Low Cost/Shared Equity
If you cannot afford a property at full market value, you may be entitled to a home through the Low Cost Home ownership scheme or the Broadgate Homes Shared Equity Scheme.
Low Cost
Low Cost homes are a way of purchasing an affordable home if you are in local housing need. You are the legal owner of 100% of your home, but only need to purchase the property at a percentage of full market value. The percentage varies depending on the property, but typically sits at around 80%. Your only repayments are your regular mortgage repayments, there is no additional loan.
Shared equity
If you can't quite afford the mortgage on 100 percent of a home, The Broadgate Homes Shared Equity product offers you the chance to have a mortgage for less than the full purchase price of the property, whilst becoming the legal owner of 100 percent of your home through an equity loan. The loan can be between 25 and 50 percent of the value of the property.
How shared equity works
You purchase a property with a mortgage of 50 to 75 percent and an equity loan makes up the difference. Interest on the equity loan is charged at the Bank of England base rate and is collected on a monthly basis by direct debit.
The equity share of the property is not revalued at any point during the term of your ownership.
Low Cost/Shared Equity Eligibility
You may be eligible for either product, if you:
- lack your own housing or live in housing which is inadequate or unsuitable to meet your existing or future requirements
- are living in affordable/social rented housing and wish to own your own home
- can't afford to buy on the open market
- have a local connection to the South Holland District.
Apply for shared equity
We assess all shared equity applications. To apply, please download and complete the Low Cost Market Housing / Shared Equity Housing application form and return it to hadmin@sholland.gov.uk.