Hi everyone - help needed!
I am looking at buying in the Shared Ownership scheme in London with a good friend.
We are looking at buying 40% of a property valued at £825,000.
I am the only one putting a deposit down of £45,000 - my friend is putting down nothing as he has no real savings (except for fees etc). That means we will need a mortgage of £285,000.
I want to make sure I am doing calculations correctly to agree on the Deed of Trust how much of the property I will own.
I've worked out I will own 56.82% and he will own 43.18% which sounds like he will own a lot of the property for not putting down any capital?
Is this correct or am I overthinking it? I want to work out potential profits as and when it does come to sell to see if it's financially viable.
E.g. if the property was to rise to £900,00 in future, I worked out I would be entitled to £204,552 and he would be entitled to £155,448 with the above %s.
Is there any other way the entitlement would be decided?
Any help will be appreciated!