k 50/50 property you need to pay £60k. There may be other builder deposit gift thing available but a 10% deposit would be £6k - based on your share, not value of property. Your mortgage would be £54k.

gemmaking

When estate agent show price values of properties...., of shared schemes houses (50/50).

are they showing the full 100% value? or the 50% Value?

eg this is £90,000:

http://www.rightmove.co.uk/property-for-sale/property-35093395.html?premiumA=true

is that the 100% value? or the 50% value ?

Paul_the_Painter

Generally the lower percentage value. So that house would be 180k full price. There are exceptions however, for instance I know of a couple of places where the full price is put up, as the current owner can "staircase" it up to 100%, and in that area shared ownership doesn't sell very well.