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LSDefine

Simple English definitions for legal terms

Shared equity mortgage

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A quick definition of Shared equity mortgage:

Shared equity mortgage: A type of mortgage where the lender owns a part of the house, usually half. This helps people with lower incomes get a mortgage because the lender has more security. When the house is sold, the lender gets their loan back plus their share of the profits. Shared equity mortgages may have rules about who can buy the house and how much it can be sold for later on.

A more thorough explanation:

Shared equity mortgage is a type of mortgage where the lender keeps a portion, normally half, of the equity in the house. This means that when a house is sold, the lender will be paid all of the loan plus their portion of the profits.

Shared equity mortgages are designed to help lower income individuals receive mortgages because the lender has more security by owning part of the property. However, shared equities may come with other requirements like limiting who can purchase the home or limit the sale price later on because shared equity lenders are often trying to limit housing costs for low income individuals.

Let's say you want to buy a house for $200,000 but you only have $20,000 for a down payment. You could get a shared equity mortgage where the lender puts up the other $80,000 for the down payment. In return, the lender would own half of the equity in the house.

Now, let's say you sell the house for $300,000. The lender would get their original $80,000 back plus half of the $100,000 profit, which would be $50,000. You would get the other $170,000.

This type of mortgage can be helpful for people who don't have a lot of money for a down payment but still want to buy a house. It can also be helpful for lenders because they have more security by owning part of the property.

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BulbasaurNoLikeCardio
11:09
Who knew firing thousands of rounds and being next to explosions was bad for our brains
11:09
It is almost like the people doing that used to die fast
11:10
Didnt plan on anyone living long enough lol
11:10
I long to die on a european battlefield
11:10
thats the true white mans burden
11:10
calm down mostly putin
babycat
11:10
yeah fuck gtown btw
LSDFan
11:10
they don't even kick doors. They put C4 in a dip can and tape it to the wall
11:10
I am sure they kick some doors but yes
11:11
@EvolBunny: im a uki
babycat
11:11
terrible admin
BulbasaurNoLikeCardio
11:11
@babycat: I wonder why gtown felt what they said was a good idea and how secure that individual felt in their job to believe there would be no backlash.
Dkk
11:11
please, tell me more about Europa: The Last Battle @MostlyLegal
11:11
nothing you dont already know
Dkk
11:12
Lmfao, damn out of messages again. Time to go sit in the hot tub.
11:12
@BulbasaurNoLikeCardio: honestly fuck these schools
11:12
The way they act is so cringe and gives mad ick
babycat
11:12
@BulbasaurNoLikeCardio: people are saying this has been a pattern with them
babycat
11:12
imagine being a religious school and not supporting mothers. practice what you preach!
11:12
Fuck dem hoes
11:13
Child bearing people*
11:13
i cant spell fuck dont correct me
11:15
Anywayyyyy, i think today i will withdraw all my apps
11:15
This lsat is not doing it
babycat
11:15
lol live ur truth
11:15
ASU at 154 is damn good
11:15
154 scholly
BulbasaurNoLikeCardio
11:15
It is shitty that was a pattern of behavior but I am glad someone is finally standing up for themselves. Like I can be a pretty rigid butthole guy when it comes to getting stuff but a complete lack of empathy or situational awareness shown by the school and their staff is mind blowing. When I was talking about it in the office they all thought I was lying cause it sounds so crazy.
Dkk
11:16
@babycat: ahh link me something. Idk what you are talking about with GTown and mothers and all that.
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