At Merlion we understand the many challenges facing today’s home buyers and we have worked hard to devise a realistic solution that truly provides you with an affordable and sustainable option to buying your new homes.
Our shared equity model provides a much more affordable route into home ownership than many of the other shared equity products on the market. What’s more, we are widely recognised for providing an exemplary level of customer service – we will support you every step of the way through your purchase and we are here day and night to answer any questions you may have.
We currently have a number of homes available across the UK – with more being added all the time. If you would be interested in purchasing a home through Merlion and you would like to be kept up to date with any new schemes as they become available, please register your details.
What is shared equity?
Shared equity works by providing the home buyer with a loan, which will form part of the deposit, for the property they want to purchase. The homebuyer then takes out a mortgage, as they usually would, on the remaining portion of the property’s value.
The property will belong entirely to the homebuyer. The shared equity element relates to the fact that the homebuyer is taking out an equity loan, which counts towards their deposit. Having this bigger deposit can enable the homebuyer to get access to cheaper mortgage deals, which they otherwise would not be able to qualify for.
Merlion Housing Association Limited Eligibility Questionnaire
Shared Equity FAQs
Shared Equity is an affordable housing scheme that allows eligible buyers to purchase a property at a discount to the market value. The discount is typically between 25% and 50%, which is covered by an equity loan held by Merlion Housing Association.
Our Scheme offers an affordable way to take your first or next step onto the property ladder. You will purchase the freehold or long leasehold of the property at 50-75% of open market value. The equity will be held by Merlion by way of an equity loan but unlike traditional shared equity or shared ownership schemes, we do not charge any rent or interest on this balance.
There is no obligation to purchase the remaining share at any point in the future. You can fund your purchase with a standard mortgage, and because there are no additional payments on the retained share, your only ongoing costs are your mortgage payments and normal household expenses.
MHA utilises the same Government eligibility criteria as shared ownership which is summarised below detailed below: (Link to .gov?)
· Your household income is £80,000 a year or less (£90,000 a year or less in London)
· You cannot afford all the deposit and mortgage payments for a home that meets your needs
One of the following must also be true:
· You’re a first-time buyer
· You used to own a home but cannot afford to buy one now
· You’re forming a new household – for example, after a relationship breakdown
· You’re an existing shared owner, and you want to move
· You own a home and want to move but cannot afford a new home that meets your needs
· For some homes you may have to show that you live in, work in, or have a connection to the area
For some sites there may be a requirement for local person(s) to be given priority on the site.
Shared Equity properties offered by Merlion Housing Association are mostly new build or re-sale properties. The specific options depend on current developments and location. Local Authorities often require priority first be given to people with a local connection.
Prospective buyers of a specific site can register interest here – https://www.gov.uk/shared-ownership-scheme/who-can-apply
– Stamp Duty Land Tax (SDLT)
– Mortgage repayments on the share purchased (50% to 75%).
– Service and estate Charges
– Additional costs such as, legal and survey fees etc.
Yes, buyers can choose to “staircase” to own their property outright as your financial situation allows. This means you can purchase the MHA equity in a single transaction, enabling you to increase your ownership stake if you wish. You will benefit from any increase in the property value but please note you may also be impacted by any drop in value.
Yes, as a homeowner, you will be responsible for paying council and all other related bills associated with owning a property.
If you want to sell your home, Merlion Housing Association will go through the options available to you. We will generally require a set marketing period to nominate an eligible buyer who can buy as a Shared Equity home as you have. If this is not possible, the property may then be sold on at 100% market value, with the MHA equity loan being repaid.
Yes, there will be limitations regarding renting out the home without permission or eligibility restrictions on who the property can be sold to. It’s important to review the terms of your Equity Loan agreement with Merlion Housing Association carefully to understand these requirements.
We strongly recommend speaking with a reputable bank, building society, or independent mortgage advisor. Please note that not all mortgage lenders offer products for this type of home purchase.
We work with independent financial advisers who are experienced in arranging shared equity and shared ownership mortgages, and who have a strong understanding of the Merlion product. We’re happy to provide their contact details if you wish, though you’re free to use any adviser or lender of your choice.
Yes, buyers can generally remortgage their Shared Equity property either to release some equity or take advantage of better mortgage rates. However, it’s advisable to notify Merlion Housing Association before proceeding, as there may be specific conditions attached to the remortgaging process as well as valuation costs.
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