Don’t be afraid to look into shared equity

Shared equity in the UK is on the increase following the introduction of HomeBuy Direct, a government led scheme to help more first time buyers onto the property ladder.  But do buyers understand what this means for them? 

One Bloor Homes purchaser Darek Jozwiak explains why he chose to purchase a new home through a similar scheme ‘BloorHomeStart2’ at Cranfield Gardens in Cranfield, Bedfordshire.

Darek, an IT consultant in Northampton had recently separated from his family and was looking for a new home where his two children could stay with him at weekends.  Darek comments: “Purchasing a property on my own was something I never expected to do and I wasn’t sure how I was going to be able to afford the type of property that I wanted for the kids.  I had heard about shared equity and various other schemes that help you onto the property ladder but wasn’t sure if I would qualify.

“When I visited Cranfield Gardens I initially picked out a two bedroom home as it fitted within my budget.  However, after speaking with Bloor Homes they helped me secure a three bedroom home by using their BloorHomeStart2 scheme where I only needed to finance 85% of the property’s value to begin with.  I was so pleased as I wanted my son and daughter to have their own bedrooms when they come to stay.  Furthermore, Bloor also entered me into a prize draw to win a furniture package and I won it!  I really couldn’t have asked for more as I have gone from worrying about not having a new home to having a beautiful three bedroom house that didn’t cost me a fortune, plus all the furniture to go in it!”

First time buyers looking for a step onto the property ladder may be interested in the shared equity scheme where they only need to finance 85% of the property’s value.  The remaining 15% is to be paid back at market value up to 10 years later or upon selling the property, whichever event comes first. Unlike many part-ownership schemes, there is no additional interest on the loan or rent payable on the 15% equity for 10 years.           

The village of Cranfield is located about 6 miles east of Milton Keynes in west Bedfordshire. It offers a range of shops, supermarkets, public houses and restaurants as well as fantastic views of the surrounding farmland.

Of the remaining three homes available at Cranfield Gardens there is a one bedroom home, two bedroom apartment and four bedroom home.  Prices start from £127,500, 85% of the current market price for the remaining one bedroom home.

For further information on the development visit bloor-homes.com.