What is shared equity?
The shared equity scheme is a low cost home ownership initiative to help people, usually first time buyers, purchase a home.
You can be part of this scheme if you are unable to buy a property outright and can meet the status requirements of mortgage providers.
Priority will be given to buyers who are:
- Key workers
- First time buyers
- Housing association tenants
- Local authority tenants
- Currently on a local authority/housing association waiting list
- Nominated to Tees Valley Housing by a local authority
The scheme is not open to investors or anyone buying with a view to renting the property out.
Existing home owners may be considered depending on their circumstances.
How does shared equity work?
Shared equity allows you to buy the property outright, but you pay only 75% of the market value. When the property is sold, you receive 75% of the sale price and Tees Valley Housing receives 25%.
No rent is payable to TVH but you are responsible for all outgoings and repair costs. If the property is a flat, you will also be responsible for paying service charges. Flats are sold on a leasehold basis and full details of the service charges will be included in the lease.