Explain Equity Share scheme.

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Multiple Choice

Explain Equity Share scheme.

An Equity Share scheme helps someone buy a home by bringing in an investor who provides part of the purchase price in exchange for an equity stake in the property. That stake is secured on the home as a second charge, behind the main mortgage. Because part of the price is funded by the investor, the borrower can-afford a property they might not have qualified for with a standard mortgage alone, improving affordability. When the property is sold (or at the end of the arrangement), the investor gets repaid their initial amount plus a share of any growth in value proportional to their equity stake, or as otherwise agreed. The borrower still owns the property and makes their regular mortgage payments, but their ownership share is reduced by the investor’s stake and their return is tied to the property's value changes. This is not a government grant and it does not convert the property into leasehold, nor does it promise no interest charges. The key idea is to enable home ownership by bringing in an equity partner secured by a second charge.

An Equity Share scheme helps someone buy a home by bringing in an investor who provides part of the purchase price in exchange for an equity stake in the property. That stake is secured on the home as a second charge, behind the main mortgage. Because part of the price is funded by the investor, the borrower can-afford a property they might not have qualified for with a standard mortgage alone, improving affordability.

When the property is sold (or at the end of the arrangement), the investor gets repaid their initial amount plus a share of any growth in value proportional to their equity stake, or as otherwise agreed. The borrower still owns the property and makes their regular mortgage payments, but their ownership share is reduced by the investor’s stake and their return is tied to the property's value changes.

This is not a government grant and it does not convert the property into leasehold, nor does it promise no interest charges. The key idea is to enable home ownership by bringing in an equity partner secured by a second charge.

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