FAQs
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?
Currently, most lenders that operate
this scheme will allow you to borrow 95% of the 75% loan amount,
thus a smaller 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 ΒΌ 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.