What is Shared Equity?

This is a Scheme where you will pay 75% of the purchase price of a new home with Westpoint taking a second charge on the outstanding balance (i.e., 25%). The balance becomes an interest free loan which is required to be paid by the purchaser to Westpoint no later than 10 years (or such other date as may be agreed between Westpoint and the purchaser at the time of reservation) from the date of entry or earlier in the event that the property is sold (or otherwise transferred) to another party. You will own 100% of the property and will be responsible for 100% of all land burdens, buildings insurance etc.

What is the amount of the repayment after 10 years?

The amount of the repayment is based on the 25% balance outstanding and it will be calculated on the then current Open Market Value. A surveyor will be appointed jointly to establish the open market value of the property at such future date as may be applicable, with Westpoint and the purchaser paying an equal share of the costs of this valuation.

How is this figure arrived at?

An independent valuer (jointly appointed) will be instructed to give an Open Market Value and repayment would be based on this valuation figure. In the event of the property being sold and the sales price achieved is in excess or lower than the then open market value, the figure due to Westpoint will be based only on the then open market value (and not on the sales price achieved as the open market value may be + or - the open market value figure which shall always take precedence). In the event that improvements are made by you post purchase, these will be disregarded for the purposes of ascertaining the then current open market value whether they add to or reduce that value.

How do Westpoint Homes keep control of their equity 25% share?

We will take a second charge on the property for our equity 25% share.

Must I use one of your Panel Approved Mortgage Brokers to qualify for this scheme?

Yes, to qualify for this service you must use one of our Panel Approved Mortgage Brokers.

Will I need a deposit to secure the mortgage?

Most lenders that operate this scheme will allow you to borrow 100% of the 75% loan amount, thus no deposit is likely to fall due.

Can I make partial repayments towards the balance due to Westpoint?

Yes, a repayment plan can be agreed with Westpoint but each re-payment must be equal to or more than ¼ of Westpoint's equity 25% interest in the property. So in other words, you are not permitted to make re-payments on an ad-hoc or unplanned basis throughout the period you reside in the property, principally because this would result in a surveyor having to be appointed each time to determine the open market value of the property each and every time you elect to make a part payment towards the 25% balance owed to Westpoint.

If I decide to purchase, what am I required to do?

You are required to complete a reservation form. The contract pertaining to the purchase along with a separate deed relating to the shared equity scheme will be sent direct from our solicitor to your solicitor. This should happen within 14 days.

How does shared equity affect my mortgage?

Certain transactions/changes that you may wish to make on your mortgage may require Westpoint's consent as second charge holders e.g. further advance, change in title etc.