Equity Share
Developers
Most housebuilders now offer shared equity as a way of shifting their stock.
The usual discounts, ranging from gifted deposit through to payment of stamp duty and legal fees, are instead recycled into a 10-year deferred purchase of the top 25% of the price (with some PLCs, call that 15%). On this basis, you drop the other discounts and shared equity becomes your main story.
The sales tagline "Become 100% owner for 75% of the price" is however misleading. Care needs to be taken to get it right and not offend mortgage lenders. However, proof that it works is shown by the fact that the government has marketed its own form of shared equity through Homebuy Direct.
From a commercial point of view, you are forgoing valuable working capital in return for a play on HPI. In reality, you are becoming an investor in your own stock, moving away from pure trading to become an asset manager. This may lead you to reconsider your direction as a company. We can design bespoke schemes for you on request.
Alternatively, you may prefer to buy into the main EquityShare idea, whereby a serendipitous conjunction of builders and investors frees up your working capital and ticks the box with the bank. Contact us for a free consultation.