A property investment firm has launched an alternative to private renting for those who cannot afford to buy a home outright. .
A property investment firm has launched an alternative to private renting for those who cannot afford to buy a home outright.
Joint Equity said its scheme will allow renters to purchase a property in a 50/50 partnership with bondholders through its Joint Equity Investment LLP (JEIP).
The scheme is available to help people buy homes under £250,000, and the home buyer will need to have a minimum 5% deposit to be able to afford a maximum 45% LTV mortgage to qualify, with JEIP providing the rest of the purchase price.
Brad Bamfield, CEO of Joint Equity, said he aims to help people who couldn’t otherwise afford to buy a home to do so.
“Having spent 40-years as successful property developers and financiers we wanted to give something back,” said Brad.
“Our goal is to help those unable to get onto the housing ladder, to do so in a way that still enables them to choose the home they live in, and gives them the flexibility to remain in it for as long as they choose and sell it when they want.”
Home buyers will pay the mortgage and an interest charge for the 50% JEIP funding, while Joint Equity will provide access to a mortgage from its panel of providers as well as covering 50% of the conveyancing and survey costs.
The bond is managed by an FCA regulated and authorised company, Ingman Capital Partners, while the home buyer see an independent mortgage adviser who will explore all the options with them.
The Joint Equity plan will limit the total price home buyers pay for a house under the scheme to no more than £100 per month more than they currently pay for their private rental costs.
“There are many people now caught in the private rental trap and who want to buy their own home but can’t afford to, and that’s where we come in,” said Brad.
“We have more than 1,000 resident-partners who want to join the Joint Equity scheme and we believe the coupon available will be highly attractive to investors, and that the escalating nature of the coupon combined with the terminal bonus will create a vibrant secondary market for bond-holders.”