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Protection for the Investment within the Joint Equity Scheme

 The Partners Contract protects you in other ways;

Imagine the scenario where the market has dropped and the value of the property is now below the purchase price but the Owner Partner believes it will rise again. They give notice to staircase & buy part of the the Investor Partner’s share. The Owner-Partner is limited to a maximum ownership of 75%. Higher than that they must offer to buy out the Investor who does not have to agree.

1 They can force a sale up to 75% but must pay 6% pa compound growth if the value is lower than this.

2 They can not do a deal with a friend to buy the Investor Partner’s share at an artificially low price. The sale must be at current market price or a minimum growth of 6%pa since purchase which ever is the greater.

The Owner Partners usually move within 3 to 5 years however, where they do not want to move and are happy where they are the Partners Contract provides a process that will protect both Partners  

More details on the Partners Contract will be provided when you register as a Partner.

 What safeguards have I got with Joint Equity?

The first thing is that you are a co-owner of the property with your name on the deeds, the mortgage and your interest is registered at the land Registry.

We have designed the Joint equity Partners Contract to protect all parties and covers what happens if;

• the Owner Partner defaults on the investment return or mortgage (the Investor can repossess the property)
• the Investor Partners defaults on mortgage (the Owner can repossess the property)
• the Owner Partner dies
• the Investor Partner dies
• the Owner Partner fails to maintain the property
• the Owner Partner wants to extend or improve the property

The Owner-Partner and Investor-Partner must both have independent legal advice before they can apply for the mortgage. This protects both Partners and Joint Equity from any future problems where one Partner says they did not understand what they were signing.