Shared Ownership Funding Model

Assettrust Housing has developed a shared ownership funding model which releases up to 110% of the discounted cash flow value (EUV-SH) of the landlord’s interests in shared ownership properties.

This specialist off-balance sheet finance for shared ownership properties provides significantly more funding than sector lenders would typically advance. Assettrust Housing raises specialist private finance via a dedicated not-for-profit shared ownership balance sheet and passes all the proceeds less transparent transaction costs to the provider. Management of shared ownership customers and properties can be retained by the provider via management agreements for the length of the longest lease.

Providers can also chose the option to buy the property back at the end of the capital funding period for the amount of finance outstanding plus transparent costs. The HCA have agreed that any embedded Grant will be eligible for RCGF into new housing supply and any surpluses could also be used as much needed capital for new delivery. Given the minimal impact on tenants, the TSA have agreed that this process requires consultation rather than ballot and is therefore a quick and easy form of finance.

Currently, Assettrust Housing is at various funding stages on over 8,000 properties from providers and has appetite to purchase over 5,000 each year.